Outsourcing vs Outstaffing Models in IT: What is the Difference?

Therefore, it’s better to have tech-savvy experts in your existing team if you choose outstaffing model. In outstaffing model, the whole scope of work is controlled by customers themselves, who have direct access to the development team. Often, they manage the hired team along with their own; the payroll is handled by a contractor , though. Businesses who don’t have in-house personnel who can fully satisfy their needs would benefit from both outsourcing and outstaffing. Both of these tactics will work well for businesses that lack the technical expertise required to complete their development projects. Hiring a distant full-time or part-time specialist who will operate as a temporary member of your in-house team is what outstaffing entails.

Outsourcing vs. Outstaffing

The whole project responsibility is on the contractor company. When it comes to communication, the client company communicates with the project manager of the outsourcing agency about the latest updates, deadlines, and requests. However, there is a reason for the existence of outstaff services. In the case of freelancers, no one can guarantee you their expertise and fulfillment of all the requirements. Additionally, these companies are interested in your success, because it directly impacts their reputation and recognition. Thus, we will stick to the outstaffing approach and will use it as the main scenario for further guidance.


To rephrase it, in terms of outstaffing, the client always makes the final choice. Traditionally, team extension is a service, proposed by outsourced companies. Alternatively, there are the same outstaff developers, who are independent.

Outsourcing vs. Outstaffing

You just need to define the roles and a vendor will backfill the vacancies and help you integrate remote team members efficiently. The outstaffing vendors usually have a network of talent to let you get off the ground in a matter of weeks. For instance, we at nCube can build your team in 2-4 weeks thanks to our access to 100,000+ engineers. With outsourcing, it takes more time to dive into product development, especially when you need to go through such steps as product design, MVP, development, testing, and more. Outstaffing is ideal as a long-term IT staff augmentation approach for companies with an existing IT team.

Azoft Outsourcing Services

Outstaffing services enable the client to take over all the project manager duties. Whereas outsourcing trends are all about paying for a “hands-off” approach, outstaffing puts you in the driver’s seat to ensure you get exactly the results you want. These can be remote employees, remote vendors, or even entire companies or boutique firms.

I’ve put together a quick comparison of the most important software development paradigms to make your life a little easier. So, let me explain the distinctions between outsourcing and outstaffing. It enables the businesses to choose only the candidates that match their demands and to downsize or augment the enlarged team when appropriate. The main difference between outsourcing and outstaffing is the subject of the contract. As we have already found out, outsourcing and outstaffing are two popular schemes for attracting third-party personnel to perform tasks in favor of the customer company.

IT outsourcing and outstaffing scene in Poland

It is obvious, that it’s connected with the reducing costs for development work. The maintenance of IT departments of large corporations requires enormous costs. In order to reduce them, the companies refuse of full staff of programmers and transfer some part of their work to other companies, mostly abroad , which is much cheaper.

Outsourcing vs. Outstaffing

Ability to attract highly qualified remote workers from anywhere in the world. Since the choice of an outsourcing agency is not limited by location, there is always access to many specialists with unique skills. In the first case, certain tasks are delegated to one of the contractor’s teams. And in the second case, the contracting team manages a whole segment of work within the customer company.

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They are both ways for a company to get help from outside.

Outsourcing vs. Outstaffing

Depending on your project requirements, this approach allows you to engage any software development specialist or a group of them. Outstaffing, on the other hand, necessitates project management what is outstaffing on your end. Many vendors will charge you a higher hourly rate for a minor assignment, but will reduce their fee if they know you will return for larger projects in the future.

Why choose Poland as an outsourcing and outstaffing destination

So, instead, your HR department will have to choose from the available specialists in your region. To solve these problems, the business owner contacted a foreign software development company. The company provided a worker of their own and they’ve been working for the company ever since. https://globalcloudteam.com/ Whether you choose IT outsourcing or outstaffing, product quality and an honest partnership must come first. In terms of IT outsourcing and outstaffing, Poland wins in many ways. The differences and similarities between outsourcing and outstaffing are discussed in more detail below.

  • The company providing the services pays for salaries, taxes, compensation, insurance, software licenses and equipment.
  • The outstaffing agencies are capable of choosing all the relevant specialists.
  • However, when it comes to outstaffing, the reasons and conditions to use this method in terms of software development are slightly different.
  • This sort of full cycle software development can be a hindrance in some cases.