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This can be done short-term or long-term, depending on the company’s needs. Typically, businesses will use outstaffing when they need extra help with a specific project outsourcing vs outstaffing or task but want to avoid committing to hiring additional full-time employees. For such cases, offshoring offers another solution we haven’t discussed yet.

outsourcing vs outstaffing

All of those drawbacks can be eliminated by hiring a company that has proven its reliability and quality by numerous projects and many years of experience. Outstaffing service offers you an opportunity to take a person from another company, place them under your management, and task the individual with an aim you have in mind. The outstaffing agencies are capable of choosing all the relevant specialists. This means you won’t have to spend a major amount of time on this task.

How to Find and Hire Outstaff or Outsource Developers?

It’s possible to leave the whole process to the professionals in this case. The remote team will do everything alone, allowing you to enjoy the final result. IT outstaffing in Ukraine is growing in popularity for many reasons, with one of them being the client’s ability to pick their preferred development team. By managing and encouraging collaboration between the remote and in-house programmers, the client has a better chance of developing efficient software. If you need to keep control over the workforce but eliminate their overhead and financial support, outstaffing is an attractive option.

Several factors come into play when considering software outsourcing. Developer rates for software outsourcing vary depending on skill level, experience, and location. The complexity of the software outsourcing project also influences costs since more intricate tasks may require specialized expertise or additional resources. Furthermore, the location of the outstaffed team in software outsourcing can affect expenses due to variations in labor costs and living standards across different regions.

Common Misconceptions About Outsourcing and Outstaffing

Waverley Software, with 28 years of experience, 230 engineers and over 150 completed projects, is equally proficient at both models. If you are hesitant and would like expert help to select the right scenario for your business, our experts can provide a consultation and come up with the most beneficial solution. Come up with a product requirements document (PRD) and assign priority levels to those requirements.

  • Therefore, Grand View Research, Inc. calculated that the cost of outsourcing and outside staffing would grow by 7.7 percent per year.
  • The service is also popular among startups that want to get the specific specialists they need for development without too much hassle, which is difficult to find in any other way.
  • The provider provides employees who work in the company’s office or remotely, and the company pays the provider a fee for their services.
  • In this case, the dedicated development team offers you an approximate description of the necessary costs.
  • At Perfsol, we have hands-on experience integrating our teams and individual IT professionals into our clients’ workflows.
  • Outsourcing and outstaffing are both popular options and have their advantages and disadvantages.

Often, companies need more than just to complete only one project or they need an ongoing development due to the size of the project. They may need to deliver long-term large projects or a set of projects bound together. In these cases, an offshore software development center (ODC) model might work better.

The availability to quickly scale the team

If you are currently debating whether to use outstaffing or outsourcing, you could benefit from learning about the pros and cons of outstaffing. Eastern Europe boasts an extensive talent pool — over 1 million IT specialists, with the biggest concentration of them being in Poland (400,000) and Romania (140,000). These software developers stand out as highly qualified professionals, who possess all-round STEM education, exceptional tech skills, and high English proficiency.

Outstaffing can help you quickly close the gaps in any team and enrich it with essential competencies crucial for long-term management. We fully understand the intricacies of information technology outstaffing and keep an eye on your needs and business objectives. As such, we will assemble a dedicated development team or open an offshore R&D center that will meet your development needs. We are an excellent option for companies looking to acquire proficient tech specialists on a reasonable budget.

Challenges of Software Outstaffing

Outsourcing refers to overall project support, whereas outstaffing involves the hiring and maintenance of individuals. So basically, we prepare a set of questions that help clients and our team to find the perfect solution to the ongoing problems and demands of the client’s business. Therefore, we would like to share some of these questions and statements to make your choice and decision easier.

outsourcing vs outstaffing

You can check our article on taxes in Europe vs the USA to learn more about this matter. Eastern European countries have been actively selected by Western tech companies for IT outsourcing and outstaffing. There are several factors that make these destinations perfectly suited for software development. Offshoring is an umbrella term that can refer to either outsourcing or outstaffing. It describes the proximity of a vendor to the client (on-shore, near-shore, off-shore), while outsourcing and outstaffing denote the delegation mode and engagement model. Accordingly, there can be offshore outsourcing and offshore outstaffing.


The first one is affordable developer salaries, which are usually 2-3 times lower than the ones offered in the USA. For instance, if hiring Polish software engineers on the basis of the B2B contract, you won’t have to cover any employer costs. Instead, your programmers will be responsible for paying taxes (on average 8,5% – 12%), while receiving a higher take-home pay.

outsourcing vs outstaffing

Here, the client heads the remote dedicated development team, unlike IT outsourcing, where a client is not in charge of the SDLC (software development life-cycle). Outstaffing is the practice of hiring a third-party business that rents its employees to you on a full-time basis. Unlike an outsourcing business, an outstaffing company is not responsible for the quality of the services they provide.

Time & material approach

Outsourcing is better for clients with shorter-term needs that necessitate turnkey service from their vendors. As mentioned above, in both outsourcing and outstaffing IT models, a company attracts a team or individual to work on a specific project/task. Also, in both cases, those developers are working on the project remotely. Still, the main difference between those two concerns the project’s management. Outstaffing is a process in which one company temporarily lends its employees to another company’s tasks. In IT, technical specialists, designers, developers, and other experts are allocated to solve digital tasks.