What is outstaffing?

Published on: April 25, 2021
Last updated: January 30, 2023 Read in fullscreen view

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What is outstaffing?

Outstaffing basically means third-party employment based on corp to corp relationships, also it can be called subcontract employment. Outstaff allows you to team up with a developer from another company without a direct employment. The main difference between the outsource and outstaff models is communication. In case of outstaff, a developer will report directly to you. Oftentimes, companies work with both outsource and outstaff models.

Outstaffed programmers

Outstaffing is a sort of offshore software development in which a client engages a software outsourcing firm contractor to do development work. It is typically excellent for clients that have a strong in-house team and wish to locate a specialist in a certain field or save money on employing new staff.

For the duration of the collaboration with offshore agencies, offshore developers effectively become remote in-house developers for the customer's organization. The dedicated team or simply a single devoted web developer works only on the project of the recruiting customer. The customer can engage in discussions, updates, phone calls, and other contacts with the specialized development team's resources in order to effectively finish the project.

Outstaffing – Pros & Cons

The main pros and cons of an outstaffing model of remote hiring are given below:

Pros

Offers greater control over the employees
Much cheaper resources as compared to in-house employees
Flexible team to scale up and scale down your teams easily
Easy priority management
High efficiency and productivity
Fast time to market
Lower project costs

Cons

Difficult communication management
A bit difficult to understand the multi-cultural mindsets
Team motivation is a big challenge
Time zones are also issues for outstaffing teams

Final Takeaway

Despite a few challenges that the outstaffing remote hiring model faces in the marketplace, a large number of IT companies including big corporations are also choosing outstaffing services in different countries like Ukraine, India, Vietnam and other parts of the world.

If you’re still not sure what kind of cooperation is a perfect fit for your business, don’t hesitate to consult with us. We work collaboratively with companies, applying our expertise and offering guidance in all aspects of building a business – from formulating strategy and developing business models to crafting value propositions and optimizing budgets.

Read on: What is the difference between Outsourcing and Outstaffing?

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