What is the difference between Outsourcing and Outstaffing?

Published on: January 25, 2022
Last updated: February 01, 2023 Read in fullscreen view

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Learn more: What is outstaffing?

What is the difference between outsourcing and Outstaffing?

Let’s start with an explanation what the difference between software outsourcing and outstaffing is. An outsourcing provider usually works on a project-based business model which means that most likely the client entrusts the outsourcing company the whole project from A to Z. The client rarely has access to the development team itself and those people who complete all the work on the project usually work on several projects at a time.

Outstaffing is a type of remote employments when a hired person carries out all the job duties for a company (client) being officially employed by another company (outsourcing agency). The latter one acts as an employer, thus is responsible for wages, bonuses, equipment granted to a worker, while a client company provides a worker with tasks and assignments.

Hence, the difference is that this service means that your software development service provider is responsible for hiring and maintenance of a software development team which is fully at the your disposal. Basically you hire your own remote employees who are a part of your in-house team. This remote software development team can be managed either by your in-house people or you can have remote managers as well.

Outsourcing offers a long-term contract with the opportunity to extend it, while outstaffing is usually a temporary contract, the terms of which are determined by the specifics of a particular project.

So, the main difference is that outsourcing refers to the whole project support, while outstaffing provides hiring and maintenance of individuals.

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