Everything You Need to Know About Outsourcing and Outstaffing

Everything You Need to Know About Outsourcing and Outstaffing

No matter how skilled or experienced a company’s employees are, certain projects require a large number of people, which raises the need for third-party support teams. As far as industry-related statistics go, up to 70% of outsourcing/outstaffing transactions were related to the IT sector – more specifically, digital marketing and software engineering. Choosing between software outsourcing and outstaffing can be confusing – read on to find the difference between the two and how to choose what’s optimal.

What Is Outstaffing?

You can think of this model as a temporary expansion of the current staff, with the employer having full control over the out-staffed team’s duties. They work together with the company’s team, complementing their skills and essentially boosting the company’s capabilities for the duration of the project. The supervision, tasks, and objectives are all handled by the client’s manager, making them completely responsible for the project’s success.

On the other side, the provider of the outstaffing services is responsible for finding the professionals most suitable for that task. They take care of the wages, administrative responsibilities, HR-related functions, equipment, etc. Essentially, the client corporation gets all the benefits of full-time employment with all the technicalities out of the way.

Outstaffing: The Good and The Bad

Learning Opportunities

The newly hired professionals are likely going to bring some unique skills to the table. The nature of their employment allows them to pass on the methods and techniques that might be unfamiliar to the client company’s personnel. This means that even after the project is done, the company still retains a lot of value from it.

Full Responsibility & Control

The quality of the finished work is completely up to the client. They can handpick the IT professionals that they think would suit the company the most, as well as overlook all assignments. It’s much more flexible, direct, and ensures better results.

Skill Gaps

There’s always a possibility that outstaffing could lead to a difference between the knowledge of the current employees and new professionals. This could further lead to communication issues and might even cause the project to fail, which is why it’s important to pay close attention to who the new hires will be.

What Is Outsourcing?

If the full responsibility of outstaffing isn’t appealing, outsourcing gets rid of that issue. Simply put, outsourcing work to companies implies that the decision on how the project is completed is up to them. Project management, assignments, overseeing, and other duties are left to the provider company. The outsourced work is usually completed by professionals that come from other countries, which gives you a larger talent pool to work with.

With outsourcing, the client corporation doesn’t have to worry about any additional management. The only important thing is to find a good vendor that has the experience and knows how to choose the right people for the job.

Outsourcing: The Good and The Bad

Access to Better Technology

Since all of the work is done by the external company, it’s possible that they’ll have all of the latest technology to complete the work as fast as possible. Furthermore, the client doesn’t have to spend any additional money to acquire new resources that might be necessary for the project.

More Professionals to Choose From

Outsourcing companies hire skilled IT experts from all around the world, which means that there’s a higher chance that the final product will be of much higher quality. Also, foreign professionals usually have lower rates compared to the native ones.

No Long-Term Benefits

Whereas without staffing the in-house employees get to learn and keep new skills, outsourcing work means that there is no direct contact with the external team. As far as the value for the company goes, the only thing that they receive is the project – there are no advantages that will spread over other ventures.

Outsourcing vs Outstaffing – Choosing Between the Two

What’s best for the company depends on the circumstances – if you want to spend less money, have complete control, and even learn something new – outstaffing is arguably going to have more benefits. It functions as a temporary extension of the company, making it more efficient and powerful for the duration of the project.

On the other hand, outsourcing works better for companies that have occasional needs for certain IT endeavors. They’re more expensive, rely on the skills and experience of the vendor itself, and give the client no direct responsibility for the project. There is no contact between the employees, functioning as a pay-and-forget approach.

Before making a decision, it’s important to analyze what the company is trying to achieve. Ultimately, this will help you make the right choice and receive the best return on your money.

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Kim

I am a writer with a deep passion for reading and watching movies. You will find me with my nose buried in a book or screen most of the time.