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How does IT outstaffing work in 2022? The hands-on experience by MWDN

Hiring a software outsourcing company will fully evaluate your demands, wishes, and budget and will make your project idea a reality. With outsourcing, team management happens on the side of the offshore web development agency. Traditionally, candidates go through two interview rounds. It’s conducted by the client’s managers with an aim to see the cultural fit of the candidate. Quick response is crucial at this phase, as the client and the recruiter have to synchronize their vision on the prospective team member. It’s worth mentioning that in outstaffing, each tech engineer is recruited exclusively for the client, not taken from the bench.

outstaffing model

One of the widespread concerns is that you will never know the developer’s level of expertise until you see the results of their work. For example, outsourcing agencies may provide you (and charge for!) with a team of senior engineers, but you will receive the results you’d expect from the junior developers. As a top-level company specializing in outstaffing, Integrio creates machine learning solutions and offers custom software development services. Our dedicated development team has extensive experience in web development, legacy systems modernization, software product development, and other industries. With its teams based across Canada, Poland, and Ukraine, it worked on successful projects for large companies and startups.

Pros & Cons of Outstaffing

The global IT industry is growing rapidly and is expected to reach a whopping size of $410 billion by 2027. The outsourcing team does not work for you, they work on your project. As a customer, you will not be able to directly command the development team.

  • They turned to the assistance of a Eastern European company to create an extended team of developers.
  • However, software outsourcing will require additional preparation.
  • When hiring an IT professional, they spend less time learning how to make their work compatible with your business as they’re already familiar with your processes.
  • This misconception is widespread because both methods imply the process where customers entrust certain work to remote employees.
  • Therefore, home teams are usually a great fit for software product companies and startups.
  • Meanwhile, outsourcing allows startup founders to devote their attention to marketing, sales, and pitching to investors instead of writing codes.

For hired full-time employees, you pay not only salaries but also various benefits such as sick leave, vacations, and health insurance. Your company may also provide personnel with partial or full reimbursement of advanced training courses, workshops, and visits to sports centers. What’s more, you significantly reduce your administrative what is outstaffing burdens while maintaining direct control over your staff. After all, you do not need to resolve such employees’ disputes and claims. All points are negotiated in advance and specified in the contract. Naturally, more control requires more responsibility, thus it might not be so easy to manage an external development team.

The main differences

The critical difference with Outstaffing is that typically the contracting company hires nearly 100% of the remote employee’s time. Outstaffing involves specialists from the company who have become a team under your supervision. You can control your employees, give them tasks and communicate directly.

Like with outsourcing, the client doesn’t have to worry about any operational issues. Under this model, you “rent” developers who are officially employed by another company and work from another office. This ensures close cooperation as well as strong control over project performance and completion.

What is the difference between outsourcing and outstaffing?

Grid Dynamics is a digital-native technology services provider that accelerates growth and bolsters competitive advantage for Fortune 1000 companies. The company has 15+ years of experience in digital transformation and software innovation, most notably open source cloud-native programs. During the active collaboration process, the client and the outstaffing vendor have mid-term sync-up calls and share feedback. The client can also consult with the vendor about the practical questions such as remuneration or processes set-up. Next, the recruitment process is held on the side of the outstaffing vendor.

outstaffing model

By understanding the key differences and benefits of each option, companies can make an informed decision that aligns with their specific goals and objectives. Assessing the pros and cons of outsourcing and outstaffing will enable businesses to choose the most suitable model for their unique circumstances. IT outstaffing allows you to finish your IT projects faster by expanding your development capacity. It allows you to save a lot of time and costs while it still provides you with full control over the development process. You’ll have access to a team of skilled developers that are already trained to do the tasks you need them to do. This allows you to scale fast without having to find and train talent yourself.


According to a study, 59% of US companies outsource to external IT vendors to reduce hiring costs. The salaries for experienced developers in Western countries are considerably expensive compared to those in developing nations. Outstaffing allows companies to hire capable developers with a lower budget. Outsourcing allows companies to be very flexible when fulfilling their software development needs. Besides access to a global pool of talented developers, they delegate the entire software development lifecycle to third-party managed IT, teams. The hindsight is – companies have little control over how the outsourced team operates.

outstaffing model

Then our specialist, who will accompany you during the project, will schedule an intro call to get all requirements and cover all interaction processes. It is also possible to involve a technical specialist to dig deeper and get to the core of your product’s functionality. We generate a candidate pool that complies with your demands. Together, we arrange a technical interview so that you select the top prospects to work on your project. In case of unsuccessful cooperation or certain challenges, you will simply no longer work with this firm or freelance developer.

When is it better to choose outsourcing for a software development project?

If experts have already been engaged in projects similar to yours, it would only be a big plus. However, there are companies that want people working on their projects to physically be a part of their team. This is impossible with software outsourcing and outstaffing, where the specialists are officially employed by the vendor located in another country or even overseas. Investing in the training of third-party contractors instead of your own employees is also something to think about.

outstaffing model