IT outsourcing and IT outstaffing are different business models that many people mix up. Choosing one of the options depends on the business task. IT outstaffing and IT outsourcing have their own characteristics and distinctive features. But there is one thing in common: both these models help saving time on finding employees and reducing costs when hiring.
Peculiarities of IT Outstaffing and IT Outsourcing Services
IT outsourcing stands for completing a certain part of the business tasks to the outsourcing company. The customer company delegates the part of the work that can be reassigned to external agencies. For example, you need to create an App for mobile devices. You can start cooperation according to the contract with an IT outsourcing company and get the final product with a detailed progress report for work within the period agreed.
For IT outstaffing we talk about staff rental. The customer company continues to supervise employees and the hiring process. But the main advantage is zero employment procedures and taxation issues. It’s IT outstaffing company responsibility. IT outstaffing service is a good solution to increase your IT team quickly. After submitting a request to the outstaffing company it can take only a few days for a new specialist to start working with you.
So, two conceptual differences between IT outsourcing and IT outstaffing are the purpose and employment management
|Business Model||The Purpose||Employment Management|
|IT outsourcing||Delegating a part of business tasks||Outsourcing company|
|IT outstaffing||Renting an employee||Customer company|
Let’s have a closer look at the advantages and use cases of these two models.
Benefits of IT Outstaffing:
- Time saving. Quick recruitment of IT specialists (UX and UI designers, Front-end and Back-end developers, Software Testers, Data Scientists, and etc.).
- No tax burden.
- Benefits of hiring foreign specialists *.
- Easy replacement of any employee with the same level of expertise and skills **.
- Experienced specialists only ***.
- Possibility to increase or decrease the number of workers saving a certain number of staff employees.
- Zero office expenses and cost of the workplace for a remote IT specialist.
* Due to the difference in salaries of IT specialists in different countries, IT outstaffing can increase income of the customer company.
** For example, Staffbe provides a replacement employee without any payment if necessary.
*** You will get an experienced specialist, from Middle up to Team Lead, according to your requirements.
Rapid team scaling due to IT outstaffing will make it possible to increase the company’s profit.
Here is an example of how the process works. Let’s say, you need a React.js developer. First you contact an IT outstaffing company, start a contract and get a list of the best CVs. The next step is a job interview with the chosen applicant. And then in 5 days a new employee starts working for you.
Benefits of IT Outsourcing
- Quick start and getting the final product when agreed
- Possible reduction of expenses in comparison to full-time staff (depends on many factors)
- Time saving on recruitment service and hiring IT team
- Contractor’s responsibility for the quality of the work
- You can focus on the key business processes
Here is an example of an IT outsourcing service. You need to develop a web application. An IT outsourcing company hires an outsourcing team of developers, managers, designers, technical writers, etc. They start working on the project and finish it in a year, roughly.
We have tried to focus on the additional clarity between these two concepts. IT outsourcing and IT outstaffing are both good models having distinctive advantages. The choice is yours. We hope this information was useful. Have you already used IT outsourcing or IT outstaffing services?