Outsourcing vs Outstaffing Models: What is the Difference and Their Pros & Cons

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Nevertheless, both outsourcing and outstaffing are in high demand as companies and startups seek to scale their operations and pursue rapid growth. Suit your project’s requirements in terms of experience, expertise, availability, and skill sets with hand-selected developers at Uptech. The main difference between outsourcing and outstaffing is the subject of the contract.

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When you outsource work, you’re essentially giving up some control over the final product. This can lead to subpar work being produced, which can be detrimental to your business. This can include tasks like customer service, manufacturing, and even IT support. Outsourcing can be beneficial as it allows businesses to focus on their core competencies while leaving less important tasks to other companies. Outstaffing allows you to focus on the things that matter most to your business. You can outsource those tasks that are not a part of your core competencies so that you have more time to work on other areas of your company.


Decide which method works best for both parties and agree on them. For example, you use tools like Slack, and Asana to plan, discuss and keep track of projects. Some companies have an existing IT team, while others, such as startups, choose outstaff to operate without one. If you lack technical capabilities and can’t lead a team of developers, outsourcing is the better option. It allows startups to focus on other key business areas while getting their apps to market quickly.

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It means that the outstaffing vendor is responsible for providing a qualified specialist to the client, paying their salary, and doing all HR management. The client is responsible for the tasks, supervision, and control over the development process in which the outstaffed developer is involved. According to a popular definition, an outstaffing company specializes in finding necessary talents to cover a business function outside your core team. For instance, Integrio Systems facilitates hiring and provides team extension services to help its clients scale up the software and app development process.

  • The third-party company provides the client with a team of the most skilled and self-managed experts suitable for their IT project.
  • Outstaffing is a type of remote recruiting model in which a vendor provides a specialist or a group of professionals for a client’s project during the contract term.
  • We have enhanced 100+ teams of our partners all over the world, helping them pick the right people for crucial positions and deliver the best result possible.
  • The number of documents a European logistics company signed increased x4 with the help of implementing a modern OCR solution.

Assessing the pros and cons will enable your businesses to choose the most suitable model for their unique circumstances. In this scenario, the client has more control over the work and can make adjustments as needed. The outstaff team, sourced by the outstaffing agency, can be managed in a way that aligns with the client’s specific needs and requirements.

Offshore Development Models

We have enhanced 100+ teams of our partners all over the world, helping them pick the right people for crucial positions and deliver the best result possible. IT outstaffing services with Geniusee are the best way to expand your expertise and conquer bigger market share. ActivePlace is a social platform dedicated to health, fitness, and an active lifestyle. It is a three-sided network that connects people with like-minded individuals, mentors, and businesses – all related to physical activity and healthy living.

On the other hand, outsourcing passes the web development process to a third firm. You’re an insurance company that requires a compliant customer relationship management (CRM) platform to manage your client’s data and process claims more effectively. However, your tech department is either too small or too busy to deal with end-to-end development. Naturally, you would like to have a compliant and reliable solution without spending valuable time on searching and hiring skilled and experienced developers. In this case, outsourcing development to a tech vendor is a time and cost-effective solution. It depends on whether you want to control the project development process yourself (outstaffing) or delegate it entirely to a third-party service provider (outsourcing).

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However, outsourcing is a feasible option if technology isn’t your core business. 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.


Both outsourcing and outstaffing yield strategic benefits for businesses that lack in-house resources. However, outsourcing refers to delegating the whole project to the vendor, while outstaffing means hiring individuals to work remotely. You hire professional employees at an IT outstaffing company to work for your company.

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As we have already found out, outsourcing and outstaffing are two popular schemes for attracting third-party personnel to perform tasks in favor of the customer company. In outsourcing, communication between the customer and the contractor occurs according to the client – project manager – team of specialists model. Another of its ongoing projects involves the creation of data management solutions for the health insurance provider CareOregon in the U.S.

The company approached the development team to create a wellness app that would cater to different categories of users and provide personalized functionality to each member group. The main goal was to build a unique project from scratch that combined social media and marketplace features. Here, it’s essential to find out if the company can provide you with the necessary number of employees with the right skills.

Common Misconceptions about Outstaffing and Outsourcing

Outstaffing is ideal as a long-term IT staff augmentation approach for companies with an existing IT team. It allows them to quickly set up a remote team that can be productive almost immediately. Meanwhile, companies choose outsourcing when they lack IT capabilities or want to use external resources to build an app.

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