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Outsourcing and outstaffing: what is better for your business

#Company news

Outsourcing is helping you to save your business’ money and this is why

Today, IT services are becoming a daily occurrence. More and more companies and startups use the services of third-party specialists, who offer a choice of one of the management models – outsourcing or outstaffing. This solution provides an opportunity to grow the business in an unstable market without risk and staff expansion. It only remains to understand which of the models is right for your business.

Outsourcing: description, pros, and cons

The concept of outsourcing involves the transfer of certain responsibilities and tasks to a third-party contractor. Thus, the customer company receives those services that are unable to perform independently.

In outsourcing, communication between the customer and the contractor are based on the model client – project manager – a team of specialists. In this model, the client company discusses all issues with the manager of the contractor company. And already, the project manager distributes tasks to his team of specialists and monitors the implementation of works. In simple terms, you give the task, pay for it, and the remote team does it all.

IT outsourcing services have many advantages, but some disadvantages should not be overlooked.

Pros

Quick start

Ability to attract more highly qualified professionals anywhere in the world

Paying for an outsourcing company is much cheaper than hiring IT specialists

Cons

In the conditions of remote cooperation, it is more difficult to establish continuous communication. But it all depends on the responsibility of the team on the other side.

But the Dedicated Team in Magnise is always ready to provide you with post-delivery support: manage incidents and help with configuration updates.

Yes, you can control the hiring of an outsourcing team. But unfortunately, you will not be able to control the recruitment process on the other side. That’s why it’s important for us that you feel like we’re one team. Therefore, outsourcing services should be eligible for payment and provide only qualified assistance.

But what about outstaffing?

Outstaffing involves a slightly different model of remote employment. The customer company hires a team of specialists from a third-party organization to carry out the project or certain services and tasks but assigns the division of tasks and control over the work.

In some cases, the customer may place a hired IT team on its territory for a certain period. This improves communication and increases efficiency.

Pros

Flexible teams

It is especially advantageous to use outstaffing services for small one-time projects when a team of specialists is hired for a certain period or until the work is completed and payment is made based on the result. The flexibility of services is one of the most significant aspects when choosing an outstaffing company.

Cons

Pay attention to whether the company is ready to have a long-term partnership. It is also significant for contractors to understand the importance of post-project support.

Because sometimes you need to make changes after starting the project. And only contractors can know them. This is one of the principles of the Magnise team. Therefore, Dedicated Team in Magnise takes care of doing everything together with the customer at outstaffing. And most importantly, do it quickly, efficiently, and with deadlines.

Let’s summarize the main difference between outsourcing and outstaffing

  • Outstaffing is the involvement of the contractor’s employees, and outsourcing is the transfer of certain functions of the company to the contractor.
  • Outstaffing will help the company to optimize business processes, reduce tax and staff costs
  • The outsourcer and his specialists have extensive experience. It is difficult to find a system administrator who, for example, would be well versed in all the intricacies of setting up computers and servers.
  • Therefore, all the “buts” can be avoided by signing an agreement with the IT company, which will provide for all the highlights.
  • Both types of cooperation are an opportunity to free your head from the unnecessary analysis.

An outsourcing vendor is accountable for work results and quality.

Contrary to this, an outstaffing vendor doesn’t intrude into your work with their software engineers.

A Dedicated Team in Magnise has extensive experience in outsourcing services. If you have any questions about what to choose from, or if you need help organizing the process, please contact us.

We are ready to cooperate in the most convenient format for you.

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