Outsourcing vs. Outstaffing: What Is The Difference?

There is an old dilemma that causes a little misunderstanding in IT sphere: what it the difference between outstaffing and outsourcing, and what are the advantages and disadvantages of using each one? To be more specific, whether to look for employees overseas, or to go with a single third-party vendor. Considering the fact that many companies prefer remote locations for optimizing their expenses, it is worth informing you where you would rather prefer outsourcing, and when outstaffing is better choice.

How are they different?

IT Outstaffing is a model that allows you to “rent” IT experts. In this case, a supplier is responsible only for the staff it provides, not their work results. Meanwhile, IT outsourcing presupposes that you entrust the entire project to your vendor, and the quality of work falls under their responsibility. Basically, outstaffing model refers to hiring remote workers to become a part of a team under your management, while outsourcing model is project-based: a vendor, not you, is responsible for the entire project.

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Advantages and disadvantages of outsourcing

Advantages

• No overhead costs
• Almost no management effort
• The provider is responsible for all the equipment as well as quality of work and delivery

Disadvantages

• A lack of control during the process
• Higher costs when compared to outstaffing

Advantages and disadvantages of outstaffing

Advantages

• Lower costs
• Full access to any member of the team and full control over the process
• Flexibility in hiring

Disadvantages

• The quality/delivery issues are in your full responsibility
• You need to provide all the equipment

Read also: Why Every Big Business Needs IT Solutions?

Which is best?

So how to use this knowledge in your business? Whether it is okay to go with an outstaffing approach, or you need an outsourcing vendor? Basically, it all depends on your business's specific requirements. If you are able to provide a qualified management to manage the team remotely, if you are ready to monitor the performance of the remote workers, then outstaffing is a great solution for you. But if do not want to spend time doing all that stuff, then hiring a vendor is definitely a better idea for you. In this case, you will delegate your project to a third-party company with all required equipment, professional team, and resources. If you need a professional opinion on IT outstaffing or outsourcing, feel free to contact us.