The modern job market is not restricted to country borders. Companies can hire skilled and resourceful candidates from across the globe. Remote work and platforms like turing.com have made it possible.
But the challenge occurs when you have a project that needs more resources than what your existing staff can handle. Then, you will need to hire more help. And, this is where outsourcing and outstaffing come into the picture. In the IT sphere, outsourcing or outstaffing has been on the rise over the last few years. Companies make use of the service to hire remote developers in order to provide top-notch services and outpace your competitors.
Basically, when a company hands over certain work or tasks which were to be performed by in-house employees, it is known as outsourcing. These are done frequently either in the scenario where there is a sudden influx in total workload. It is also known as Business Process Outsourcing or a more widely used term in corporate lingo for the same is BPO. This common practice has impacts on a wide range of job types stretching from IT services to support to manufacturing. In most scenarios, it is undertaken for cost reduction and increased efficiency.
Software development outsourcing by a company can be done by choosing to –
- Onshore – within their own country
- Nearshore – to a neighboring country or countries that are in the same time zone
- Offshore – to a distant country
Outstaffing is a type of remote employment where companies hire remote developers while the developers are officially employed by another company (oustaffing agency). We will look into how software development outstaffing works in detail later.
Now that you understand what is outsourcing and outstaffing, you will need to smartly choose one of the practices for your business needs. If your company has no software department or is a non-tech organization or is a startup with no IT specialists then you should pursue outsourcing. But, if you are just understaffed or looking for a specific skilled expert to work with your in-house team, then you should pursue outstaffing.
An outsourcing agency or company works on project based business model. That means when a company outsources from a third party, they entrust the outsourcing company with the entire project from A to Z.
Take a look at the software development outsourcing model –
Two main management structure in the above model are the client-side and the vendor (outsourcing agency) side. Client-side managers are responsible for organizing and managing the project from the beginning to the end result. The vendor is in charge to provide a proxy manager who will ensure that the deliverables are on time and of top quality.
Outsourcing is not just for the IT sector, the practice can be adopted by other companies of different industries as well.
With outsourcing, a company needs to hand the whole IT-related tasks or software development projects to outsourcing agencies. This won’t work with companies who want to control and manage the development process themselves.
But, with the outstaffing model, the company will be in full control. They can hire remote developers who can contribute and fill the gap because of lacking resources.
Take a look at the software development outstaffing model –
A company can extend their in-house team with highly skilled developers depending upon their short-term or long-term project goals.
When you hire remote developers, you need to follow certain steps to make the remote working work effectively.
- Goal setting –
Regardless of outsourcing or outstaffing, a company’s first step before hiring should be – goal setting. Get the answers to the following questions-
- Are you lacking resources?
- Do you need to expand your team?
- Do you want to cut down the development cost?
- For how long will you require the onboarded team’s service?
After you clear your objectives, look for the right vendors or experts.
- Prioritize hiring the right expert/vendor –
The next step to making outsourcing and outstaffing work is hiring the right expert/vendor. Check out the following factors before you hire them –
- Their portfolio
- Their strength in the domain that you are looking for
- Check previous client’s reviews
- Check their rating on various platforms
- Avoid the lowest bid –
Going for vendors or experts who are cheaper than others might cost you heavily. Quality does not come with a bargain. Always choose such bids where your key performance indicators are not compromised.
- No fixed price offer –
At first, it might look like a wise choice to go for a fixed price because you will not have to worry about finances later. With a fixed price, you will pay the outsourcing or outstaffing agency for a predefined set of services for a set price. Although it does offer a sense of security, you may face other concerns. For example, when it comes to software development – changes, maintenance and updates are unavoidable. If you require these services, negotiating for the cost can be frustrating.
- Contract is a must –
To understand the future of the project, settle legal issues and refund policies, a contract should be signed. It is the best way to resolve any future conflict that can disturb your business.
- Start small –
If you are to hire remote developers for the very first time. It would be wise to start off with small projects. Once you have enough experience you can go for bigger and more complex projects.
- No upfront payment –
Upfront payment is a strict NO. A more sensible way to decide on the payment would be paying a third of the price at the beginning and the rest after completion.
- Communication is essential –
When you hire remote developers, communication is the key ingredient for cooperation. So, it is necessary to establish an effective communication channel to prevent any failure.
- Always measure –
When you hire remote developers, it is essential to keep track of the progress of the project. It shows if everything is on time and the work is being done.
As already mentioned, hiring the right vendor or developer is crucial for your project’s success. One of the platforms that can help you remarkably in doing so is Turing.com.
The company helps you hire the top 1% of 1M+ developers from 150+ countries. Turing hire offers pre-vetted top-notch Silicon Valley-caliber remote developers. Every developer go through a rigorous vetting process of over 5+ hours that consists of –
- Work experience assessment
- Tech stack tests (algorithm challenges)
- Live coding challenge
The vetting process ensures that the developer is highly skilled in the technology they expertise in. Turing company makes remote work easy with intelligent vetting and fast hiring.
This article covers the definition of outsourcing and outstaffing, their working model and effective tips to make them work. Whether you choose outsourcing or outstaffing, ensure that the onboarded team is reliable, who can meet deadlines and deliver a high-quality product at an affordable price.
Author Bio –
Anupriya is a content writer who is passionate about writing on a variety of topics. When not writing, you can find her reading or sketching.