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Plus, outstaffing professionals hire globally to unite team members from the compatible time zones, and arrange check-ins with the team to ensure everyone is on the same page. Every personnel choice is crucial for a startup with a small team that lacks funds for refills and substitutions. For business founders who can’t find and filter candidates themselves, outstaffing or outsourcing is a great winning strategy.

outstaff team

The report highlighted the attractiveness of software outsourcing and outstaffing models. Both provide businesses the flexibility to access a vast talent pool and fill missing skill gaps in their team. An outstaff team is a group of developers that work remotely for your company. They are typically based in another country and offer a cost-effective alternative to hiring full-time employees. Outstaff teams are becoming increasingly popular as more companies look for ways to reduce their overhead costs while still having access to top talent. There are also situations when it’s better to combine outstaffing with an in-house model.

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Command of English, corporate policy, cultural aspects, responsiveness are important components of sound business cooperation. Efficient communication also suggests understanding your business needs, asking objective questions, and paying attention to the smallest details. All in all, your outstaffing partner should be able to dive into your problems and provide the best solutions to them. We recommend making a check on a potential outstaffing partner to exclude doubts in terms of its reliability. All in all, make sure that the company has a stellar reputation on the market and an incredible track record.

First, companies realize the need for the services of a couple of developers, or maybe a whole team, for your software projects. Organizations from various industry niches always need experienced IT specialists with the appropriate knowledge in their field. How to prevent fraud in the supply chain, store patients’ data, or build an app that analyzes insurance-related data and comes up with a prediction? All these cases can be covered by experienced software developers and the appropriate experts. The global talent market offers twice fewer AI experts than businesses require. You need to put effort if you want to hire AI developers who match.

The outstaffing model is recommended for clients who:

In this article, we’ll explain why this is a game-changer for your business and what benefits you can expect from working with an agency. Software outstaffing, or staff augmentation model, is an extension of the in-house development team as if they were a team next door. In IT outstaffing, you hire individuals from outside your organization to do the work under your monitoring. Most of the time, businesses follow this structure to hire faster and more effective workers outside their territory. Outstaffing is an offshore development model where the client hires a contractor from a software outsourcing firm to carry out development tasks. The employee works full-time on their project but is paid by the third-party company.

outstaff team

When sharing sensitive project information with an external team, you should think about how they store shared data. Working with a diverse team from different regions can enrich your project with unique perspectives. However, it might also lead to clashes due to cultural differences and varying work approaches.

Remote or in-office team?

Typical vendors are vetting marketplaces that test developers and handle all legal matters. This company is responsible for all legal matters, taxes, insurance, bonuses, etc. We guarantee confidentiality to all our clients because signing NDA is obligatory in our company. Providing comfortable working conditions and all the necessary hard-and software facilities, we ensure the quick and effective work of our employees. If you consider software solution development, you should be well-informed and up-to-date about the IT companies you consider for your next project.

If you decide to outstaff, the responsibility for an employee is put on your IT partner. Office space maintenance, providing IT specialists with hardware, offering some social perks — all of this is done by the outstaffing company. Under the staff augmentation model, you need to keep track of the project’s progress by yourself. The quality of collaboration between newbies and the in-house development team also depends on how well the processes are organized. In brief, outsourcing is when you pay for the project to be built for you.

Common Challenges in IT Outstaffing and Ways to Overcome Them

Let’s explore the key elements that constitute this transformative process. Set measurable goals and milestones for the project to help the team stay focused and motivated. Break down larger objectives into smaller, actionable tasks, and regularly track progress towards these goals. + You have direct contacts of all your team and can manage them. + Flexible workflow with multiple people finding a better solution for every aspect.

outstaff team

Staff augmentation gives you more flexibility and independence. Managed services, in turn, save you time and enable you to focus on a broader growth perspective. This method of cooperation is applied in cases when you lack tech expertise to evaluate the results of work.


Your projects probably won’t be the first your team is working on together. This certainly increases the chance that the development process will go smoothly. While outstaffing your work can effectively solve your business goals, it has its own risks and drawbacks. You can also replace them and end up your cooperation when their work is done. Hiring the best outstaff developers is basically the same as hiring a new staff to work for you, except for lower rates and savings on recruiting expenses. We find the best talent from around the world in a matter of days, and take care of all expenses related to hiring, onboarding, payroll and management.

  • That may later result in piling on additional costs over the initially planned budget for outsourcing.
  • You form your requirements, communicate only with hand-picked potential hires, and confirm or reject them.
  • Compared to outsourced specialists, outstaffed ones work exclusively on a client’s project.
  • For example, today multinational teams are the norm for most IT companies.
  • Outsourcing will benefit you when it comes to full-cycle product development.
  • Hiring the best outstaff developers is basically the same as hiring a new staff to work for you, except for lower rates and savings on recruiting expenses.

It does not require you to define the complete set of project requirements at the beginning; you can adjust the size of your outstaffed team as your needs change. While in-house development requires paying regular salaries, providing workspaces, and procurement, outsourcing becomes a cost-effective solution. Not to mention, software outsourcing can be a great advantage for startups. It can help them grow their business by allowing them to focus more on operations and business development rather than worrying about the software. Both software outsourcing and outstaffing will more than ever become an integral part of the way global business works. So why should an employer pay a New York salary if it is possible to pay the Ukrainian wage and get the job done with the same results?


The contracted IT agency is responsible for recruiting and managing team members, handling administrative tasks, and submitting project deliverables. With outsourcing, the hiring company need not maintain in-house IT capabilities. Statista forecasted that the IT outsourcing revenue would hit US$395.00 billion in 2022.

Need one tech talent or an entire team?

An ability to manage outstaffed specialists can be considered as both the advantage and disadvantage of this business model. Management of a remote team may be rather challenging especially if your PMs and team leads have a lack of such experience. Outstaffing suggests that you are fully responsible for the end product, and you as outstaff team well as your management staff must be ready for this. Staff recruitment can be an effortful and time-consuming process. A decent IT outstaffing company can quickly provide you with IT specialists that perfectly match your requirements. Either they can be picked up from its own rich talent pool or custom recruitment can be done.

That’s why, sticking to an agile team structure in software development can benefit AI projects. Regularly assess your team’s progress and make necessary adjustments to optimize your AI solutions based on real-world usage and changing needs. It would be easier to arrange if you collect and analyze customer feedback, reviews, and Net Promoter Scores (NPS). You might be aware that AI can analyze vast datasets, automate tasks, and make predictions that were once impossible, providing businesses with a competitive edge.

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