IT Outsourcing VS. Software Development Outstaffing: A Complete Guide from iTizzi Custom Software Development Company in Ukraine, Kiev, Odessa, Lvov, Dnipro, Kharkov, Vinnytsia and Eastern Europe

People often need the help of qualified professionals to make their dreams come true. Software development is no exception. In fact, a team approach is almost always the best solution. Why? Because usually several parties are involved in the process: customers, developers, users, contractors. Depending on the size of the project, your needs and goals, you have a variety of options for how you are going to build and organize your team. We call these collaboration models.

At iTizzi Custom Software Development Company, we have built customer relationships for many years. We work extremely successfully within the framework of two classic, most widely used models: outsourcing of software development and outstaffing of a development team, Dnipro. And while we make a clear distinction between outsourcing and outstaffing, we are also very flexible and happy to adapt these models according to the needs of our clients in order to achieve maximum return. Let’s take a closer look at these two models.

Outstaffing and outsourcing have a common prefix – OUT. Does this mean that software development is outside the control of the client? In both cases, “outside” means external or remote, which means that the human resources doing the work are external to the company that wants to develop and deploy software for itself. They come from outside to help in this process. Outstaffing is a word widely used for software development in Eastern Europe, but it is used interchangeably with similar terms such as “team enlargement”, “team expansion”, “staff growth”, which are also widely used by various software companies.

What is software development outsourcing?

Outsourcing of software development, Kiev is widely used when someone (hereinafter “client”) has a brilliant business idea that requires the development of unique software, but does not have the resources and / or experience to do it on his own. Typically, the client of a software company does not want to be deeply involved in the details of the product implementation, architectural solutions, the hiring process, the fuss of compensation / benefits/vacation days, etc. The client just wants to get the product, and quickly. So, the client starts looking for a software outsourcing company that will provide the full development cycle and deliver the product with minimal client involvement.

How software outsourcing works

Of course, the client also has responsibilities. After the company finds an IT outsourcing company in Ukraine, the client’s next steps are:

1. Compose product requirements (PRDs) and assign priority levels to these requirements.
2. Share with the IT supplier all the necessary information about the project budget, scope, schedule, quality requirements.
3. Regular participation in meetings with a dedicated development team to discuss the project.
4. Enjoy the result.

What will the Lviv software outsourcing company be responsible for? In fact, almost everything. iTizzi Custom Software Development Company is an IT outsourcing company that does the following:

1. Accepts PRD and develops it to such an extent that the team has a very clear idea of ​​what the customer wants and what needs to be delivered.
2. Equipping the team with the necessary resources and managing their remuneration, benefits, etc.
3. Provide and manage the entire work environment.
4. Support the team to be productive and relevant to the client’s business.
5. Quality control of results.
6. Identify and eliminate bottlenecks, if necessary, attract a client.
7. Deliver the finished product.

Software Development Outsourcing: Pros and Business Benefits

Now let’s look at the benefits of outsourcing business software development:

• There is no need to create your own full-cycle department that frees up internal resources for other tasks.
• Access to more professionals as software outsourcing companies usually have a large database of engineering talent and proven recruiting channels in addition to their in-house teams.
• Team administration is taken care of so you don’t have to deal with the hiring process, payroll and team building.
• Good value for money. You can hire experienced engineers from places like Eastern Europe, Ukraine and save about 50% than paying for a full-time engineer in the US or Western Europe.

When to choose outsourcing software development?

You may need IT outsourcing services, Kiev, if:

• Your company is not technology oriented.
• You are planning a well-defined project with a limited duration and do not need or do not want to hire a full-time in-house team.
• You seek to optimize your development costs by outsourcing certain aspects of your product development.
• Your PRD is clearly defined and not subject to lengthy and detailed discussions.

To summarize, when you choose to outsource software for product development, the outsourcing provider usually acts as your independent engineering department, taking care of all aspects of your product creation or any other elements you choose to outsource.

What is outstaffing, IT staff expansion?

In short, recruiting or outstaffing means the process of bringing in an employee or group of employees from outside your company to work on your project under your complete control. You basically expand your team by adding additional employees without hiring them directly. In the old days, they were called temporary personnel. These team members are also provided by the ITizzi Custom Software Development Company for IT staffing. However, it is up to you to manage the entire product development process. Engineers join your project remotely, integrate with your existing team, and follow your chosen process; the recruitment, onboarding, workspace and training process is undertaken by a third party provider. The main question to ask when engaging an extension of the software development team is, “How much do I want to be involved in the actual development process?”

How IT staff expansion works, outstaffing for software development

When ordering services to increase IT staff, Kharkiv and working with a dedicated development team, make sure that you, as a client, understand the scope of your responsibilities. You have to:

• Participate in the selection process to find the most suitable candidate for your project.
• Provide a workload for the team and train the team on the established development process in your company, provide regular feedback on their work.
• Managing a team to achieve results in line with your business goals.
• Discuss the requirements at a very detailed level so that the team / engineers are on the same page with your home team.
• Provide environments for code, defect tracking, continuous integration, and development, testing, staging, and production; organize the product deployment process.
• Ensuring an acceptable quality of results; manage change and risk.

You can outsource any part of the work, but if you are still responsible for the day-to-day management of the team, you will be working in an outstaffing model.

Software outstaffing: business benefits and when to choose outstaffing

If you have well-oiled processes, available management resources, and confidence in your ability to manage a remote / distributed software development team, then you can easily opt for the Vinnitsa Software Development Team Expansion. You can hire engineers from iTizzi Custom Software Development Company on outstaff terms for both long-term projects (over 3 months) and for a temporary project (even just 1 week).

• With highly efficient outstaff professionals, your project moves faster.
• No additional costs for staff recruitment, staff maintenance, legal support, etc.
• You manage your team and added staff in general and approve tasks according to the priorities of your project.
• The disadvantages of outstaffing are obvious:
• Responsibility for the final product remains with the client.
• Greater involvement and more management effort is required from the client.
• In some cases, it may be necessary to bring remote team members to the location of the main team (business trips, team building).

To be able to truly utilize staffing services, you need to look for a provider with the right process. For example, here’s what we do at iTizzi Custom Software Development Company to make IT outstaffing an efficient and enjoyable experience for our clients:

• Equipping a dedicated development team with the right talent to meet customer requirements. We allocate the necessary resources from our internal talent pool or, depending on the availability and experience of our engineers, quickly recruit the right specialist from our vast engineering community.
• Provide a productive work environment (including communications, workstations, workplaces, software, electronic devices and secure Internet access) for all team members.
• Provision of a shared pool of mobile devices for testing purposes (if available at the location of a team member).
• Providing accounting and legal support for team members; payroll management.
• Provision of a personnel management system.
• Organization and management of business trips and other important trips, purchases necessary for the work of the team.
• Monthly one-on-one meetings and progress reports.

We can also provide a project manager or technical manager for

Facilitate communication between freelance engineers and the core team, taking into account the scope of responsibilities specified by the client.

When you choose which of these two models is best for your software development services, the difference between software outsourcing and outstaffing Odessa is that with the latter you get more control over the engineers, but also more responsibility from the point of view in terms of the required management effort.

Conclusion

In general, the problem of choosing between software outsourcing and outstaffing is not a big deal, given a few points:

• How much control you want and whether you dive into planning and detailing.
• How many in-house engineers do you have and what is the overall IT development experience you and your engineers have.
• How much do you want to pay for ongoing support or complete product development.
• The size of the project, and whether you want to form a long-term partnership with the supplier.

iTizzi Custom Software Development Company with many years of experience, software developers and many completed projects is equally good at both models. If you are in doubt and want our specialists to help you choose the right scenario for your business, they will advise you and offer you the most beneficial solution.