Outsourcing VS Outstaffing: How To Choose Your Development Model

Software development is gradually emerging from the optional service into an integral component of the majority of industries worldwide. The software development services will continue to gain more and more interest as long as each and every company cannot have a dedicated IT-department.

There are numerous development models, but the most popular and widespread are outsourcing and outstaffing approaches. Both models have edges and shortcomings. Let's find out which model suits you the most and see how TekkSoft manages to combine the best out of these two.

Software Development Outsourcing: Autonomous Processes and Long-Term Commitments

Software development outsourcing means you trust the service provider to manage all process layers: from the project planning to development managing and financial monitoring. The only two things outsourcing companies need from you are the initial project requirements and funding. They handle all other aspects by themselves.

Now, while isolating the development process is super convenient for companies with little experience in IT-industry, this also brings some drawbacks:

• No direct management opportunities. You cannot communicate with outsourcing developers. Your only communication endpoint is managers. This leads to complicated software change management;
• Long-term financial commitments. Pre-payments are a matter of risk for long-term projects. You can end up with the company requesting additional funds to wrap up the underestimated project after completing all planned transactions;
• Lack of flexibility. You get what you've initially requested is the motto of software development outsourcing. Change requests are costly and require significant time to complete.

On balance, software development outsourcing is a decent option for short-term projects with transparent and unambiguous requirements.

Software Development Outstaffing: Flexible Workflow And Comprehensive Management

Software development outstaffing is an entirely different approach to creating software products. This model implies taking control of the action instead of delegating the project management to a service provider.

The outstaffing company provides you with developers you can use to build a product. It is up to you to manage their time and tasks. You pay for developer hours spent on the project. This enables you to change the tasks dynamically and pivot your objectives at any time suitable. Now, while it may sound like outstanding flexibility, here's why it is also a disadvantage at the same time:

• Management expenses. You need to manage the workflow of your developers and organize the process on all levels;
• Expertise limitations. Your technical knowledge and opportunities are limited by the expertise of outstaffed workers. This means there is no guarantee that the team can reach the new milestones you introduce during the project.

On the whole, outstaffing is an excellent choice for agile startup projects that need dynamic management.

TekkSoft Development Model: How We Bring Your Product To Life

Taking all the outsourcing and outstaffing aspects into account, we combine these approaches to create a hybrid that has all the benefits of the two. Here's how we do it:

• Monthly payments. This is a low-commitment payment model that allows you to limit your project expenses;
• Transparent communication. We establish transparent communication channels with our managers and developers. This way, you can always see a bigger picture of a project and understand what development stage it is in;
• Project management and optional customer involvement. We take care of the project management. At the same time, we allow you to take part in the process to match your expectations;
• Knowledge sharing. We have a strong knowledge base and established processes of experience sharing. This allows us to come up with solutions within the company, without external expertise;
• Staff augmentation. Our flexible team is an excellent extension for your development department. We would love to add knowledge to your technology expertise to boost your dev product development.

All in all, TekkSoft offers a convenient payment model, project management, and flexibility in your development. This allows us to outperform both outsourcing and outstaffing models.

The Bottom Line

There isn't a poor or universally good model. It really depends on your objectives and priorities in the project: whether you focus on locking in the project price or strive for flexible processes.

If you are looking for maximizing your cost-effectiveness and flexibility, drop a line to our Tekksoft experts. We are a dedicated team of professionals fuelled for success. Get in touch right away to feel a new level of quality development services.