Extended Team vs. Dedicated Team Model: Which Works Best for Your Project
Types of Outstaffing Services and Remote Web Development
Guided by one of the important aspects of outstaffing vs outsourcing – building a business relationship at the “customer-performer” level, the remote web development models are distinguished the following way: horizontal (American), pyramid (Japanese) and mixed. In contrast to the horizontal model in which a larger number of executors solve one assigned task, the pyramidal model implies longer-term cooperation with the possibility of developing industry and intersectoral clusters. But in the practice of outsourcing European countries, including outstaffing Ukraine, there is a mixture of pyramidal and horizontal models that bring to the emergence of outstaffing company market that provides dedicated teams and outstaffing agency that will satisfy your needs. And it’s completely different from Asian countries e.g. outstaffing Philippines.
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Difference Between Outsourcing and Outstaffing Dedicated Teams
The common thing that is in both cases you are working with remote web development. But with outsourcing you are paying for your project to be done, so it’s not important who is working on your projects, and with outstaffing services, you are hiring real people and working with them, remotely though.
Depending on the tasks that are transferred to the decision by the performers, the following types of outsourcing can be identified:
- Production outsourcing – transferring production functions to the contractor.
- Business process outsourcing – transferring processes to the contractor that are not the main activity of the customer (see BPO definition).
- Software development dedicated teams or outstaffing vs outsourcing – transferring the maintenance of the customer’s information systems.
Thus, the transfer of non-core and highly specialized activities of the customer is one of the indisputable advantages of the cooperating with outstaffing company. Moreover, by choosing PEO as your partner, you don’t have to worry about employees’ retention. If you are wondering what PEO is, the PEO definition implies a professional employer organization that provides human resources management services, payroll processing, benefits and insurance, etc. PEO meaning is crucial in remote teams management.
Pros and Cons of Outstaffing vs Outsourcing
So let’s deep into a more detailed comparison of outstaffing vs outsourcing and see what pros and cons outstaffing vs outsourcing models has.
| Outstaffing | Outsourcing | ||
| Pros | Cons | Pros | Cons |
| – Full-cycle project development | – Time-zone differences | – Full control over a project | – Time-zone differences |
| – In-house experts (developers, project managers, QA engineers, designers, marketers, etc) available immediately | – Language barriers | – Project’s priorities can be changed any time | – Language barriers |
| – Cheap development services (depends on the outsourcing country one chooses) | – Team size can be easily scalable | – Limited control over a team | |
| – Unlimited control over a project and team members | – Costs saving due to the absence of project manager, business analysts, and quality assurance processes | ||
So if we talk about outstaffing vs outsourcing, the main difference between these two models (dedicated teams of outstaffing vs outsourcing hiring process) is that outsourcing refers to the full project support, otherwise outstaffing dedicated teams model provides the hiring and maintenance of remote web development process and an outstaffing agency.
When deciding to work with outstaffing company, clients often rely on the following advantages of hiring dedicated teams:
- Reduced costs. Reduction of payments, as well as the absence of an additional social benefits package, which the employer provides to its remote talent;
- Flexibility in cost-sharing. It includes drawing up a work schedule, mobility and reduction of permanent staff, attracting temporary IT staffing depending on the need.
- Access to the best professional skills. It can be achieved by replacing the insourcing by accessing labor reserves, and methods available to outstaffing agency.
- Predictable, standardized (international) processes. Leadership and quality of contractual work.
- The concentration of capital and rebalancing of regulatory or business risks. The concentration of professional skills, technology, and internal interaction.
However, the practice of outstaffing dedicated teams can also cause a negative attitude. Opponents criticize outstaffing services, arguing the loss of jobs during the dislocation of production processes. ln defense of dedicated teams, arguments are made about the more efficient allocation of resources.
Outstaffing Company vs Outstaffing Agency
Let’s take a look at the main differences between the outstaffing agency and outstaffing company.
#1 The scale of services provided
Outstaffing agency will have narrow specialization and can provide specialists to provide the most effective and high-quality results. Outstaffing agency is often founded by dedicated teams that educate their engineers and adapt their skills to the needs of specific outstaffing services and operations.
However, the downside to the high quality of the outstaffing services provided in such outstaffing agency is not multi-tasking and it has virtually no experience in conducting several operations and processes at the same time. Therefore, their potential in the volume of outsourcing is small enough, but in the case that a company interested to extend development team for only one of the processes, such outstaffing agency is the best solution.
If an outstaffing company does not need to separate all its processes, a large number of contractors will only complicate the control over the workflow. In turn, the efficiency of working with an outstaffing agency decreases significantly. Therefore it is more profitable to hire outstaffing company with the ability to establish R&D center in future. Research and development or R&D definition is associated with activities aimed to innovate products and services. To meet the increasing demand for data-driven decision making in web development, businesses are now looking to hire remote R developers through outstaffing services.
The outstaffing company captures more processes, as they usually have several teams or departments within the same company. Huge outsourcing companies can provide very flexible and convenient prices for their services. At the same time, the quality of such companies may be slightly lower than that of specialized agencies. In case if dedicated teams are needed, the best solution will be to use the outstaffing company, as the project manager will assume quality assurance and control over developers, analysts, and IT specialists.
An outstaffing company will be able to provide you with all kinds of IT product development and support, but sometimes it is much more profitable to divide services between small agencies or dedicated teams in order to increase the quality of the service provided.
#2 Availability of specialists and selection outstaffing company
The search for specialists and the methods for selecting a company that will provide you with a service vary greatly. However, it is always crucial to remember what does outstaffing vs outsourcing means and what can it bring to your company. It is necessary to carefully analyze the portfolio of specialists and proposals from small companies or single professionals. It’s also important to pay attention to what type of agreement you will have when cooperating with an outstaffing agency or dedicated teams. Sometimes, the cooperation with an outstaffing agency or outstaffing company that will provide you with quality remote web development service is a more safe variant.
If we are talking about outstaffing company and dedicated teams, the selection process may take longer. Outstaffing agency provide a narrow range of outstaffing services the control and verification of their specialists should be checked much more carefully. Do not underestimate RPO meaning while hiring staff with the help of such agencies.
Finding an outstaffing company is much easier and more accessible. Checking outstaffing company through its corporate website, the practice of working with different projects. And it’s quite easy to find outstaffing company on the Ukrainian market that will provide a wide range of outstaffing services and already have substantial experience with many large and large-scale projects.
#3 Independence and reliability
Due to the specification of the outstaffing services provided, outstaffing agency may cooperate on a quite independent agreement, which can be beneficial for customers.
When working with remote web development, you can demand more careful monitoring of processes, create a more strict agreement to ensure that their reliability is verifiable. In this case, the outstaffing company is likely to provide reports on the stages of work, clear responsibilities according to contract, clear teamwork and the result on time.
The question is what companies provide outstaffing vs outsourcing are much more reliable and cohesive to rely on them. But at the same time, both outstaffing vs outsourcing regulations of cooperation with are more energy-intensive and formal, while independent outstaffing agency can work exclusively for you.
As a result, the differences between outstaffing vs outsourcing companies can be significant and completely fit or contradict your original needs. To make the right choice between the outstaffing agency or outstaffing company in Ukraine, you need to clearly assess your preferences and the number of outstaffing services that you need. If you need highly specialized assistance, it is much easier to contact an agency that provides you with remote web development. If your dedicated teams lack several specialists, you can involve the staff augmentation process for a certain period of time. Such employees may even work exclusively on your project, but they will not have to be hired on staff for several months.
If you need a complex type of services that you want to rent and chose between outstaffing vs outsourcing, it is better to contact a reliable outstaffing company with experience and proven dedicated teams.
Types of Outstaffing
The difference between outstaffing vs outsourcing is clear, let’s check out the existing types of outstaffing:
- Outstaffing in its first and main meaning;
- Relocation services;
- Relocation within one country or a city;
- Relocation to the foreign country.
Remote Web Development Cost
Remote web development allows workers to be more flexible, while employers save huge amounts of money hiring such workers. Even some of the most popular services and products have been outsourced for development.
We’ve made a research to check remote web development cost in the UK, the USA, Germany, Switzerland, Israel, Belgium, the Netherlands, Ukraine. Below you can find the rates of a software developer working in-house and of those who work for an outstaffing company.
| Country | Average annual salaries of software developers | Average salaries of remote software developers* |
| The UK | $42,500 | $55,300 |
| The USA | $69,000 | $90,000 |
| Germany | $57,000 | $74,000 |
| Israel | $70,100 | $91,100 |
| The Netherlands | $51,300 | $67,000 |
| Belgium | $43,000 | $56,000 |
| Ukraine | $27,500 | $35,800 |
*These are annual average software developer salaries with additional 30% to the rate added by outsourcing/outstaffing agency.
The highest cost of remote web development is in Israel and the USA. The UK and Belgium remote web development who work on outsourcing, nearshoring, offshoring, or outstaffing services have average annual salaries at the same level, while Ukrainian remote web development cost is the lowest.
However, these lower rates do not mean less quality or worse expertise. Ukrainian programmers proved to be one of the most talented, skilled and dedicated when it comes to dedicated teams outsourcing services.
According to the Global Sourcing Association, Ukraine was highly ranked as a top solution for outstaffing services in Eastern Europe by Outsourcing Journal. What is more, Ukraine is featured in top-10 countries based on the expertise of dedicated teams. 91.26 out of 100 points provide a clear depiction of the quality of work you can get by Ukrainian dedicated teams.
Top 10 Reasons to Hire Dedicated Teams for Remote Web Development
Need to extend one of your dedicated teams for a project or startup? And don’t have ideas where to start with and whether to use the outstaffing services for remote web development, check the benefits of hiring dedicated teams at outstaffing web development agency. Remote workers are available in each outstaffing company and you just need to choose the most suitable one:
- Remote work is the future. The number of remote web development workers has grown by 115% within the last 10 years.
- Satisfaction. Remote full-time workers have the highest rate of job satisfaction.
- Less stress. Employees who work remotely have a better balance in life.
- 11 days of life. A front end dedicated teams members gain back the equivalent of eleven days each year because they don’t have to go to the office every day.
- Flexibility. The working hours of developers are up to you. You can ask for full-time or part-time remote web development from your outstaffing company depending on your needs.
- Costs. If you compare local vs remote web development, the latter is much cheaper due to no tax and office-related expenses.
- Higher productivity. If you hire devs using outstaffing services, they might be more productive.
- Less staff turnaround. Remote workers tend to stay in one outstaffing agency for a longer time than those who work in an office.
- Talent pool. Hiring from outstaffing vs outsourcing allows businesses to access much larger developer talent pool as they are not limited to geography and location.
- More engagement. Outstaffing web development agency and workers report more engagement into the job than when they were working in-house.
Taking into account the whole list of benefits you get from dedicated teams, we advise you to consider hiring outstaffing company for remote web development.
If you are eager to find good dedicated teams for your project, it is important to be sure that it will be able to provide all the necessary outstaffing services for you at the highest quality possible. Checking a portfolio you will make sure you found a qualified outstaffing services provider. In search of a reliable outstaffing services contract sample, you can take a look at this source. But basically, any type of signed agreement will work fine with an experienced and credible employee.
Find out more about:
- How to find Filipino programmers for hire?
Why Choosing Mobilunity Software Outstaffing Services Is a Great Solution?
Mobilunity provides top-level on-demand dedicated teams and outstaffing services ensuring you with the best specialists in the needed fields. Let us know if there is an on-demand team that you need it to join your existing project or participate in all stages of the project development. We compared two models of staffing: outstaffing vs outsourcing and have a vast experience in product development and launch. We believe that by outstaffing our dedicated teams, you will reach remarkable results promptly.
Now you are on a way to find perfect outstaffing services for your marvelous project. Contact us for assistance!
Disclaimer: All salaries and prices mentioned within the article are approximate NET numbers based on the research done by our in-house Recruitment Team. Please use these numbers as a guide for comparison purposes only and feel free to use the contact form to inquire on the specific cost of the talent according to your vacancy requirements and chosen model of engagement.
