Sometimes hiring people directly is not an option. It might be due to tight timelines, difficulty in finding the right people, or just willingness not to spend much on salaries. So, what’s best for you: Outstaffing or Outsourcing?
We’ve been playing around with subformats of these models for 20 years now, so without further adieu here’s a guide that will help you find the optimal model for you.
Outsourcing: Like Hiring a Pro Team to Handle Stuff
Outsourcing is when you hire another company to take care of a certain project or task. It's like getting an expert team to build a house based on your plans. A lot of small businesses like outsourcing because it allows them to get clear timelines and commitment to execution.
Pros of Outsourcing:
- If you choose right, you get to work with folks who are pros at what they do, from AI to blockchain.
- Your own team can focus on what they're best at, leaving the specialized stuff to the outsourcing partner.
- These companies usually have strong processes in place, which means less risk for you.
- Projects can move faster because you've got experts working on them.
- It's easier to scale up or down without the hassle of hiring or laying off people.
Cons of Outsourcing:
- Lack of direct control - being at the mercy of the service provider.
- Different work cultures and communication styles can lead to misunderstandings.
Outstaffing: Your Dream Team, Just Not In Your Office
Think of outstaffing like picking the best players from around the world to join your team. They wear your team colors and play for you, but technically, they're hired through another company. You’re still in control and can make sure they both have the skills and are a good fit for you. You can beef up your team without worrying about the usual hiring headaches like recruitment costs or office space.
Pros of Outstaffing:
- Get access to amazing tech talents from all over, no matter where you are.
- Save money since offshore talent is usually more affordable, and you're not dealing with the usual costs of hiring someone full-time.
- These folks blend into your team smoothly, joining in on your meetings and even your coffee breaks.
- It's easy to change your team size as needed, which is great for managing budgets or changing project needs.
Cons of Outstaffing:
- There might be a bit of a learning curve as everyone gets used to working together.
- Time differences can make communication a bit tricky.
- It might take some time for everyone to get used to the workflow and communication style.
A word of warning
Keep in mind that some companies operating in both of these markets aren’t very reliable. They don’t employ the talent in-house, lie about their experience, and put developers on more than one project at the same time.
At Smartexe, we've got this special thing called "Organic Outstaffing Teams." We pick developers who are not only skilled but also work well together. We put them in a separate office with your logo on the door and add a supervisor on our expanse to make sure everything goes smoothly.
Choosing what's best for you - outsourcing or outstaffing - depends on how much control you want, the complexity of your project, and whether you're looking for a short-term fix or a long-term partnership.
In the end, whether you go with outsourcing or outstaffing, it's all about what your project needs and what your goals are. Smartexe's approach with Organic Outstaffing Teams offers a fresh take, blending the best of both worlds to ensure you get a team that's not just skilled but also fully on board with your vision.
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