Outsourcing Vs Outstaffing: Description and Сomparison.

One of the key advantages of outsourcing a team is the ability to rapidly and reliably develop the required product. This means that the client doesn't have to deal with the hassle of hiring, spending significant time on recruitment, and waiting for several months to assemble a team. Moreover, there's no guarantee that an in-house team would possess the necessary expertise to handle the task effectively. In contrast, a professional outsourced team brings experience in developing products specific to the client's needs or within their niche. They may have experience in multiple similar projects, enabling them to commence work immediately without encountering errors or difficulties in the product, as they already possess the know-how to handle them proficiently.

Another clear advantage is the cost-effectiveness of hiring in a country where developer salaries are lower. This means that the overall expenses can be reduced or the budget can be allocated more efficiently, even if the salary remains the same. Outsourcing teams already possess expertise in the specific niche where the client is building its product, so they won't waste time studying intricate details. As a result, the client avoids paying for mistakes that internal developers typically make when unfamiliar with a particular niche. While this may not always be apparent, it can actually save several months' worth of work.

The outsourcing company is responsible for the final product. The service provider assumes full control over the quality of the code and the project as a whole. For this purpose, a well-established project management is functioning in its staff.

You don't have to go through the whole process. You get a ready-made solution where all management is left to the service provider from communication to execution.

The issue of hiring personnel is completely removed. When a company outsources, human resources issues are handled by the supplier. You don't hire employees, you don't pay taxes for them, and you don't collect salaries. You voice the needs, and the outsourcing company gathers the necessary number of professionals with the appropriate qualifications for implementation.

Savings on office equipment. There is no need to buy additional equipment, rent space or buy the software.In general, all this is already included in the cost of services and is more profitable.

Adaptation to needs. The outsourcing company responds quickly to emerging requests. For instance, your business needs to accomplish a small task that just takes a few hours. The supplier can provide a specialist without his/her subsequent involvement in the project.

The client's complete dependence on the development team emphasizes the importance of carefully selecting a team with a proven track record and positive reviews. It is crucial to exercise caution and make wise choices when it comes to team selection, as there is always a potential risk of hiring an incompatible team, which may only become apparent after some time and the loss of both time and resources. Therefore, it is advisable to select teams based on reputable reviews from platforms such as Upwork, Clutch, Goodfirms, and DesignRush to reduce this risk.

The client's complete dependence on the development team emphasizes the importance of carefully selecting a team with a proven track record and positive reviews. It is crucial to exercise caution and make wise choices when it comes to team selection, as there is always a potential risk of making the wrong decision.

For smaller projects with a duration of up to a month, it may not be practical to seek out teams, as it can often result in higher costs without the client experiencing substantial benefits from collaborating with a team.

In certain cases, communication may only occur through the Project Manager, and the developers may not be fluent in the client's language. Consequently, there can be potential losses in translation. It is crucial for companies to prioritize effective communication to ensure high-quality outcomes.

The best talents. Accordingly, you receive proven specialists who fully meet the company’s needs. You do not waste time searching and checking. All this is undertaken by the IT outstaffer.

Cost reduction. All costs related to taxes and insurance are paid by the staffing provider. It's important to mention that there is no requirement to provide compensation for termination, which amounts to a substantial sum. Additionally, there is no need to cover expenses for equipment and other associated costs. You, as a customer, get a ready-made solution in the form of dedicated developers.

The flexibility of personnel selection. You completely free yourself from issues related to personnel turnover, and you can also flexibly manage the size of the team. If suddenly you need to increase or decrease the number of employees, it will not take long.

Reduced implementation time.

Interruptions in communication. When working remotely, there is a risk of poor integration into the regular team. However, this can be avoided if you properly prepare for the adaptation process. Also, if the employees are multinational, you may face misunderstandings related to cultural differences. Nevertheless, this aspect is applicable to remote work in general. Thus, following the COVID era, this drawback has become less prominent for numerous companies and is only relevant to those whose team exclusively operates within a physical office space.

The customer is responsible for the quality of the product. Management is carried out by employees on the client's side. This means that the responsibility for the final result lies with the customer.

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Outstaffing model. At Peiko, we offer the option of hiring dedicated programmers on an outstaffing basis, whether it's full-time, part-time, or on an hourly arrangement. Our skilled developers are committed to long-term engagements and can be paid either on an hourly or monthly basis. We prioritize open communication and take care of all technical and salary-related matters. If needed, we are also willing to sign a non-disclosure agreement (NDA) to ensure transparency and confidentiality. Your main responsibility will be to maintain regular communication with our programmers and ensure timely payment of their monthly salaries.

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By choosing Peiko for your development outsourcing needs, you gain enhanced flexibility and numerous avenues to progress your future project. Moreover, outsourcing not only helps in reducing costs but also aligns with your project requirements and budget. It expedites the delivery cycle, enabling you to identify the suitable company and convey your specifications within fixed timeframes. This streamlined process ensures efficient progress and prompt results.