IT Outstaff & IT Outsource: terminology and reasoning of choice
There has been said a lot about IT solutions and project delivery models. But IT outsourcing and IT outstaffing strategies, and their advantages and disadvantages are still undiscovered. Before digging into the pros and cons of outsourcing/outstaffing project management strategies, let’s briefly remind ourselves key points.
IT Outstaff. You will not find this word in any scientific journal, people rather use “contracting” within the business world. Anyway, IT-related specialists practice “outstaffing” and imply “renting” a third party which is responsible for the quality of a certain project. Outstaffing traditionally understood by people as a business model in which parties sign a long-term contract. Under this
IT Outsource. Experts determine outsourcing as the model in which a certain company hires IT team (e.g. DataMix) to deliver the full project. As you may have already understood, under such circumstances, the IT team is almost completely independent and totally responsible for the outcome. Outsourcing contracts could be both foreign and domestic, with offshoring and nearshoring options. Typically, all forms of the outsourced model depend on the core competencies of a company and client needs. In a nutshell, it can be summarized as follows: outsourcing is exchanging of core competencies under the responsibility of both parties.
Justification of choice: how to deal with software development companies?
Primarily companies want to outsource if they face huge financial expenses on taxes or overwhelming government regulations. Undeniably, there is also a need for professional foreign IT outsourcing companies which deliver highest-quality outcomes and ready to be responsible for managing the whole project from A to Z. In summary, if you would like to save costs, time, energy, and reduce operational overwhelming on your company, then outsourcing is the best choice!
On the contrary, outstaffing is suitable for companies that have qualified project managers and a detailed development plan. In such a way you might need a specific person or support under a certain process to be mentored, so your choice must be rather outstaff one.
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- IT Outstaff & IT Outsource: terminology and reasoning of choice