Software Development: Outsourcing vs Outstaffing Difference

We find the best talent from around the world in a matter of days, and take care of all expenses related to hiring, onboarding, payroll and management. We cover all of your local accounting, legal and HR tasks so you don’t need to be an expert in foreign legislation. Our hiring processes comply with local laws and tax regulations. Stop paying contractors by hand and calculating complex local taxes on employee payroll. Our employees get the highest score on the review of employees of these companies. It turns out that a specialist with an initial rate of 1,500 rubles per hour, taking into account all other expenses, will cost at least 2,800 rubles per hour.

I’ve found that most of the good shops specialize in a vertical and specialize in a language, and they have plenty of work from referrals — so they don’t need to spam anyone. As a negotiating tactic, you can also offer to prepay their wages quarterly or every six months. Tell us about your task and deadlines, and in return we will provide CVs of suitable candidates with recommendations. You also need to pay 28 vacation days a year, as well as purchase working machinery and equipment for the employee. Work is almost always done remotely, and even in our shared outstaff office there is usually a relaxed atmosphere. Since the employee does not work for you, you do not need to form his personal file, make out various certificates, sick leave, take it into account when submitting statistical reports and so on.

An Insider’s Guide To Outsourcing And Outstaffing Software Development

We deal with salaries, equipment, contributions – you pay only for our work to attract personnel. Now that you know the outsourcing and outstaffing difference in software development, and their pros and cons, let’s discuss when they will be most beneficial for your company. But what if you have a tech team that misses a specialist with certain skills? Let’s see its pros and cons and what difference it may bring to your business. Contrary to an outsourced team, which is usually selected by the outsourcing agency itself, outstaffing is mainly the clients’ choice.

Outstaff Java Developer

You pay the agency for services provided, while it pays its staff the salary and bonuses. In outsourcing, the client delegates full or partial product development to the outsourcing vendor’s team. In this case, the outsourcing company is responsible for hardware, materials, and other resources needed to complete the project and provide the clients with the set deliverables. Usually, this business model presupposes low control from the client’s side unless specified otherwise. However, there is a reason for the existence of outstaff services.

Java Outstaffing

We chose GoDigital because they offered reasonable terms and brought in quality employees. What I like most about their work is comfortable communication and value for money, as well as a focus on results, not talk. I rate GoDigital’s work 4 out of 5; I choose 4 so that there is room to grow and bring more intelligent specialists to us.

  • That’s why at SHORE teams we’ve made it our mission to help businesses get on-demand access to a team of fully trained developers within 4-8 weeks via IT Outstaffing.
  • We form a flexible pipeline that adapts to the needs of the individual client to deliver a result that allows you to achieve all your business goals.
  • For example, a business startup may have a concept of a product that the healthcare providers might benefit from.
  • In 2017, the Kotlin programming language emerged, and after a while, it became the main Android development language.
  • As a matter of fact, they can bring some influential benefits to your software project.
  • At the same time, an “outstaff team” term may be a confusing one.

As a result, we were able to launch the project at the time we needed and in the volumes originally agreed with the internal customer. You can augment your tech team by hiring a developer from an outstaffing agency and have a full team assembled to start your project. This is considered to be the most tax-efficient model in most countries. The trick is that although you get a developer who works for you, he is officially employed in another company, more often an outstaffing agency.

Feedback from our clients

Some of them learn a lot of new skills and remain working in the field as real experts. These are the ones that need to be working on your serious projects. Now we’re ready to explain the difference between software development outsourcing vs staff augmentation in more detail. Outstaff development and outsourcing are effective methods for software business owners.

Outstaff Java Developer

Voluntary self-education is one of the leading indicators I’ve seen in how much value a developer will bring to our projects over the long run. Java developers worldwide use Java for many purposes, including web development. For example, more and more programmers began to use this coding language to create games, including gaming consoles. Find out more about our client’s experience of working with Ficus Technologies and its results for their business.


This is similar to freelancing, but in this case, the employee works on a regular basis. The simplest and, by far, the cheapest method to hire a Java developer is via freelance. Many specialists of all kinds start their careers from here.

From a legal perspective, a specialist has labor relations with an outstaffing company but not with a customer company. While the outstaffing company provides services to a customer according to the contract, a customer company pays for them. Outsourcing and staff augmentation in software development (outstaffing) mean different approaches to who and how will do a particular tech task. And before we explain this any further, we need to provide a few definitions of terms we’ll use throughout the article. Understanding nuances of the regions where you hire and following some best practices should save you a lot of time and money — and maybe some midnight migraines as well.

Some features of hiring a Node.js developer under Outstaff

Finding and training skilled talent can be a great hassle and cost a lot of time and resources. That’s why at SHORE teams we’ve made it our mission to help businesses get on-demand access how to hire a java developer to a team of fully trained developers within 4-8 weeks via IT Outstaffing. Our Node Outstaff developers are responsible for scripting the logic of server-side web apps in JavaScript code.

Outstaff Java Developer

The development partner acts as an employer and is therefore responsible for wages, bonuses, and equipment given to an employee. You as the customer provide the developer or development team with tasks and assignments. I’ve seen some recruiters start to offer research and development (R&D) center services to clients to compete with outsourcers. This new trend of not only sourcing the developers but operating the office and administrative functions on behalf of the client have additional fees.

IT outstaffing

IT outstaffing allows you to finish your IT projects faster by expanding your development capacity. It allows you to save a lot of time and costs while it still provides you with full control over the development process. You’ll have access to a team of skilled developers that are already trained to do the tasks you need them to do. This allows you to scale fast without having to find and train talent yourself. With outstaffing you’ll also benefit from lower rates compared to in-house hiring, local agencies, and outsourcing.