What’s the Difference between Outsourcing and Outstaffing

Home Outsourcing What’s the Difference between Outsourcing and Outstaffing

Some companies can’t afford to create a specific in-house department. On the other hand, many companies can’t establish a needed department due to various reason such as lack of talent in the city or even in the country. Businesses and companies worldwide no matter the industry must include several functions in their daily operations required by the shifts in market trends. Those operations can be either essential to market positions or business running strategies.
Hence, companies decide to outsource or outstaff or even both.

The difference between Outsourcing and Outstaffing

Almost every company goes through the phase when it has to hire one or more experts out from the company or country in order to meet goals or sudden requirements. Outsourcing and outstaffing are both solutions implemented in these cases. Both consists of subcontracting services to an outside provider, partner or company to run one or more functions. One of the reasons why companies go for outstaffing is because they can’t handle specific tasks internally.

Both options offer reduced costs and fewer worries.

Outstaffing and Outsourcing companies are responsible for the wages, benefits, and other expenses created while running the operations for the seller/provider company.
When outstaffing, the provider only delivers tasks.

On the other hand, outsourcing is consists of delegating tasks that can be handled by the in-house team, but they would result in higher costs and slow down the progress of other key operations.

Outstaffing can be explained as an extension of a company. In this case, the outstaffing company and the provider of the service work closely together despite physical distances. Cooperation is strong and based on a daily basis. In simple words, it means to hire a remote team that one can’t find in-house.

In the meantime, outsourcing companies take complete responsibility for the functions or operations delegated by the seller. They run services or deliver a complete project based on defined deadlines. The seller has little to no control on the outsourced projects-functions.

Another difference can be related to the type of the outsourced/outstaffed function.

Usually, the companies that decide to outsource their software development are not companies that rely completely on IT. They outsource functions that are required by the market or would help to better handle other more important functions by the internal team.
In the meantime, a company that opts for outstaffing software development might rely heavily on IT. These companies require access to talent or technology that is not available in the local or domestic market.

Both options have advantages and disadvantages. It all depends on the need of the company. Yet, if you are looking for a potential market that offers both great value and reasonable costs for outsourcing and outstaffing, Albania is a great option.