What’s the Difference Between Outsourcing and Using Temporary Workers?

Outsourcing and outstaffing are two common practices when it comes to staffing needs. What makes one better than the other?

When to Outsource Software Development

Software development outsourcing is commonly used when a “client” has a brilliant concept for a firm that requires the creation of a unique piece of software but lacks the means or skills to do it.

Clients of software development firms often like to remain removed from day-to-day operations, such as product implementation, architectural choices, recruiting, salary, benefits, vacation time, etc. The product itself is all the customer cares about, and they need it quickly. The sooner, the better. The customer then begins searching for software outstaffing services that can handle the whole development cycle and hand over the finished product with little oversight.

The Process of Outsourcing Software

The client’s end also involves some duty. Following the selection of an IT outsourcing provider, the customer should do the following: 

1. Determine which features are most important and include them in a product requirements document (PRD). 
2. Be able to pay for the vendor’s services in full and provide all relevant financial, scope, schedule, and quality information to the vendor.
3. Take part in frequent meetings with the vendor’s specialized development team to talk about broad changes and risks and work together to pinpoint the inescapable roadblocks.
4. Reap the benefits and provide suggestions for improving the service.

When it comes to software, what exactly will the outsourcing firm be in charge of? In point of fact, almost everything. What the IT outsourcing firm does:

1. Extends the Product Requirements Document (PRD) so that the team has a thorough understanding of the customer’s needs and expectations.
2. Recruit qualified individuals into open positions and oversee all personnel matters, including pay, benefits, and vacation time. 
3. Provide and oversee the whole workplace.
4. Help the group stay focused and on task so they can continue contributing to the client’s bottom line.
5. Manage the quality of outputs
6. Locate and eliminate obstacles, including the customer as needed.
7. Have the final product delivered.

The Benefits and Drawbacks of Outsourcing Software Development

There is no denying the benefits of outsourcing software development:

• There is no need to set up a whole department in-house, which frees up manpower for other purposes.
• Gaining access to a bigger pool of experts beyond just in-house teams, since software outsourcing businesses often maintain extensive databases of technical expertise and tried-and-true recruitment methods.  
• Hiring new members, processing payroll, and organizing team outings are all tasks that have already been handled for you.
• Excellent cost-effectiveness. Hiring a seasoned engineer in Eastern Europe may save you up to half the cost of bringing one on full-time in the United States or Western Europe.

There are typically three main causes of software outsourcing project failures.

• Working with non-English speakers might cause translation and cultural issues. Selecting an outsourced partner with fluent English speakers might reduce them. Expert project management and regular updates may assist overcome time zone issues. 
• Inability to influence development, such as when the client puts entire responsibility on the development team without updating them or when the vendor’s process lacks built-in visibility. For a relationship to work, both parties must commit.
• Poor vendor selection may delay and lower quality. Outsourcing software development is risky. Read case studies, contact references, make clear expectations, and address security, milestones, and scope when researching a vendor.