Outsourcing is a very effective and popular hiring process in today’s digital world. In these competitive tech industries, finding suitable candidates or IT professionals is not an easy job as qualified candidates are highly sought after in a limited talent pool. So most companies worldwide are adopting these hiring models for their projects. Both options are very effective, organizations just need to choose the right model depending on their requirements. 

Today, CloudVandana will discuss the two models and their basic differences.


It is a strategic method of distributing some work functions to another person or company instead of fulfilling them in-house. Businesses adopt this model to cut costs and have the assistance of a qualified and experienced team and focus on the core aspects of the company’s development. Depending on the knowledge, resources, and priorities, organizations can decide the potential areas and in what form they can outsource. 

Organizations can sign a contract for comprehensive service by an external service provider and select the areas. There are some common outsourcing types, personal, IT, manufacturer, and project outsourcing are examples. Organizations can select the best-suited one based on their requirements. If they are confused about the suitable model, a partner organization can always suggest the best solution. 

It delegates projects to a third-party company with the required resources, qualified team, and equipment. The primary task of outsourcing is the ability to use all resources to full scale and take directions to introduce or develop the new focal business goals. 


Outstaffing is a type of remote employment where a company is responsible for all, or nearly all, of an Outstaffed employee’s time. So, rather than a working project to project, an Outstaffing team member would be dedicated to one client. There are two outstaffing models for paying for and managing the team. IT industries face various challenges in dealing with the identification of industry needs and searching for the workforce to move most of the companies forward. Staffing providers should consider customer needs, including the number of experts, and move accordingly to fulfill the requirement with matching IT personnel. 

Let’s look at the three key benefits of each model

Outsourcing Benefits

1. Micromanagement Is Not Needed

Organizations do not need to micromanage the outsourced team as the Staffing firm is responsible for quality assurance and ensuring the service fits the project parameters. So there is no daily management output required, though the outsourced team always provides a detailed progress report to the organization. 

2. Skilled Resources

Companies can be assured about the developers’ skillset as they are selected as per the unique requirements of the organization. So organizations can expect enhanced productivity.

3. A broader variety of resources

In this model, companies can experience a broader range of resources and use their capabilities to enhance their projects which is not possible with in-house resources.

There are numerous benefits of this model that organizations can experience hiring this model. 

Outstaffing Benefits

1. Flexible Solution

In this model, the staff is dedicated to the organization and the IT requirements, while the vendor handles their payroll. 

2. Full Access And Control 

Organizations can fully control the team, and they have full access to the day-to-day development process. 

3. Lower Cost

This is a cost-effective hiring model as the hourly rate of the Outstaffing team members is usually lower. The savings can be significant if the organization is up for the extra work. 

The Difference

Both terms include remote work, yet outstaffing stands for hiring experienced professionals from other firms to work on the project under the control of the business owner, and outsourcing means passing the software designing process to a third-party firm.

Many companies choose remote software development teams due to their price of service and the quality of the product delivery. 

Most of the time, when deciding between the two models, Outsourcing becomes the winner. It can lead the competition if the organization has considerable IT needs, whether to build a new product or introduce new services. 

An IT vendor like CloudVandana can assist an organization by suggesting the best solution depending on their size and requirements. 

Are you still confused about which model will suit your organization the best? Please schedule a free consultation call with CloudVandana and hire the best team of remote developers for your projects. Call us now. 

Request a Free Consultation