Extended Teams vs Outstaffing
Each year potential clients contact us at Best4u International and ask us:
“What is the difference between your model (EXTENDED TEAMS) and OUTSTAFFING?”
This is a very good question. We can certainly understand the need to know the difference, as it is an individual choice each business owner should decide on in order to find the optimal solution for scaling up their company.
At Best4u International, we are only focused on helping businesses extend their teams, but the truth of the matter is, an extended team might not be the best fit for you. In fact, outstaffing might be the better option.
This article is going to explain the pros and cons of each type of business model in an honest and transparent manner. This way, by the end, you’ll be able to identify which is the best fit for your company.
Difference between the two
Let’s start with an explanation of what the difference between software outstaffing and extended team model is.
OUTSTAFFING is a type of remote employment when a hired person performs all the job responsibilities for a company (client) being officially employed by another company (outstsaffing agency). The latter one acts as an employer, thus is responsible for salaries, bonuses, equipment granted to a worker, while a client company provides a worker with tasks and assignments.
EXTENDED TEAM is a team with direct and tight relationship with the client and the in-house development team. Both parties are working in close cooperation with each other, sharing the same core values and the same vision of the company. In this way, the in-house team is augmented with the lacking skills or experience, and an overall cohesion provides a highly effective collaboration.
- No need to take care of choosing developers: a software outstaffing company builds a development team on their own. It means that if a customer has preferences, they can always influence on the team composition.
- Immediate replacement: if the developer gets sick, or suddenly goes on vacation, he/she is immediately replaced the same day by another developer working in the outstaffing company.
- No management headache: you don’t have to worry about team management. The outstaffing company will do it for you.
- No employees: your selected outstaffing firm acts as the employer of your remote development team. This means that you don’t need to have any employees, legally speaking.
- Probable worse quality of development: Sometimes it is possible to get a much worse quality of code if outstaffing developers. This may occur because the team is not completely attached to the company they work for, aims only to accomplish the task and is not interested in the subsequent success of the company.
- Higher costs/less transparency: The hourly rates and overall expenditures tend to be higher and sometimes might include hidden costs or expenses.
- Full control over the development process: if you have an extended team model, you can manage the development process directly. You establish the tasks your team is working on, schedule those tasks and operate all the development activities.
- Friendly relations between the in-house and the extended teams: all team members know they are in the same boat and have the same goal – the goal of your company. This means they start to interact more with each other, to share what is important for them, and a shared vision on core mission is a key to success.
- Easily track the results: you have direct access to the executed work and assess the work of your extended team.
- Choose the members of your team: choosing who to hire is beneficial for your company since you can hand-pick a suitable team member who will develop your projects/product.
- Transparency in costs: The payment is composed of members’ salaries, which you can decide based on your budget + management fee that includes administrative costs, etc.;
- Responsibility for the team: once you have selected a person who meets the technical requirements you are looking for and also soft skills, you should treat her at the same level as your in-house members, continuously communicate with her and inform about the direction/vision and changes happening in your organization.
- Not well-suited for short-term projects
Moreover, Best4u International goes to the next level and helps businesses not only find and recruit developers, but also mirror your brand identity inside the office in Moldova. It’s like having your own development center in Moldova: your team works from Best4u office, but shares the same values and vision as your company does.
How To Decide Which Team Extension Model Is Right For You?
When choosing the right model for your project, we highly recommend considering your project goals and specificities. If you have a short-term project, or do not want to attach, communicate or participate in the life of the remote team then you should opt for outstaffing.
Unlike outstaffing teams, extended ones are not dissolved after the project is completed. They are aimed at long-term collaboration practices.They want as much as you to grow your company and help you improve work processes using best practices. They are motivated team players who don’t feel the need to disperse their attention to any side projects. If you would like to invest some time and effort in educating a remote team, creating a close connection between the in-house and the remote team, ensuring them regular trips for the exchange of experience; if your intention is not to have two teams, but a whole, then the solution is the extended team.