New IRS R&E Rules Risk Stifling Software Innovation for Startups

It entails contracting with outside businesses to save money and access specialized expertise. However, it can be challenging if you are still unfamiliar with the process. At TurnKey, we are committed to ensuring that you do not go through the same outstaffing mistakes and frustrations as we did when we were running product development at our own software companies. With outsourcing, the vendor is the one who closely monitors and supervises the development team’s operations. They report back to the client any issues that arise, but the vendor is fully answerable for all aspects of the management process.

software developement outstaffing

We are one of the fastest-growing IT outstaffing companies in the world and we have over 150 development agencies at our disposal. Together with our partners we have access to over 20,000 developers that can cover almost any technology stack. We know what to expect and make sure it meets your expectations as well. 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 to a team of fully trained developers within 4-8 weeks via IT Outstaffing. The process of hiring an outstaffed specialist is generally quite similar to hiring a new in-house developer.


Software development outstaffing allows businesses to tap into a global talent pool of skilled developers. The process of choosing which model is best to get the extra help you need involves weighing the trade-off between maintaining a degree of control and handing that responsibility over to the servicing company. More control on your end means less responsibility on theirs and vice-versa. If your vendor has proven experience in software development and remote team management, either of the models should be on the table. The clients who value full control over the team’s activities and have the resources to manage developers themselves often prefer outstaffing.

The software framework that powers popular video games like Among Us and Pokémon Go is getting an overhaul to its pricing model. Game developers are furious, and say the change could have a devastating impact on the entire video game industry. Generative AI and coding assistants can augment and speed up activities from design to testing across the software development life cycle. Check out the article to learn more about each of these models, and figure out which one to choose.


You may not get quick access to the required experts from your region. The straightforward solution is to either hand over your project to an external offshore team or to enhance your existing capabilities (if you have your own development team) by adding external members. Hiring developers from an outstaffing vendor is a good choice in this scenario. The main company will send those tasks and payments for a certain number of hours per month and get the job done. If the option of delegating software project responsibility is not your cup of tea, we suggest using outstaffing as your preferred collaboration model.

You can compare this model to hiring a separate team of specialists with the skills and knowledge to complete the project. But you don’t have to pay taxes for hiring them or offering the benefits of being a full-time employer. That burden is still on the shoulders of the outstaffing provider.

API Development & Integration

Basically you hire your own remote employees who are a part of your in-house team. This remote software development team can be managed either by your in-house people or you can have remote managers as well. As mentioned earlier, hiring an outsourcing company is cheaper than hiring and maintaining an in-house team. However, as with outstaffing (we’re gonna talk about it later), some outsourcing companies may charge additional (unexpected) fees software developement outstaffing for project management, administrative support, etc. If you want to be sure that there are no hidden costs about outsourcing software development, we’d recommend that you discuss them with the outsourcing company at the very beginning of your collaboration. Outsourcing the development of a project means providing a brief and guidelines for the desired outcome, while the outsourcing team takes care of code quality and product development.

software developement outstaffing

By 2027, 70% of professional developers will use AI-powered coding tools, up from less than 10% today. Are you going to hire a specialist to just fire them when the project is completed? Otherwise, you would have to explain the reason for firing a good specialist and that doesn’t sound like a good idea. A lot of people believe that offshoring is only for short-term tasks.

What is a dedicated team?

The article is dedicated to explaining all the details related to both mentioned IT models. In other cases, it is better to ask the company representatives directly about possible technological proposals. Clearly, if the company has no developers, familiar with your tech stack – it is not your choice.

  • This not only increases the complexity of tax compliance, and its corresponding cost, but also demands additional resources and training.
  • Hiring from Asia and India offers lower cost for outsourcing software development.
  • Also, ask the references how the outsourcer accommodated change requests.
  • While in-house teams are limited by the number of available resources, DDTs provide access to a larger talent pool and can quickly scale up or down based on project requirements.

There are shorter lines of communication because you can directly communicate with them. You’ll be able to instruct the team to work on multiple projects simultaneously (depending on the agreements made). From assigning tasks to monitoring the whole process, a project’s management can be found difficult by those who have never done or have not enough time to do that. On the other hand, there is a possibility that the outstaffing team will offer you its project manager with whom you will communicate and articulate all project requirements.

Pros of Software Outsourcing

You can have regular sync calls with the project manager of the outsourced development team, but you won’t be deeply involved in the development process. Finally, they decide on hiring the service an offshore software development agency and get confused with a bunch of terms like software outsourcing, outstaffing, dedicated team, and others. Outsourcing software development projects to third-party companies or hiring remote developers may lead to a lack of control and communication between the in-house team and outsourced team members. This can result in misunderstandings, mistakes, and delays that can ultimately affect the project’s success. Waverley Software adjusts the development process to suit the client’s needs, and our Engineering Manager manages the team to deliver results according to the business objectives.

software developement outstaffing

I believe the key to creating greater technical knowledge is simplifying software development into concepts everyone can understand. When I’m not writing, I’m either playing video games or exploring the world through travel. Alongside these advantages, you should also compare the disadvantages of outsourcing product development. Now let’s see how these compare to outstaffing to see the difference.

How to Hire Offshore Software Developers

The main difference between outsourcing and outstaffing is that outsourcing refers to the entire project support, while outstaffing provides hiring and maintenance of experts. The type of offshore development highly depends on your project needs. If your team is having trouble solving a couple of tasks, then outstaffing is preferable. Also, it is the best choice when planning to build a project from scratch. The gap between the demand and supply of software professionals is a reality.

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