There could be many reasons for a company to outsource software development. The main ones are not having the required skills, having your own teams running full capacity, and wanting a quicker delivery with the latest technology.
Whatever the reasons, one must make an outsourcing strategy based on the service or product you require and decide between choosing freelancers and offshore staffing.
One must explore both options when considering getting work done from outside. In this article, we will contrast and compare the two options Fiverr and Offshore IT Staffing.
Fiverr is a freelancer platform whereas OIS is an offshore IT staffing company that delivers projects of software development to clients. One is a marketplace while the other is extended teamwork.
Let us view the main differences between the two platforms.
Offshore IT Staffing vs. Fiverr
1. Legal Guarantees
When you engage with a remote team outsourcing with OIS, it provides legal guarantees. They sign a binding contract mentioning all details of services & dealings as well as the penalties for failing those dealings and deadlines.
There are many other important factors mentioned, such as payment rates, development standards, and most importantly, the line and level of communication.
It creates faith and transparency, which is the most important factor while assigning a project to an outsider.
Fiverr’s Terms of Service does not mention or include any warranty with the purchase of a product or service. They are only providing a platform where buyers and sellers can meet each other and decide on a deal without any intervention from Fiverr.
Additionally, if you buy a service, you pay a certain fixed amount to Fiverr as a commission.
2. Pricing Model
Pricing is a major factor for some people, especially if they are outsourcing a small project. and the general perception is that Fiverr is cheap. Well, on the Fiverr platform the pricing begins from $5 per job(hence the name Fiverr).
However, if you think you get everything done cheaply, it is not so. Instead, you might end up paying more than what you pay to an offshore contract.
You see, the Fiverr pricing model is such that when you buy a service at the basic price, you are promised very basic service within a basic time frame.
If you want the work earlier, you pay extra. Any other add-ons are also charged extra. For example, for website creation, you would be charged extra for content, graphic designing and app integrations, etc. plus, if you have a tight timeline- another expenditure.
Let us see how OIS works. On hiring, their dedicated offshore development team charges you according to the number of people working on your project.
It could be one person too but there is always a supervisor overlooking the progress. It has the per-hour pricing model – paid monthly.
All the staffers work 8-hour shifts for five days a week. You can choose the particular skills and the number of people working on them too. it is a very profitable prospect.
Fiverr is a marketplace. When you have a project to execute, you have to dedicate a considerable amount of time to looking for the skills you need, hunting them down, and interviewing them to select the one that suits you.
Coming back to the website example. You need to know what kind of coding you need, find that programmer, and look for hosting options. You need a designer to design and a content writer to provide the content.
Consider the time you would spend on finding these 3 people and make them coordinate with each other and you.
OIS takes up your project in totality and arranges the skillset required for it. You do not have to go browsing for individual experts.
You would have a well-designed workable website, live with your domain and hosting. You need to know much about the required technology to get good work done. They would provide the best that suits you based on your business and budget.
In a freelance marketplace like Fiverr, you wouldn’t predict anything about quality unless you have worked with them before.
Fiverr is task-based, so the freelancers mostly provide what you ask for. Nothing more. If you are ignorant, you can easily be taken for a ride.
Quality of services is the bottom line while hiring an Offshore IT Team. OIS has high-quality standards and they believe in building customer relationships.
They are a company that has the best of talent in all segments of software development, on their payroll. Moreover, when you are dealing with a company rather than an individual, it makes a world of difference in the entire customer experience.
OIS has a benchmark, a sound reputation in the market, and a prestigious client base. When they are working for you, they have everything at stake.
Their business stands on quality, so they procure it and guarantee that your software development team has the required expertise and experience.
5. Monitoring the Development Process
The entire development process cycle is a very important aspect while working with your OIS offshore team. This team is like an extended arm.
It provides you with daily reports of the development work. They also upload the codes created in a repository where the clients can access them.
That way one not only knows what is going on but also communicates and coordinates to get the best detail and output. In short, you in complete control
On the other hand, Fiverr freelance developers are difficult to control and monitor at every step of your project. They have their own flexible working hours.
They do not promise to provide code at every stage or furnish any proof of how the development is shaping up. The communication is rather minimal because you are like an outsider to them.
The offshore teams become a part of your company and give you access to important details and updates.
As we discussed above, hiring freelancers from Fiverr is a totally different ballgame than setting up an offshore development team.
The first option may suit you for small tasks but does pose certain risks. Engaging with an offshore IT team from OIS is based more on quality, trust, expertise, and quality significant money savings, but poses some risks.
It might seem pricier to you, but it is much sager and qualitative than hiring a Fiverr freelancer.