Externalization vs. Outsourcing

Outsourcing
Outsourcing vs. Externalization

Often in the business realm, the terms outsourcing and externalization are used interchangeably, which can lead to confusion. At QualitApps, we aim to clarify these differences to facilitate a better understanding and selection of services that truly fit your needs.

What is Externalization?

Externalization is a comprehensive process involving subcontracting an entire project to another company. At QualitApps, when taking on an external project, we create a complete team with everything necessary: from Project Managers and Analysts to FrontEnd/BackEnd developers and Quality Assurance (QA) engineers. We handle every aspect, whether it’s a turnkey project or distributed by phases. We use our own servers and DevOps tools, ensuring a controlled and efficient environment for development and testing.

Defining Outsourcing

Unlike externalization, outsourcing focuses on the external hiring of specific resources. Here, the client uses our designers, programmers, or engineers for their projects or maintenance. These professionals are directly managed by the client, integrating into their existing teams and utilizing their methodologies, DevOps tools, servers, and GIT code repositories. Essentially, it’s a complement to their team rather than complete externalization.

Key Differences

While in externalization, QualitApps assumes total responsibility for the project, in outsourcing, the client maintains direct control over the provided specific resources. In externalization, we use our infrastructure and tools, whereas in outsourcing, the client’s resources are used, adapting to their systems and processes.

Supervision and Management in Outsourcing with QualitApps

At QualitApps, we not only provide resources in the outsourcing model; we also offer supervision and ongoing support. Our tech leads review the code, provide technical support, and assist in research and development activities. We use advanced tools to ensure that contracted hours are met, and our account managers ensure smooth and efficient communication between the client and our resources, ensuring the resolution of any issues that may arise.

At QualitApps, although we recognize the value of both externalization and outsourcing, we have observed a clear trend towards success and satisfaction in outsourcing. Our experience shows that this option often aligns better with the expectations and needs of our clients, offering more effective results and closer collaboration.