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Here’s why Virtual Employee Model is safer than Project Outsourcing

March 23, 2021 / 8 min read / by Team VE

Here’s why Virtual Employee Model is safer than Project Outsourcing

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TL;DR

The Virtual Employee (VE) model keeps control, costs, and continuity in your hands, unlike project outsourcing where vendors manage the process and risks increase. You lead, decide, and scale at your pace while maintaining quality and transparency throughout.

Key Takeaways

  • Control stays with you: The Virtual Employee model gives clients decision-making power from start to finish.
  • Reduced project risk: Continuous oversight prevents quality drift, hidden costs, and delivery delays.
  • Better scalability: You can add, modify, or maintain teams and projects anytime.

Business means you either step forward into growth or you simply step back in the cocoon of your safety. Those who dared to dream had new avenues in front of them with outsourcing being one of them and big tech is the biggest example. The juggernaut simply refuses to stop! It won’t be far from the truth if we say that outsourcing helped these businesses not only save money and time but also got them a large pool of talented resources, helping them became bigger and better. Global research backs this evolution.

According to the Deloitte Global Outsourcing Survey 2024, over 60% of companies now see outsourcing as a long-term value strategy rather than a short-term cost move. The shift is from savings to scalability.

[Source: Deloitte Global Outsourcing Survey 2024]

A separate study by The Hackett Group, found that businesses aligning outsourcing with long-term goals achieve up to 37 percent higher efficiency gains than those focused only on cost.

[Source: The Hackett Group]

Similarly, Outsourcing Center’s 2024 report, highlights that guided outsourcing models, where vendors work as extensions of in-house teams consistently, outperform project-based engagements on quality and continuity.

[Source: Outsourcing Center’s 2024]

Why? Because while this business process eliminates production and labour costs, it also means that quality has to be top notch. After all, quality trumps everything. Moreover, there are two main models of this business process – one that includes project outsourcing and the one that works on the Virtual Employees model, and depending on the business model, one can make the most out of it.

But what is business, if not choices?

And what if we tell you that Virtual Employee model is safer than Project Outsourcing? What if tell you that the former eliminates most risks project outsourcing is fraught with? But how?

It is the choices that define our successes and failures and they are for the better when we make an informed choice.

Here’s why hiring Virtual Employees is much safer than getting your project outsourced:

Serious business, serious decisions

In order to understand that, first let us take a look at the characteristics of both types of outsourcing models and how they work.

Comparison Table: Project Outsourcing vs Virtual Employee Model

   Parameter     Project Outsourcing   Virtual Employee Model
 Control  Vendor-controlled   Client-controlled
 Cost Transparency   Variable; prone to hidden costs   Fixed and predictable
 Communication   Periodic updates   Real-time access
 Flexibility   Low   High—scale up or down anytime
 Knowledge Transfer  One-time   Continuous
 Risk High (vendor dependence)   Low (client oversight)
 Long-term Value Ends with project   Builds ongoing capability

When you outsource a project, the very first step is telling the vendor what the project is about and the vendor works on the “how” of the project within a given time. This marks the end of the project outsourcing.

In the project management outsourcing business model, you are essentially handing over the project to the vendor to be completed. This enables the project outsourcing company to have complete control over the management of the project. While in some projects, this hassle is just not worth it, in some, it has its risks.

However, this is turned on its head when you hire virtual employee, the outsourcing company does not manage your project and you retain the right to make all the calls – from start to finish.

Essentially, the virtual staff outsourcing is a blend of both – the outsourcing model and the offshoring model. This biggest benefit of the employing virtual employee services is that you are provided with all the resource solutions until your project is complete. And then it is always a plus when the outsourcing company is offshore which means the client organization will save big on the money.

When you are outsourcing project work, it means that you are not with them overseeing the project and deviation from the set path may occur. For example, there is a risk of your project being jeopardized when the company is unable to back their big talk and deliver. There is also a risk of “unforeseeable costs” or “overshooting project budgets” where your project may very well be held on “ransom” by the third-party. This makes you lose not only money but your time-sensitive project.

However, in the offshoring model, all the above mentioned powers remain with you. Moreover, Virtual Employee model also reduces the possibility of ‘disagreement’.

You can go ahead and also decide to have one of more resources or build a whole team to work on your project. You also get to decide the number of hours you want them to work for.

Translate the knowledge transfer

Things are always easier said than done. And this becomes a big problem with knowledge transfer. When you share knowledge on a project, there is always a possibility that the concept and vision behind the project may simply get lost in translation. Explicit knowledge remains universal and is understood to have an absolute meaning, tacit knowledge, on the other hand, can be very tricky for it needs experience. Instructions, after all, depend on the understanding of the receiver for they decide what and how to do it. So, you may have shared the knowledge but has it been successfully transferred?

This means that when you are project outsourcing with complex set of instructions that involve both explicit and tacit knowledge, the end result won’t be completely error-free and your project ends up taking the different path from your vision. The result – your project you expected will deviate from what you visualized.

In the Virtual Employee model, however, an immediate feedback on it would correct the course but if you are working with project management outsourcing companies, this important step would go amiss as your project would stay with the vendor until its completion.

Quick Diagnostic Checklist

  • Is the Virtual Employee model right for you?
  • You’ve faced overruns or poor delivery with project outsourcing.
  • You need long-term control over how your project is managed.
  • You prefer to pick, train, and monitor your own offshore team.
  • You want scalable, risk-free operations with transparency.

If you tick 2 or more, the Virtual Employee model fits your business goals.

Additions, Modifications, Maintenance and Upgrades

Unlike project outsourcing, you won’t need to wait for the project work to be completed to assess where you need all the above. As explained above, your decisions are everything when it comes to the offshoring model and it holds true for any additions, modifications, maintenance or upgrades you want at any stage of the project – during and after.

For example, halfway into the project, you can add more resources and scale your project and you can reduce that in the same vein too. After the project is done, you can choose to modify it and work on the maintenance and upgrades your project may need later on.

To put it succinctly, Virtual Employee outsourcing reduces business risks linked to control of the project, resource management, knowledge transfer and health of the project long after it done and over with. Virtual Employee is safer than project outsourcing as virtual staff outsourcing corrects the risks which are mostly posed in the latter.

FAQs (Quick Answers)

Q: How does the Virtual Employee model differ from project outsourcing?

A: In project outsourcing, the vendor manages the entire project and controls delivery. In the Virtual Employee model, you manage the team directly, keeping full control of quality, timelines, and costs.

Q: Can small businesses benefit from the Virtual Employee model?

A: Yes. SMEs use it to scale affordably while maintaining the same control as local teams. It’s designed for flexibility and long-term savings.

Q: What happens if I want to change or scale my team mid-project?

A: You can add or remove resources anytime without contract penalties. This makes scaling faster and safer than traditional outsourcing.

Q: How does VE ensure data security?

A: VE follows ISO 27001 standards, NDA-backed operations, and restricted network access for every client team.

Q: How do I start?

A: Begin with a free consultation to define your requirements and review candidate profiles. Once you approve, your Virtual Employee, onboarding takes just a few days.

Outsourcing doesn’t have to mean losing control. The Virtual Employee model gives you both global scale and local command, helping your business grow securely, efficiently, and with full visibility.

Which one is right for your project? You decide!

Reviewed & Updated: November 2025