- Staff augmentation and outsourcing are both cost-effective and viable solutions for IT managers working towards meeting performance goals and deadlines at different phases of development. Although they are similar in some ways, these two options have unique differences that company managers must consider before deciding what will work best for their business.
| Staff Augmentation | Outsourcing | |
|---|---|---|
| Popularity | Popular for businesses needing temporary skilled workers or handling short-term projects. | Widely used by businesses looking to offload non-core tasks or gain access to global talent. |
| Applications | Ideal for businesses that want to maintain control over their projects and need temporary skill enhancements. | Ideal for businesses wanting to focus on core operations and outsource secondary tasks. |
| Key Advantages |
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| Key Disadvantages |
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| Cost-Effectiveness | Can be cost-effective for short-term needs, but long-term costs may add up. | Often more cost-effective over the long run, due to potential lower wages and operational costs in certain countries. |
| Infrastructure | Requires existing infrastructure as augmented staff will use your business’s resources. | Infrastructure is usually provided and maintained by the outsourcing provider. |
| Training | May require some initial orientation or training. | Minimal training required, as the outsourcing company is expected to have the necessary skills and expertise. |
| Communication | Communication can be seamless, as augmented staff work directly with your teams. | Communication mechanisms need to be established; could be less immediate than in staff augmentation. |
| Flexibility | High, as you can scale the team as per project requirements. | Depends on the contract; scaling up may require contract revisions or additional costs. |
| Security | Mid to High; you have control over data, but augmented staff access needs to be managed. Explain: You will have to ensure that the augmented staff follow your security protocols. | High; Outsourcing providers are expected to follow high security standards. Explain: The service provider is responsible for security and must adhere to agreed-upon standards. |
| Tools and Processes | Follow your company’s established tools and processes. | Tools and processes are typically established and managed by the outsourcing provider. |
| Agreements | Short-term or project-based, can be extended as needed. | Often long-term and comprehensive, covering a range of services. |
Choosing staff augmentation or outsourcing is a decision that must be made after considering the needs of your company. These are the key points worth noting as you determine what will work best for your business.
What is Staff Augmentation?
Staff augmentation is a temporary addition to your team that usually employs one person with expert knowledge in a specific field. Augmented staff comes in at various development stages and uses their specialized experience to move your project forward.
Some companies augment staff at the beginning of a project while other managers bring in additional staff right before the product release for reviewing purposes. If there are any flaws or weaknesses found in the system, augmented staff can correct the issues within their capacity.
What is Outsourcing?
Outsourcing is hiring a team through an outside business that provides workers for a set amount of time or for a specific project. Firms that outsource workers are professionally managed services with an emphasis on helping your business meet specific company goals. The company receiving the service and the outsourcer always establish a contract before work begins. With the growing popularity of this approach, it’s anticipated that development outsourcing will grow by 70% by 2023.
Staff Augmentation is for companies seeking flexibility
IT managers can speak directly with augmented staff to discuss their progress and tasks can be reassigned at any point in the development phase with the consent of the worker. Unlike outsourcing, augmenting staff doesn’t require companies to stick to specific tasks the entire duration of a project.
If your management team has effective communicators and needs a flexible worker that can quickly adapt to new responsibilities in a changing environment, staff augmentation is the way to go.
Outsourcing is for companies with no room for additional managerial duties
Your company may be better suited for outsourcing if IT supervisors are unable to manage additional employees. An outsourcing firm will provide you with a team that will abide by the terms outlined in your software development contract. The outsourcer is responsible for training this team, explaining their individual responsibilities, and conducting performance reviews.
Outsourced workers create a less stressful learning environment by giving your permanent staff more time to adapt to new processes. Assigning tasks to contract workers will help your company transition more seamlessly during these transformative periods that require your in-house staff to embrace new technologies or project management approaches.
Outsourcing helps businesses to scale by providing the flexibility to add new team members or release them as needed during IT development. This capability further enables businesses to operate at their desired scale effectively.
Consider the Hybrid Approach
If neither one of them is meeting your needs, consider a combination of the two. Combining outsourcing and staff augmentation is a hybrid approach that allows you to work interchangeably with outsourced teams and augmented staff at different points in the development process, starting from the initial development phase until the completion of the project.
In-house workers have an array of responsibilities to fulfill. In the IT world, these duties are often set alongside short time frames to meet project goals. Whether you choose staff augmentation, outsourcing, or a hybrid approach, companies, and employees will benefit from the additional staff that saves time and money.
If you enjoyed this article, be sure to check out some more outsourcing articles.
