Staff Augmentation Vs Outsourcing: Which To Choose?

By: Himani Juneja Time: 11 Min Read Updated: OCT 19, 2021


In an ambiguous and briskly changing business environment, the demand for IT services is shooting up. Consequently, today’s market is facing a paucity of skilled software developers. Whether it is the need to cut personal costs, accelerate project timeline, make the entire workflow more efficient and effective, or focus on the core business, IT software development service providers come to the rescue. They suggest an array of outsourcing engagement models such as staff augmentation and project outsourcing. Though these options provide you with proficient and adept engineers or designers who assist your team in completing the project within the mentioned deadline, there are some crucial distinctions between the prior mentioned choices that you should be aware of before concluding.

But, the question remains - Which model should you plump for? Your answer is here!

Take a glance at a brief description of both models to understand the polarity between them. Keep reading till the end to get an answer to your unanswered question.

What Is Staff Augmentation?

IT Staff Augmentation is an outsourcing model that involves hiring skilled technical sources where software development companies provide their engineers in the form of external hiring to cover necessary positions in a team on a permanent or temporary basis. You are granted the trump card that allows you to choose candidates that are a perfect fit for your requirements and to extend or tail off your augmented team at any point in time. Thanks to the IT Staff Augmentation vendors who help you add skilled technical resources to your in-house development, reduce costs related to recruitments, payroll services, and project implementation. Additionally, it is an easily scalable process.

What Are The Advantages Of IT Staff Augmentation?

  • 1. High Productivity Level

    In staff augmentation, the developers are focused on a single project, i.e., 100% of their work time is devoted to one specific task. This results in a high productivity level of a company.

  • 2. Hire On The Go

    One of the top-notch benefits of IT Staff Augmentation is that it allows firms to hire employees that befits the short-term requirements. This further saves the company from additional costs of permanent hiring, like health benefits and employee provident funds. Through this model, you can bridge the gap between demand and supply of professional skills cost-effectively and efficiently. By hiring on the go, IT Staff Augmentation services serve the interest of both the employee and employer.

  • 3. Cost Efficiency

    Since the professionals are hired for a short tenure, the firm does not have to bear the additional long-term costs. IT Staff Augmentation has a transparent cost structure. You don’t have to worry about expenses like office space, workstations, and other facilities. All you have to do is pay the decided fee to the vendor, and he will take care of arranging everything.

  • 4. Competitive Edge

    Bringing in new resources will grant more knowledge and technological boost to your enterprise. When you partner with IT Staff Augmentation companies, the presence of external talent allows the firm to elevate their market by showcasing the pool of talent available with them. This pool of talent further accords them a higher position and gives them an edge over their competitors.

  • 5. The Blooming 5G

    All major wireless provider companies are ready to roll out 5G! The 5G technology upholds the promise of high data transmission speed and broader connectivity for IoT devices in remote areas, greatly enhancing the reach and functionality. IoT utilization can be made much easier with the fusion of 5G. Analyzing the market trends of 2021, the growth of5G will foster innovation and accelerate global demands. After industrial IoT, smart cities are second in line for 5G implementation. In the near future, where homes and spaces will have automated, voice-controlled devices, lighting, and air-conditioning systems, the blossoming of 5G will resolve the issues of developing smart cities and towns as data connectivity losses could easily be combated.

What Does The Term Outsourcing Mean?

Yet another outsourcing engagement model, IT Outsourcing, has been a great helping hand for the firms. It is an external service provider that effectively delivers IT-enabled business processes, infrastructure solutions, and application services to business companies for upgraded outcomes. Outsourcing in a broader sense implies partnership than just augmentation that involves an array of software-related services like analysis and design, UI/UX design, quality assurance, project management, support, and maintenance. The IT Outsourcing companies manage recruitment, training, fabrication of a team of skilled professionals. The team works separately from your firm and never gets involved in internal development activities or any other in-house programming work. It enables the firms to reduce cost, accelerate time to the market, and take advantage of external expertise or intellectual property. While outsourcing, you are paying for a particular, prearranged outcome along with the burden of risk that you share with the vendor.

What are the benefits of IT Outsourcing?

  • 1. Control IT Costs

    One of the most apparent benefits of IT Outsourcing is the reduced costs. Outsourcing allows you to convert fixed IT costs into variable costs that keep you budget-friendly. To put it simply, you pay only for the service you avail. In addition, once the contract is signed, the burden of setting up, training, and managing the team falls on the vendor, which further helps you control the IT costs.

  • 2. Scaling Staff

    With Outsourcing, an enterprise can hire as many or few members as needed and are integrated with projects and crucial tasks immediately. As soon as the project finishes, the firm can reduce the staff members, thus allowing scalability of staff too. This further grants unprecedented control over the project management without wasting time on hiring and training new employees.

  • 3. Increased Expertise

    The firm gets an added benefit of improving the level of expertise of their experience by hiring an outsourced IT company that manages their IT. On the contrary to in-house hiring, IT outsourcing companies have multiple experts on staff with expertise in hardware, software, networks and servers, technical support, and whatnot. Through outsourcing, you get the profit of all these facilities at a fraction of the cost of bringing similarly experienced experts in-house.

  • 4. Compliance And Security

    When an IT sourced company manages your security and compliance, you get a dual benefit. One of increased experience and expertise related to security measures and compliance for your firm and second a partnership with a company whose business success relies on the quality of their security and compliance services. All the risks for the workflow performance and results are put on the service provider.

How To Choose The Best Option?

After a thorough comparison between Staff Augmentation and IT Outsourcing, it is time to answer the unanswered question, “ How to choose the best option?” Both models of outsourcing are beneficial for the company and can be opted for hiring outsourcing employees. The choice between the two depends on the company’s needs and targets. Utilize the IT Outsourcing model if you are waiting for the outcome of the outsourcing process. Contrarily, if you are looking for temporary additions to your company’s existing team, then the Staff Augmentation model will fit the bill. To sum up, both IT Outsourcing and Staff Augmentation are winning solutions for outsourcing. The decision solely depends on the needs and goals of your company. As your company’s growth rate keeps elevating, you can alter these engagement models as needed.

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