IT Staff Augmentation Vs Software Outsourcing: 7 Key Differences
In today’s IT world, businesses are in cut throat competition to get a greater market share. Two popular models that most businesses consider are IT staff augmentation and software outsourcing. Both approaches are great and are used by many companies. These helps improve project efficiency and also serve different business needs while at it.
In this blog, learn about the key differences between these two models to help you better understand which of these would work best for you.
1. Definition
Both of these are different in terms of how they essentially work. Hiring outside developers or IT specialists to collaborate with an internal team is known as IT staff augmentation. These experts fit in with your company’s workflow, adhering to your development procedures and management structure. When a business assigns a project or a portion of its software development process to an outside team, this is known as software outsourcing. Delivering the product in accordance with the established requirements is entirely the outsourcing partner’s duty. So while staff augmentation supplements your internal team, outsourcing means that you hand your work over to another external vendor.
2. Level of Control
With staff augmentation, you have full control over what you are doing, since the augmented staff works under you and adheres to all of your internal standards. In software outsourcing, the project is managed completely by the service provider. This means that they are the ones who make all the decisions related to technical expertise and operations. If you want to have full control over your project, then staff augmentation is the best choice for you.
3. Flexibility and Scalability
In staff augmentation, there is a very high level of flexibility, which means that businesses can adjust the team size in the best way possible. This is great for projects that have differing workloads. This means that you do not need long term commitments and can easily manage things in the best way. With outsourcing, flexibility largely depends on the specifics of the contract. It depends entirely on what is written in the contract.
4. Cost Implications
Usually, staff augmentation has a simple pricing structure, with businesses paying for the services of the additional employees according to a set contract rate or the number of hours they work. For short-term requirements, this could seem cost-effective, but it’s crucial to take into account the hidden expenses, such the time and money required for integration, management, and possible training. These costs may mount up and impact the model’s overall financial performance, particularly if the augmentation is carried out over an extended period of time. Outsourcing has a rather different cost structure where companies have a predetermined fee for the completion of a project. This can lead to huge cost savings largely due to the economies of scale in the way that the partner works. But the most important thing is to be aware of hidden costs before you partake in any venture.
5. Talent Acquisition and Skillset
With IT staff augmentation, companies can select different professionals with the skills that they require for their projects. But in this approach, there has to be internal oversight as well so that everything can remain within control. But in software outsourcing, businesses have to rely on the outsourcing partner so that they can get access to the right talent, which eventually allows them to achieve what they want in the best way, without any direct involvement from the client.
6. Integration with Internal Teams
Your internal teams and IT staff augmentation operate together seamlessly, using the same procedures, resources, and corporate culture. This guarantees more seamless cooperation.
An outside team works on the project independently as software outsourcing functions. Deliverables, meetings, and progress updates are the primary means of communication.
7. Expertise and Specialization
Staff augmentation is an approach in which companies get access to talent based on what they think they need. It is great when a project requires a specific skillset which the inhouse team does not have. With this approach, companies can selectively integrate experts into the team based on what they require. Outsourcing as an approach is one where companies can get the added benefit of bringing wealth and experience from working across different industries. This allows for them to be able to work in the best way.
Both of these are great approaches when it comes to getting people to do the work that you require. The approach that you want to go for depends entirely on what your specific requirements are. So first understand what it is that you want to achieve and then work in that direction.
