Project Outsourcing Vs Staff Augmentation
Which outsourcing model is not? Are you a startup looking to outsource your software development? i.e., Staff augmentation or project outsourcing best suits your startup needs? You’ve landed on the right page if a question matches your criteria.
I will explain the two outsourcing models: augmentation and project outsourcing, and the advantages and disadvantages to you so you can decide which model is best suited for your startup project.
What is IT Staff Augmentation?
The increase in IT staff refers to the short-term outsourcing of IT professionals from outside the country to complete software development projects. In recent years, workforce growth has increased dramatically, and according to a report, the size of the IT project outsourcing market is expected to grow to $937.67 billion by 2027.
Increasing IT staff provides new businesses with several benefits, including access to global IT experts, no hiring hassles, savings on infrastructure costs, improved operational efficiency, faster response time, etc.
In this model, developers are brought on board to speed up the software development project. Recruitment is designed to provide additional capacity when needed and is typically only used for short periods. Recruitment allows for the recruitment of pre-screened experts who can begin work without education. In this model, you manage the team remotely and control the extended staff.
The critical difference between augmentation and project outsourcing is that in augmentation, you hire IT staff, on a short-term basis. In contrast, you subcontract the entire project to an external provider in project outsourcing.
Advantages of Staff Augmentation
Staff augmentation offers several exclusive benefits for startups, and some of them are:
- Easy Access To Global Experts
Increasing your workforce can allow your company to tap into talent worldwide. This allows you to find a candidate who is an expert in their field and gives you access to various skills and knowledge. When companies outsource work, they can be sure they are using qualified professionals with experience in IT staffing services. Companies need help to keep up with changing technologies. However, outsourced IT staff already know the industry and are ready for new projects. Additionally, by leveraging this global workforce of talented individuals, companies have access to a greater variety of skills than would otherwise be possible.
- No Hiring Fuss
Hiring IT staff can seem like an overwhelming process. What if you hire the wrong person? How do you know they are a good option for your business? Is it nice to have someone to take care of the technical stuff so you can focus on other parts of the business?
This is exactly what happens with the increase in staff. You don’t need to worry about hiring and training, as pre-vetted professionals are ready to implement your software development project.
- Scale Staff Up or Down Quickly
Staff augmentation allows you to rapidly increase or decrease your staff based on your business needs. And with a global workforce to draw on, this approach means you can find someone who’s a good fit for the job and can hit the ground running.
Additionally, many companies find that outsourcing their IT work can make them more competitive in the marketplace. They have no overhead for hiring permanent employees, and their workforce is flexible enough to adapt quickly to customer demand.
- Quality Assurance
Hiring IT staff augmentation services will give you high-quality products per your business needs. Having worked on various software development projects, they have ample knowledge to deliver successful projects on time. This way, you can be sure that the end product is of high quality.
- Engagement
Increasing your IT staff is a cost-effective way to leverage IT for your business without hiring full-time employees. By hiring IT staff on a probationary basis, you can determine if they are a good fit for the job before you commit to it. If you’re not a good fit, you’ve saved money and time by not hiring someone who doesn’t work.
Not only that, the increased headcount offers many other benefits, including lower overhead costs and more flexible working hours. When you use staffing services, you don’t have to worry about additional expenses like payroll taxes, unemployment insurance, sick leave, or healthcare benefits.
- Security
As the staff increases, the external team is responsible for your intellectual property (IP) and ensures that your company’s data is always safe. You no longer have to worry about your IP security when you choose IT staff augmentation services.
Disadvantages Of Staff Augmentation
There are also some drawbacks to choosing staff augmentation services.
- Issues with Management
If you decide to increase your staff, you may face challenges managing your remote developers. Using task management software like Asana will help you overcome administrative headaches.
- Issues in Communication
Various communication issues may arise as you work with a team of remote developers. But using top-notch communication tools like Slack will help you avoid misunderstandings.