IT Project Outsourcing vs. Staff Augmentation in 2023
(Updated Aug’23) Every modern business has to meet its IT needs to succeed and stay in a competitive market. To fill extra gaps in their organization companies turn to outsource models. There are different types of Outsourcing models that companies can use to fill talent gaps.
This article will discuss two top popular outsourcing companies- IT Project Outsourcing and IT Staff Augmentation. Both models are becoming popular in the IT industry day by day. Which model would you choose?
Both outsourcing models have their advantages and disadvantages. They both Help Organizations with Web Application Development in their respective ways. Let’s dig in.
IT Staff Augmentation
This outsourcing model consists of hiring developers for some time. IT Staff Augmentation allows companies to add employees to their teams based on their skills to support their business. The expanded staff acts as an extension of the existing team. In this model, resources are provided by the team extension company. It provides the company with new perspectives.
This differentiates employees from outsourcing IT projects and other third-party hiring options. Consultants, freelancers, and contractors are not part of the company’s employees.
To replenish employees, companies temporarily lure people into specific tasks. Both IT Staff Augmentation and IT Project outsourcing are two different models. In the latter case, the company outsources its work for third-party execution.
However, recruitment providers provide talent to do part of the project themselves. The main difference lies in the management process. The outsourced vendor creates the milestones and manages the entire process, while the Staff Augmentation vendor provides it to some developers and has to be managed by a technical manager.
Pros of IT Staff Augmentation
- Staff Augmentation strengthens staff management
- It gives effective integration with internal processes
- IT Staff Augmentation uses existing resources
- This model has a high technical specialty
- Scalable staffing needs
Implementing an extended model is much easier than outsourcing a project. However, despite its many advantages, it also has some drawbacks.
Cons of IT Staff Augmentation
- Intensive training is possible
- It has to be dependent on internal processes
- It may cost high management fees to some companies
- Resource-centric model
IT Project Outsourcing
While recruiting people to complement talent needs is a hallmark of augmentation, IT Project Outsourcing involves hiring an entire team to undertake a specific project. Comparing staffing and software outsourcing, if your development team brings in engineers to meet such needs, it’s staffing.
However, hiring the entire development team for Custom Software Development will have more staff. In IT Staff Augmentation and IT project outsourcing, the workers employed in the latter model remain independent rather than joining the official roster.
The Project outsourcing agency is more responsible for the final result and quality of the project. When outsourcing, it is essential that the two companies act on mutual trust and ensure a fruitful partnership. The better the outsourcing agency understands inside and outside the client company, the better the project will be.
Pros of IT Outsourcing
- IT Project Outsourcing Reduces training costs
- It gives Scalability to project
- It allows the adoption of better practices
- Economies of scale
- It also Reduces management responsibility
Cons of IT outsourcing
- It gives a Lack of control over a team
- Internal resistance
- Find the right outsourcer can be a little tough
IT Staff Augmentation vs IT Project Outsourcing VS Other Services in 2023
IT Staff Augmentation and Outsourcing of IT projects are different from alternative models such as managed services and freelance. In freelance, the hired talent acts like an independent contractor. This means your company is not employed and not part of an outsourced team.
Managed services are more similar to outsourcing. However, while outsourcing agencies work on a project-by-project basis, managed service providers provide ongoing support and advice.
Choosing the best model for you
Choosing a suitable technology delivery model is not a day-to-day and easy task. In this case, the “one size fits all” concept doesn’t work, and you have to consider many variations. These include:
- The budget your business is willing to invest in IT services;
- The project requirements and technical skills of the employee
- Technical capabilities and the presence of its team;
- Project schedule and speed of product launch;
- A competitor’s position in the marketplace and many other respects.
Employee Growth is a flexible workforce solution that provides technical expertise to your internal teams. This type of outsourcing is best for Long-term Projects.
IT Staff Augmentation is the best choice for creating a project from scratch and doesn’t mind outsourcing management directly to an external team. The expert services by Chapter247 Infotech of Staff Augmentation also offload your team so that you can focus on your core business.
Choosing a suitable IT Outsourcing model can be tough for many organizations. In the end, What matters is that the IT Outsourcing you have chosen for your organization fits the requirements of the job.
At Chapter247 InfoTech, They have the experience and the best talents to deliver the best result in IT Projects. They are a well-known IT Staff Augmentation Services Company; schedule your appointment now!