Staff augmentation vs outsourcing refers to hiring professionals for your project to fill the talent and skill gap. The catch is that staff augmentation entails hiring a team of developers based on short or long-term contracts based on their requirements. In contrast, outsourcing refers to hiring third-party developers or required staff to work on your project.
In this blog, we focus on the main differences between staff augmentation vs outsourcing, understanding the main differences, pros and cons, and when to choose one.
What Does Staff Augmentation Mean?
Staff augmentation is the process of extending your in-house team by hiring professionals on short- or long-term contracts. The team, engineers, or any hired staff work in extension with your team to work on the required project.
Pros and Cons of Staff Augmentation
Staff augmentation has proven to be extremely helpful for the SMBs. Startups, and enterprises as well. Let’s look at the benefits of staff augmentation first and then the downsides too (which of course exist).
Pros of Staff Augmentation
The main advantages of staff augmentation include speed hiring, fulfilling talent or skill gaps, and flexibility. Below is a brief description of each one below.
Speed Hiring
Staff augmentation services are quick and save you from screening long-term CVs. By choosing staff augmentation to enhance your team, you can quickly find the best candidates for your project based on your requirements. The benefits it further yields are it is time-saving and cost-effective as well as helping you get people started working on your project ASAP.
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Fulfils Talent/Skill Gap
Many companies choose staff augmentation when there is a huge talent or skill gap. And guess what? It has helped them drastically in filling the skill gap. Another top benefit of staff augmentation is that it helps you quickly fill the talent gap, and you can hire professionals in the required domain as soon as required.
So, for example, if you need to hire a Laravel developer for your project, you can quickly find them through staff augmentation service providers and scale your team up.
Flexibility
Staff augmentation offers flexibility to companies whether startups, SMBs, or enterprises as it takes no long-term commitments. Professionals are mostly hired for short-term contracts so that they can work on the projects and complete them as they are required.
Cons of Staff Augmentation
The cons of staff augmentation include privacy issues and managing the extended team. Below is a brief description of each.
Privacy Issues
Sharing personal information about the organization can be risky at times. Certain financial, operational, and other business operations need to be confidential, however, in some projects sharing the information is required with your augmented team. The best solution to overcome this issue is to mention your privacy policy in the contract, have an NDA signed by the employees, and keep a thorough check on your security when it comes to documentation, files, or other organizational assets.
Management Problems
When the team is working remotely, there could be some issues with managing and directing the staff. It can lead to having half an understanding of the project and the augmented staff might not be able to pull the expected results. In order to overcome the solution, it is better to have clear communication channels, sync-ups, and progress tracking so that everyone is aligned.
What Does Outsourcing Mean?
Outsourcing refers to contacting third-party service providers to hire remote developers while they are required. Unlike staff augmentation, outsourcing entails hiring third-party developers or required staff to outsource the core functions of the project if you don’t prefer to hire a full-fledged in-house team.
Pros and Cons of Outsourcing
Well, there are plenty of benefits when it comes to outsourcing your project to software development companies. Does it have its downsides? Yes!
However, the best thing about staff augmentation and outsourcing is that the advantages outweigh the disadvantages. Let’s talk about the pros and cons of outsourcing.
Pros of Outsourcing
The pros of outsourcing include cost-effectiveness, scalability and flexibility, extra-quick hiring, and access to global talent. Below is a brief description of the main pros of outsourcing.
Access to Global Pool of Talent
Outsourcing gives you an edge over a global pool of talent as you don’t have to comply with geographical boundaries. You can hire professionals in any domain by choosing the outsourcing model for your organization. It allows you to tap into specialized skills and expertise from all over the globe.
Scalability and Flexibility
The best thing about outsourcing software development is that it gives leverage to the companies for scaling their team up and down based on requirements. You can hire more developers if the project demands grow for resources. Not only that, but you can also downsize your resources if there is no need. The flexibility of the outsourcing model makes it a good choice for entrepreneurs, or those who have just even started it.
Cost-Effectiveness
The outsourcing model has proven very effective as it mostly follows the pay-as-you-go model. You only pay for the work you get done or the hours spent on your project depending on the number of resources. By choosing the outsourcing model, you do not have to spend hefty amounts on hiring along with employee benefits and other costs. It saves organizations from all extra costs. If you are on a budget and want to save on extra costs, then outsourcing can be your best choice.
You Can Hire Within 48 Hours
Many outsourcing companies like Devace Technologies offer quick outsourcing solutions in which you can hire a skilled developer as soon as within 48 hours. With speed hiring, you can fully utilize the resource at your earliest times and get the project done soon. This way you can hire more quickly without waiting for months.
Cons of Outsourcing
Even though the pros of outsourcing are numerous, it has its downsides too. Let’s get into it.
No Direct Supervision
As the hired professionals work remotely, the hiring company does not get to directly supervise the team. It can lead to communication gaps and understanding of the project therefore it is best to follow the staff augmentation best practices that can save you from any unprecedented obstacle occurring.
Quality Compromise
As the team is not directly controlled, there might be some quality challenges to face. However, it should be noted that it might not be the case always. It is better to communicate your requirements, expectations, and brief project details to the hired staff so that there are no issues regarding the quality of the project or product.
Differences Between Staff Augmentation vs Outsourcing
The main differences between staff augmentation vs outsourcing are based on four main aspects i.e., pricing and cost, management and supervision, flexibility and scalability, and lastly quality and expertise. These factors determine the distinguishing features between them.
Staff Augmentation vs Outsourcing? When to Choose
Choosing staff augmentation vs outsourcing can be a difficult choice and a decision to make when you are unsure when they are best fitted. Let’s explore when to choose staff augmentation vs project outsourcing to get the best results from these business models.
When to Choose Staff Augmentation?
You should go for staff augmentation if you are looking for selected skills required for a short time period. You can hire the team on a contractual basis and once it is done you won’t need to spend extra money and time with the hired staff. They only work for a short period, especially when the roles are not technical.
When to Choose Project Outsourcing?
If you have a long-term project and you want to save costs, then outsourcing is the best choice. It helps you find professional and skilled developers from around the globe, enhancing the potential of the project and results. If you require specialized skills and expertise, then outsourcing would be the right path to choose.
What Do Devace Technologies Experts Recommend: Staff Augmentation or Outsourcing?
Outsourcing is better if you are looking for skilled professionals to work on your project with a long-term commitment and need specialized developers. However, if you want to get a custom free consultation for your project, please reach out to us at hello@devaceltd.com.
Staff Augmentation Vs. Outsourcing – Which Model is Best for Your Business?
Both staff augmentation vs project outsourcing have numerous advantages. If your company needs quick results with a limited budget, staff augmentation can be the best for your business. However, if the project gets long or requires professional and technical expertise, then your business should go for project outsourcing.
You can find plenty of firms that offer staff augmentation and outsourcing services. To ensure you can work with them, the best approach is to check review websites, look at their testimonials, and, most importantly, look at their portfolio. By combining all these factors and evaluating them, you can find the best match for your company.
However, there are several other factors included that are:
- The timing and deadline to launch the product/project
- Need of technical expertise and availability of your internal/in-house team
- Specifications about the project and its scope
- The budget you are willing to spend on your software development project
Apart from factors for choosing staff augmentation vs outsourcing, here are some other important questions that you should ask before choosing one:
- Is there any possibility your short-term project will convert into a long-term one?
- How and what control do you want for project and team management?
- Does it need a full-fledged team or just a few resources?
By finding answers to these questions, you will be better able to understand the approach you should take. It entirely depends on business needs, financial constraints, and the factors we have mentioned above.
Conclusion
Modern problems require modern solutions. Staff augmentation and project outsourcing have become the most frequent business models for companies and recruitment. Choosing one based on your requirements can help you work with a global and diverse team at the most affordable prices.
Frequently Asked Questions
Which is more cost-effective: staff augmentation or outsourcing?
It depends on the project scrape, duration, and project size. Staff augmentation can be cost-effective for short-term projects. But if there are lengthy projects then outsourcing has more effective hiring and engaging models.
How does the control and management differ between staff augmentation and outsourcing?
With staff augmentation, you retain full control and management over the augmented staff as they work within your team. In outsourcing, the external company manages the tasks and deliverables, providing you with the results.
Do you offer outsourcing or staff augmentation services?
Yes, at Devace Technologies we offer our best three engagement models i.e., staff augmentation, outsourcing, or dedicated team. You can choose the one that suits your business requirements and project scope the best.
