Globalization and the rise of the internet phenomenon have lead to the growth of IT projects and software organizations. Success and failure depends on the ability to finish projects on time, reduce budgets, and complete task and specification.
Staff augmentation and project outsourcing are viable, cost-effective options for IT organizations working on reducing cost, increasing efficiency and meeting business goals.
These two models are similar, but their unique differences must be taken into consideration to take a decision that will work best for the organization.
What is staff augmentation?
Staff augmentation is the temporary addition of a person with an expert knowledge in a specific field to your team. Augmented staff comes into the project at various development stages and helps your team move the project forward and meet deadlines.
Augmented staff can help managers at the beginning of the development process or can come in handy at the end, fixing and correcting any flaws or errors in the system with their unique capability.
Pros of staff augmentation:
IT managers can speak directly with the staff member and reassign them at any moment of the development process. Companies don´t have the need to stick augmented staff to a specific project for the entire development duration.
When managers have the need to look closely over processes, staff augmentation is ideal, since they have to report directly to the manager and respond to his needs.
Integration with internal processes:
Some companies may find more effective to integrate augmented staff into their existing business processes rather than align their processes to external teams.
Reduce cost of acquiring skills:
Capacitating and educating your team can be expensive and time consuming. Augmented staff can jump into your projects right away, helping companies reduce the cost of internal skill development.
Easy to adopt:
Companies are already used to hiring employees. Staff augmentation is just a small shift to the regular process.
What is project outsourcing?
Outsourcing is hiring an outside team or company that provides workers for a specific project or a set amount of time. Companies that outsource teams are professionally managed services with the objective of helping businesses reach their goals.
Pros of project outsourcing:
Outsourcing is perfect for companies where their management team is unable to supervise more employees.
Reduce management overhead:
Management is the responsibility of the outsourcer.
Keeps the focus on the core business:
Delegating the operational responsibility to the outsourcer allow companies to stay focused on the results and their core business.
Variable cost structure:
Shift fixed cost (employees) to variable cost (project cost) to improve operation leverage.
A hybrid approach:
Some companies have different needs and, sometimes, there are different needs within companies´ projects. Some projects are good for staff augmentation and some projects are good for project outsourcing; the hybrid approach is perfect for companies with different projects working simultaneously.
Whether you choose staff augmentation, project outsourcing, or a hybrid approach, companies and employees will benefit from the additional staff that saves time and money.
If you would like to know more about staff augmentation or project outsourcing, send us an email at the next link. We would love to hear from you.