Staff Augmentation v/s Project Outsourcing

Staff Augmentation v/s Project Outsourcing

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If you area business dealing with a budget crunch or need to own a workforce army for a small project then you have two choices to make: staff augmentation and project outsourcing. These two are the most typical transcendent outsourcing models that any IT organization can ever prefer.

Both these choices come with a set of pros and cons and leverage business operations separately. Accessing required and skilled talent for a specific job without having much of a costing burden is a sure thing with both these models. However, it is wise to know what both these terms mean and how they work before making a choice.

This article is dedicated to them only. Let’s understand the difference between these two models and what kind of benefits that they render. So, scroll down and grasp every detail.

Staff augmentation

Understanding the Meaning of both

Before we get dig into details, it is essential to recognize what both these terms mean.

Staff Augmentation

Staff augmentation

A kind of service outsourcing model, staff augmentation attributes to the process where an IT or software company charters a team of skilled engineers or developers from another company for a specific project. It is a kind of external hiring intended to fill out the talent gap without getting into trouble with resume shortlisting, interviewing, and training.

This model has helped companies to acquire the right kind of talent pool without spending excess money on operations like recruitment, payroll, and staff management. Despite that, the customer company will have a direct hold over the team hired and command them.

Due to its easy scalability, this model has been a favorite of many companies. Let’s say XYZ is an IT organization with a team of specialists skilled in certain technologies. Now, they got one huge project that necessitates an extended skill-set, say Magneto. So, instead of hiring Magneto professionals, ABC company decided to do staff augmentation.

For this, they contacted another software company that has Magneto professionals and asked them to send a team for a certain period. The team will be working from the customer’s site and report to the officials there only. This is how staff augmentation works.

Project Outsourcing

Project Outsourcing

Project outsourcing is a whole different approach. An extensive project, where there is more than one skill shortage exists; project outsourcing is the viable solution. In this kind of model, the customer company will pay for a certain and pre-determined outcome.

The onus of delivering the outcomes is on the outsourcing service provider. The direct control over the team would be of the service provider only.

The recruiting firm will only hire professionals to get the job done. The hire team will be dedicately working from a separate location. It happens in offshore, nearshore, and onshore model.

Here is an example demonstrating project outsourcing:

Project outsourcing

ABC is a real estate firm that is needed a mobile phone app for their business. So, they hire a mobile app development company and will outsource their services for this project. The mobile app development company will work at their site, follow the instruction, deploy a viable team for the project, complete it, and then deliver it to the client’s site.

It does not matter, whatever the option you choose, it is crucial to hire the right kind of service partner. Also, make sure the one you have chosen is skilled in many things so that it can cater to all your requirements easily.

Bacancy Technology could be an ideal staff augmentation or project outsourcing option as it is skilled in many technologies and can offer assistance at multiple verticals. Choosing such a partner makes many things simplified. It eliminates the complexities of both kinds of outsourcing models.

Weighing Down the Merits & De-Merits

Both the outsourcing methods work with a different approach and likely to render outcomes differently. So, having a better understanding of them, before deciding, is a good idea.

Merits of Staff Augmentation

  1. Amazing flexibility

With staff augmentation, businesses have great flexibility. They can decide how many team members to hire, when to hire, and for how long to hire. They can decide when to scaling up and when to scaling down. In short, they have the whole control.

  1. Quick skill-gap filling

It is the easiest way to fill out a particular skill gap at the least possible costs and efforts. You can access any kind of desirable skill set in a simple process.

  1. More empowered in-house team

In this outsourcing model, the supplement workforce works in close proximity with the in-house team that makes it more leveraged and skilled.

  1. It is like an added bonus for your in-house team as they have additional help.

  2. Reduced burden on the in-house team

With the staff augmentation process, it is easy to reduce the burden on the in-house team as they have a helping hand. Your in-house team doesn’t have to burn the midnight oil to do something that is out of the syllabus for them.

De-merits of Staff Augmentation

  • Staff augmentation is not always a win-win situation. Sometimes, the supplement team and in-house team will have a tough time maintaining the pace.

  • While it will save you from hiring the team member, you still need to devote some time to educate the new team members about your company policies and work-culture. Also, you are bound to provide the basic amenities to the team. This increases a little bit of operational cost.

Merits of Project Outsourcing

  • No hassles at all

When you handover the responsibility of project completion to another service provider, there are no hassles to bother or bug you. Your team can concentrate on other crucial kinds of stuff. Of course, huge cost savings are imperative. One doesn’t have to invest in any kind of special or added infrastructure. The training cost is also negligible in this kind of outsourcing model.

  • Better skill access

With project outsourcing, gaining access to diverse skills is easy. Even if that skill is rare, you can have it.

  • Focused team

Your in-house team will be more focused and productive when they don’t have to engage in a job that is not meant for you. It also increases employee satisfaction and reduced the attrition in the in-house team members.

De-merits Of Project Outsourcing

  • There won’t be any control on the team. This could lead to miscommunication, delays, and non-adherence to the quality protocols. Many businesses have experienced poor service delivery in project outsourcing as they can command the work process.

  • Project outsourcing is not a viable solution for small projects and need. It can only be considered if the project is extensive and diverse assistance is needed. Hence, it is limited.

Ending Notes

Running a business is a tough job and it needs a lot of resources. For resources that are not accessible for a certain project and job, one has a choice to choose between staff augmentation and project outsourcing.

Both are the most famed outsourcing models and can fill the skill gap of a business. However, each works in a different manner. So, chosen as per your needs and what fits the most. Go for the best service provider who has in-deth knowledge and extensive experience in offering one-of-a-kind development services.

itstaffaugmentation staffaugmentation projectoutsourcing itprojectoutsourcing

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