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Staff Augmentation
Staff Augmentation is the strategy followed by companies when they already have a working team, and you need a few resources with a specific skill set for a short time. In that case, they hire developers with the required skill set temporarily.
You follow Staff Augmentation when you already have a team, and you need a few more resources to meet the deadlines or when you need some specific skill set and your team doesn’t have it. In these cases, it is not economical to hire in-house employees, as it takes a lot of time. Staff augmentation can be beneficial in these cases.
Project Outsourcing
IT outsourcing is a common practice that is followed by companies nowadays. The main attraction for the companies in outsourcing is it’s reduced overall expenses. It also improves operational efficiency. With the rapid evolution of technology, to keep up with the pace is pretty tricky. But if you don’t keep up with it means you are going back in business. And here comes the role of outsourcing. When you don’t have in-house resources for a particular skill set, and training them is an expensive and time consuming affair, people choose to outsource.
The companies choose another vendor and give away your project for them to complete. So here, the company can focus more on other projects.
The Main Key Difference
The main fundamental difference between Staff Augmentation and Project Outsourcing is that in the former, they purchase external resources to meet the deadlines or bridge the skillset requirement and also when you need resources quickly. And in Staff Augmentation the control of the project remains with the company. You can still implement the project in the way you want. In the case of Project Outsourcing, the entire work is completed by another vendor. So here, the company does not have full control over the project. It is in control of the vendor.
Other differences
There are many other differences between Staff Augmentation and Project Outsourcing. Here are the few differences.
Cost effects
It is the most significant factor; the main reason behind adopting outsourcing is to cut costs. If we take the case of project outsourcing, it is efficient in ensuring the planned expense. The company has to find out the appropriate agency for the project, complete the project with the required quality, and hand it over. You don’t have to worry about the training expenses of the employees.
In staff augmentation, you have to approach IT staff augmentation services and get the expertise resources. Even then, you will have to spend on their training part to make them up to the pace the company wants. And also, if you are hiring the team, the expense will increase according to the resources’ experience. It also depends on the project; if it is a small one, then project outsourcing is not advisable.
The quality of the outcome
Project quality might differ in both cases. In staff augmentation, you are still in control of the entire process. You know the whole strategy. So you can be sure about the quality of the end product.
In the case of project outsourcing, you don’t have hold of the project. It can affect the quality of the work. Or maybe you can also get a higher quality product. Staff augmentation offers you more flexibility to check on the quality of the product compared to project outsourcing.
Hybrid Approach
Another version is known as the hybrid model, which is a mixture of both staff augmentation and project outsourcing. In this case, you can choose the plan of action according to your needs.
If there are two interdependent projects which require some different skills and the second one is out of the company’s core capabilities. So here the company might need to adopt both the approaches. And that becomes a hybrid approach. So you can change it according to your requirements.
Conclusion
Project Outsourcing and Staff Augmentation are, in a way, very different strategies. The company can make use of it according to the requirements of them. The two approaches can be beneficial for our company. The main difference lies in control over the project and the managerial efforts required.
Summary
Staff Augmentation and Project Outsourcing are two strategies that companies follow in times of need. Staff Augmentation happens when the company already has a working team and is in lack of few resources with skill sets not already available. In this case, the companies recruit resources temporarily. So here, the employee is not recruited as an in-house employee. Project Outsourcing happens when the entire project is handed over to another vendor. So the vendor is in charge of the project.
The main difference between staff augmentation and project outsourcing is in control over it. In the former, the power stays with the company while in the latter, it is with the vendor. The organizational efforts are also different, in staff augmentation the organizational efforts are the same as other in-house projects, but in outsourcing, there are no administrative efforts required. In outsourcing, the success of the project depends entirely on the other company. At the same time, in staff augmentation, you can track down and make improvements if needed, which will assure the success of the project. The cost factor is also different in both approaches. There is another approach which is the mix of the both known as the hybrid strategy.
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