Staff Augmentation vs IT Outsourcing: Key Differences And Which to Choose

Lyudmila Kucher
Lyudmila Kucher

I specialize in outstaffing and staff augmentation, and I have extensive experti...

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Staff-augmentation-vs-outsourcing Whats-the-difference

Do you plan to launch a new IT project soon? Perhaps you want to improve and update your current products or take your business to a new level. Facing such challenges means that your company grows and develops. And that’s great.

If you need talents to realize these and other goals, welcome aboard! We are here to discuss two solutions: staff augmentation vs IT outsourcing. One of these might be the perfect fit for your project. Read this article from start to finish. We are talking about the advantages and disadvantages of both models. Also you’ll get recommendations on how to choose the best option. Ready? Let’s dive in!

IT staff augmentation is ideal for businesses seeking to maintain control and integrate external expertise into their existing teams. In contrast, outsourcing suits those looking for comprehensive, hands-off project management.

-Dashdevs​​

IT Staff Augmentation: Benefits and Drawbacks

First, we are going to figure out what is resource and staff augmentation. Let’s start by defining the concept: staff augmentation means that you add skilled specialists to your team on a temporary basis. The purpose could be, for instance, implementing one or several projects, meeting deadlines, etc. It’s worth noting that in this case, you don’t hire talents yourself but entrust this task to an agency.

Pros of staff augmentation:

 

  • Total control over the project, as well as over team members and their task performance.
  • Staff integration with existing processes and company culture.
  • Quick scaling of your team up or down based on project requirements.
  • Access to a wide pool of experts with specific skills needed for short-term projects.
  • Involving augmented staff to various projects within their responsibilities and work schedule.
  • A faster onboarding process compared to new full-time hires.
  • Speeding up certain tasks to meet deadlines.

 

Cons of staff augmentation:

 

  • More expensive due to hourly rates and agency fees compared to outsourcing.
  • Requires additional effort from internal management for training and communication.
  • Your company should have a manager to supervise the work of augmented staff.
  • Relying on internal resources can shift the focus of the business and increase costs.
Staff Augmentation business model
Staff Augmentation business model: Inveritasoft.com

If you delegate tasks such as development to temporary employees, your in-house team can focus on more important strategic assignments. Augmented staff can indeed bring their expertise to your company, especially when we are talking about highly qualified experts. You’ll definitely get the job done.

However, be ready to pull your socks up because you should devote time and resources to training and educating your new employees. Consider the maintenance costs. Compare this approach with another one and make the right decision then.

IT Outsourcing: Benefits and Drawbacks

Project outsourcing is a different kettle of fish. But the goal is the same. In this case, you’ll also get your project ready. The essence of this approach lies in delegating specific tasks to an external service provider. You save your time, effort, and resources. A team of qualified and experienced experts is engaged in implementing your project.

Pros of IT outsourcing:

 

  • Increased efficiency and faster project delivery thanks to technologies providers often have.
  • The provider has a manager who organizes the process of work on the project and monitors quality.
  • Access to talents with specialized skills and expertise not available internally.
  • Flexibility to scale resources up or down based on project requirements.
  • You don’t waste time looking for specialists, as all experts are in the provider’s team.
  • You don’t have to spend money on employee hiring and training.
  • Your company can focus on core business activities and strategic initiatives.
  • Provider is responsible for meeting agreed-upon deliverables.

 

Cons of IT outsourcing:

 

  • Less control over the project management and quality assurance.
  • Possibility of communication challenges and misunderstandings.
  • There may be concerns about the quality of work.
  • Your company may become overly dependent on outsourcing providers.

Here is a thing. You can avoid these drawbacks of IT outsourcing by choosing a reliable partner. Please understand that the market is full of agencies that offer IT services. Of course, you can meet companies with no experience, inflated prices, lack of quality guarantees, etc.

When choosing a provider, pay special attention to their previous experience, analyze the portfolio, assess the comfort of communication, and read reviews. Apply the right approach for searching the contractor. Be sure this model might be very profitable for your business.

 

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Staff Augmentation vs Software Outsourcing: Key Differences

We want you to pay your card’s right and pick up the best option. These two approaches have a fundamental difference that you need to understand. A model that will be perfect in one case can be a complete loser in another. So here is a comparison table about staff augmentation vs project outsourcing.

Criteria

Staff Augmentation

IT Outsourcing

Main Goal

Fill specific skill gaps or augment the existing team for a limited period.

Delegate entire projects, functions, or IT operations to an external service provider.

Control and Management

Team members are considered an extension of the internal team. It allows for more direct control and management.

External service provider manages the outsourced tasks or projects independently. You as a customer have less control.

Cost Structure

You pay for the services of the augmented staff on an hourly or project basis, along with any agency fees.

Have a more structured pricing model. It can be, for example, a fixed-price contract or ongoing service fees.

Skill and Expertise

Often used to fill specific skill gaps or bring in specialized expertise for a project.

More about accessing a broader range of IT services or functions, often on a more comprehensive basis.

Integration and Collaboration

A higher level of integration and collaboration between augmented staff and the internal team.

Works independently and may not integrate as closely with the internal team.

Involvement Level

A higher level of involvement from the company in terms of managing and overseeing the augmented staff.

Requires less day-to-day involvement.

Flexibility and Scalability

Companies can quickly scale their team up or down based on project needs.

Changing the scope or size of the outsourced work can be more complex.

Onboarding

Involves integrating staff into the existing team and familiarizing them with the company's processes and culture.

Is more about setting up the initial communication channels, establishing project goals and timelines.

By the way, we analyzed the experience of well-known companies. It might be interesting for you. For example, Google works with about 121,000 temporary employees and contractors from different countries. Amazon has utilized staff augmentation to quickly scale its customer service team during busy shopping seasons, such as Black Friday and Cyber Monday.

Staff Augmentation Benefits
Staff Augmentation Benefits: Tekglide.com

Let’s also consider real-life examples of IT outsourcing. Microsoft may outsource the development of a specific feature or module of its operating system to a third-party company. As well as IBM who entrusted some projects to external vendors in countries like India and China. This model allows business to access specialized expertise and reduce costs. When providers work on development in-house team can focus on their core activities.

Staff Augmentation vs. Software Outsourcing: What Model Will Be Suitable for You?

So now you have a big picture. You can see the difference between these two outsourcing models: project outsourcing vs staff augmentation. What is your next step? Actually, it’s time to choose the perfect fit for your current needs. And we have a few more tips to help you make the right decision.

Reasons to choose staff-augmentation model
Reasons to choose staff-augmentation model: Tnation.eu

 

5 Reasons to Choose the IT Outsourcing Model

IT outsourcing is a prevalent decision. Many various businesses successfully exploit this model. It is a great choice for healthcare organizations, banks, financial services firms, educational institutions, manufacturers, online retailers, and so on.

The perfect image of IT outsourcing model implementation is also a tech startup. They can delegate IT development while a full-time IT department works on core business tasks. The outsourced team can perform creating and maintaining the company’s website, mobile app, or other software solutions.

Key reasons to choose the IT outsourcing:

  • Lack of the necessary expertise for a specific IT project or task in-house.
  • More cost-effective solution than hiring and maintaining an in-house team.
  • Seasonal or fluctuating workloads.
  • You want to find skilled professionals that may not be available locally.
  • Solving issues associated with technology implementation and project management responsibilities.

As you can see, for short-term projects or tasks that require specialized skills, outsourcing is a cost-effective and efficient solution. If you are still thinking about what to choose outsourcing vs staff augmentation, consider this fact: the first model allows you to cooperate with different specialists (developers, DevOps engineers, UI/UX designers, project managers, etc.) simultaneously, in the second one you must hire them separately.

Looking For A Reliable Staff Augmentation Partner?

Let’s discuss in details.

5 Reasons to Select the Staff Augmentation Model

Staff Augmentation use cases
Staff Augmentation use cases: Turing.com

Let’s imagine you run a financial services company. For now, you need to develop a new fintech solution to stay competitive. Your existing team is loaded enough with their main tasks. What can you do in this situation? Sure, you can augment your IT staff with additional developers and project managers. This way you can accelerate the development process and bring the product to market as soon as possible.

Five main reasons why you should use staff augmentation for your project:

  • Quickly bring in experts with specific technical knowledge.
  • Easily scale your workforce up or down. Add or exclude employees focusing on project requirements without long-term commitments.
  • Manage budgets effectively. Hiring temporary staff costs less than engaging full-time employees.
  • Accelerate project timelines by augmenting your team with additional resources.
  • Mitigate risks in critical projects by employing experienced professionals.

We have one more example for you. Imagine a startup working on an innovative mobile app. Their budget is limited so far. It means they don’t have money to hire a full-time development team. Staff augmentation might be a good solution. A startup can bring in experienced app developers for the duration of the project. Owners have an opportunity to manage the project, access high-quality talent and control costs in the most effective way possible.

Staff augmentation allows businesses to hire experienced professionals for performing short-term projects. Just think about how much you can save. You don’t have to pay for seek leaves and vacations like in the case with an in-house team. Also, you don’t spend a lot of money on onboarding processes. Most of these expenditures are the responsibility of the agency which provides IT staff augmentation services.

How staff-augmentation provide valuable for businesses
How staff-augmentation provide valuable for businesses: Veroke.com

Use Talmatic to Simplify Your Search

Even if you understand the pros and cons of staff augmentation vs. outsourcing, it could be difficult and time-consuming to find a team or developer who can guarantee that you will be satisfied with the result.

We have great news for you. Today, you can find developers online. Talmatic is here to help. Whichever model you choose — IT staff augmentation vs. outsourcing — you can get the best offers using our service. Don’t waste your time looking for companies and comparing their terms of cooperation. We’ve already done that for you:

  • Talmatic outstaffing service brings together the best professionals from Ukraine and Eastern Europe.
  • We carefully review each expert’s expertise and experience.
  • You can hire developers of various specializations (Android, Blockchain, C#, Backend, Azure, etc.).
  • You will receive the best solution within 48 hours after applying.
  • Get expert advice on any engineering or team hiring questions.

 

Haven’t you decided between staff augmentation and outsourcing yet? No problem. Tell us about the specifics of your project and the current challenges you are facing, and we’ll offer the best solution for your case.

Choose employees through the Talmatic service. This way you can be sure that the work will be done with the highest quality level and within the project timeline. Please write to us for details.

Frequently Asked Questions

Looking to hire remote software developers but have a few questions unanswered? We are sharing our list of frequently asked questions by our clients when hiring software developers.

view all

Staff augmentation is a popular outsourcing model. It involves hiring developers on a short-term basis. Usually, an external agency brings experts to your company instead of your HR department.

With staff augmentation you get developers who will work under your control. They will be a part of your company. IT outsourcing differs. Picking up this option, you entrust the project completely to external specialists.

In the first option, you should hire each specialist separately. If you outsource the project, you will get a team ready to work from day one.

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