When and why to flip the coin?

Quality is decided by the depth at which the work incorporates the alternatives within itself, as so masters them.           While walking on a lonely road for a few KM, I got very tired and I was thinking that if I would have an alternate vehicle or someone over there to help me out, but I was all alone.

           Same way, in industries all around the globe, there is a growing need for reducing expenditure while retaining operational efficiencies. The success of a business depends on being able to compete and that can only be achieved by building efficiency. Being innovative plays a massive role in determining the success of a company.

           Same way, there is an increasing drive to reduce costs and improve operational efficiencies through technological innovation. This naturally translates into a growing number of IT projects, where success or failure of a business can often hinge on the ability to complete these projects on time, within budget, and to specification.

           So, we need to flip the coin. There are many different models of cooperation with a software provider to choose from, where Staff Augmentation and Project Outsourcing a dedicated team of experts is considered to be one of the most popular. But which one should we choose?

           IT staff augmentation allows a company to add staff to their teams based on the additional skills required to support their initiatives. Resources are employed by the staff augmentation firm while IT project outsourcing allows a company to execute entire projects using the resources of another firm. In some cases, this can also take the form of “out-tasking”, where specific tasks of a project might be outsourced to a sub-team which is staffed and managed by the outsourcer.

           Let’s take a look at a short comparison of the pros and cons of both options: -

The world must turn upon its axis, And all mankind turn with it, heads or tails.

Responsibilities and Cost Effectiveness

In both models, the service provider is responsible for the recruitment and employment of engineers.

Staff Augmentation is cost-effective in the long run since it helps you put to use the skill set of contractual employees without having any of the liabilities of the permanent workforce. It is based on the times and materials-based pricing model. How much time one invests and what materials have been put to use to achieve the final outcome, decides the total cost incurred by the organization. While in Project Outsourcing, the company will take care of their employee and their wellbeing as well.

Project Management and Control

If your project grows with the time you do not need to worry about additional employees that may lose their job after the project ends. You simply pick people with the right development skills and continue the project not worrying about high-level delivery. Since the added staff works in-house, the client has more control over them. While in Project Outsourcing’; control of all aspects of the project lies with the outsourced entity.

Expert Advice and Internal Acceptance

We know we are going to hire only the best hands on deck for a particular project when we are opting for the Staff Augmentation Model, the greatest advantage of which is that we can tap into expert skills and services! It gives our project outcome the competitive edge which every firm so eagerly pursuits.

When a company looks to meet a need which is beyond the scope of their core competencies, it may be difficult for them to assess the quality of potential project outsourcing firms.

Existing employees often embrace a Staff Augmentation model more than a Project Outsourcing model. Existing employees are less likely to feel threatened by augmenting staff with a few individuals than by outsourcing entire projects.

Insights and Knowledge

One major disadvantage of temporary employment is that augmented developers usually lack the knowledge of your organization, your other projects or products, your previous business experiences, or industry insights. Therefore, you can’t expect them to be as proactive or innovative as a regular employee would be.

That’s where another advantage of outsourcing a dedicated team lies when compared to staff augmentation – a dedicated team supplier creates a close relationship that allows for handling your needs in a personalized way, and the team has great opportunities to dig deep into your business and get to know your true needs. A good software partner will come up with initiatives that can give your company a competitive edge.

Ease of Adoption

           It’s easier to adopt a Staff Augmentation model than a Project Outsourcing model. Companies are already used for hiring employees. Staff augmentation is just a small shift from what companies already do.

Flip a coin. When it's in the air, you'll know which side you're hoping for.

It is much easier to adopt a staff augmentation model than to outsource projects.

The demand for skilled software developers is growing faster and faster and the supply is low. That is why a lot of IT companies struggle with hiring people with the right skill set.

Staff Augmentation (right next to project outsourcing) is another answer onset of managed services provided by companies. This time, instead of hiring a whole team or full-time employees that you need to let go when particular tasks are done, you may just hire offshore specialists who will push the job forward.

Take a look at Staff Augmentation because it may be an answer to your needs.

In our last article, we were discussing a lot about IT Staff Augmentation; business model, and its benefits. If you would like to pick those conversations up, the links are given below.

Article 1: - Staff Augmentations; One of the Smartest Business Model

Article 2: - IT Staff Augmentation Benefits

We will discuss further on emerging technology in my next article. Be connected...….

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