Staff augmentation vs project outsourcing: which one is more convenient for you?

Staff augmentation vs project outsourcing: which one is more convenient for you?

Today, staff augmentation and outsourcing are great solutions and a relief for some companies' issues. But we introduce a question maybe you’ve asked yourself before: Are staff augmentation and outsourcing synonyms? Keep reading and you'll get an answer and a little bit more information to decide which one of them to apply.

Quick changes and market demands have made the development of software solutions almost a necessity to improve internal processes and to guarantee a better customer journey.

These demands have made the quick development team increase essential, and that has made staff augmentation a trend like never before.

The meaning of staff augmentation:

Staff augmentation is a solution to incorporate the skills your company needs at a lower cost through outsourcing. Typically, staff augmentation is used as a solution to cover a temporary need for a specific resource. Thanks to software development, staff augmentation is an easier task done by analyzing candidates and matching them with the skills and requirements needed at the moment.

Get these benefits with staff augmentation

  • Quick access to missing skills and capabilities: you can hire personnel quickly, for specific activities within the company.

  • Cost reduction: This methodology helps to reduce costs significantly, as you do not have to pay anything extra to this person and you do not incur any additional legal or contracting costs. All these costs are borne by the provider who charges a premium for the all-in-one service package.

  • Flexibility in hiring: This is a great advantage since usually companies or professionals in this branch tend to adapt to the schedule requested by the company that requires the service.

  • Administrative support: As you increase your staff, some administrative tasks can be delegated to the service provider, thus increasing your company's productivity.

  • Access to the global talent pool: Today, with staff augmentation services available worldwide, employers no longer have to choose from a limited pool of options. They can search the globe and find exactly the person they need for their project.

Issues of staff augmentation

  • Privacy risks: This can be a problem because you have to give new personnel access to your company's data, so you must trust in them. We're talking about programming data, databases, accounting, etc.

  • Communication issues: remote work in staff augmentation contracts is common, especially in software development engagements, so you'll need the right tools and methods that guarantee the best communication process between you or your team and the external resource.

  • Management challenges: Management channels must be established so that internal and augmented staff are well-integrated into the project implementation process.

Let’s get to know the outsourcing definition

Project outsourcing enables a company to execute complete projects using the services of an external service provider. When you outsource a team, the responsibilities on them are on the provider. That's the main reason for its popularity. The outsourced company assumes the tasks of training, maintaining contracts between employees, and producing results.

Advantages of outsourcing

  • Increase efficiency and save money: Team outsourcing allows you to make more efficient use of your time and can give you a competitive advantage with cost structure and economies of scale. Typically, a provider can offer a staff of qualified professionals with varied experience for the cost of an in-house employee.

  • Time-saving: Outsourcing providers tend to be faster because they have the knowledge, experience, and resources to start new projects immediately and finish them as soon as possible.

  • Easy adaptation to changes: In this globalized world, where everyday technologies are updated and every development is very fast, outsourcing providers are more qualified and equipped to adapt to these changes by assuming and managing the risks associated with them.

  • Promotes planning and computerized documentation of knowledge: Supplier assumes the risk of delivering committed services for a price.

Disadvantages of outsourcing

  • There is less control over the project because, once the objectives, results, and deadlines have been established, the actual execution of the project depends on the outsourced company.

  • Your current team may resist the idea of outsourcing because it changes the way of work a little until that moment, but this rarely happens. If you hire a professional team, I'll have a perfect match between your current in-house team and the outsourced.

Let’s compare two models: staff Augmentation vs outsourcing

Project and activity management

Staff Augmentation: You have greater control of the development since you expand your internal team. Yes, you'll need software tools to manage tasks, activities, communications, and workflows, but also you'll have total control of them because they are of the same quality as your employees.

Outsourcing: On the other hand, this aspect is not as easy as the last option. You hire a remote team directed even for another company, and although they are linked to your processes, there would be some decisions and activities you don't know or control.

Integration with complex internal processes

Staff Augmentation: At this modality, each new staff member must know and be involved with your complex or simple internal processes because they'll be part of them.

Outsourcing: Team outsourced can solve issues or challenges in your complex internal processes, and in that case, they must know and understand it. But if they just bring a specific service (as software development or IT support) they don’t need to deeply understand your internal processes. They just offer a solution.

Sharing the burden of risk:

Staff augmentation: Just you and your company have the risk, because under this modal team expanding you look in a market for professional services and know-how to incorporate it in your team. They'll convert into part of your internal team.

Outsourcing: you are paying for a specific, prearranged result or processes, and sharing the burden of risk with the outsourcing vendor.

Cobuild Lab can help you with your staff augmentation process by developing custom software solutions

To decide between outsourcing a team or implementing a staff augmentation process isn't simple. It requires (as you read) minimum conditions and tools for communications, tasks management, follow-up, among others. So, we are prepared to help you and make what we know best: developing software solutions.

We don't have the best answer for you now because we believe in custom solutions tailored perfectly to our customers' necessities, so if you want our opinion in your specific case, please contact us to schedule a meeting. It won’t take more than a half-hour!

On the other hand, if you decide to outsource a team for IT support, software development, or logistics SaaS, we also can help you. Our team is to start, develop and improve your path to digital transformation.

In both cases, contact us and take your company to the next level with all custom software development benefits. Are you ready to start?

Keep receiving our weekly news and content by subscribing to our newsletter. We promise to only send relevant information.