Making The Right Choice: Project Outsourcing Vs Staff Augmentation
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 and agile also plays a massive role in determining the success of a company. To be able to do all of the above, companies need to invest in new IT needs all the time.
The problem is that such demand is sporadic in nature. Most companies do not have static IT needs. Therefore, when innovative technologies emerge, if a business is unable to keep up, it can have disastrous outcomes. In such situations, companies need to have a well-equipped and capable workforce. Developing the skills of employees in-house is quite expensive and usually considered high-risk. Fortunately, other alternatives are available in the industry.
The two most common models for outsourcing work are – project outsourcing and staff augmentation. This article will provide an in-depth understanding of these delivery models.
Project Outsourcing
IT project outsourcing allows a company to complete their projects using the resources of an external firm. In some cases, only specific components of the project may be outsourced to a sub-team while sometimes the complete product development cycle can be outsourced. In this model, the team is staffed and managed by the outsourcing service provider.
Here Are Some Of The Benefits Of Using A Project Outsourcing Model
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Reduced Training Costs
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Scalability
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Adoption Of Better Practices
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Economies Of Scale
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Reduced Management Responsibilities
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Result Centric
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Focused On Core Business
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Variable Cost Structure
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Lower Legal Risk
Here Are The Disadvantages Of Project Outsourcing
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Lack Of Control
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Internal Resistance
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Finding The Right Outsourcer
It is often difficult for companies to assess the quality of potential outsourcing firms. Hence investing time in finding the right partners and working along side to make the partnership fruitful and engaging is recommended.
At Mindbowser, We have managed a 1000+ project for various businesses across multiple industries and geographies. We come with 8+ years of experience of doing just one thing, delivering products for businesses like you and we are pretty damn good at it.
Our 100+ strong team of experts follow industry-standard practices, in fact, our team has created most of the best practices out there so you can rest assured that your product will be delivered on time & in an optimal state.
Free Ebook On Different Outsourcing Models Explained
Staff Augmentation
Here Are The Advantages Of Staff Augmentation
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More Control Over Staff
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Effective Integration With Internal Processes
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Leverage Existing Resources
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Expert Specialization
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Scalable Staffing Needs
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Reduced Skill Development Costs
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Reduced Liabilities
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Meet Deadlines
Team augmentation provides sufficient resources to complete projects on time.
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Internal Acceptance
Employees will feel less threatened by augmenting staff than by outsourcing the entire project.
It is much easier to adopt a staff augmentation model than to outsource projects. But despite its various benefits, it has a few disadvantages as well.
Here are the drawbacks of staff augmentation:
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Can be Training Intensive
Augmented staff might require additional training to understand the tools and processes of the company.
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Reliance on Internal Processes
Staff augmentation resources will be affected by flaws in internal processes.
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Burden on Management
As resources grow, management will have to supervise the growing number of augmented staff.
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Resource Centric Model
The central aim of staff augmentation is to achieve goals. Therefore, companies still are responsible for managing projects and resources.
Mindbowser offers a plug and play engagement model that enables you to take advantage of talented experts without having the need to train or orient them. We provide a ready-to-deploy team of global experts that you can use whenever and however you want.
Team augmentation is ideal for technology teams looking to extend their capabilities for a period of time to tackle a particular problem. It enables businesses to take advantage of offshore plug and play talent.
Read About How A Clinical Trial Platform Built Their Team With Mindbowser
So how to decide which model suits you best.
Here is a quick table to help you decide.
| REQUIREMENT | STAFF AUGMENTATION | HYBRID MODEL | PROJECT OUTSOURCING |
|---|---|---|---|
| Maintaining tight control | Yes | - | - |
| Integration with the internal processes | Yes | - | - |
| Infusing new skill while still leveraging existing capabilities | Yes | Yes | - |
| Filling project team gaps which mainly consist of specialized skills | Yes | Yes | - |
| Acquiring more resources to complete an active project | Yes | Yes | - |
| Cost-effectively managing IT staffing needs which change frequently | Yes | Yes | - |
| Achieving breakthrough gains in productivity and efficiency | - | Yes | Yes |
| Going beyond core competencies and overcoming lack of internal capabilities | - | Yes | Yes |
| Implementing best practices & guideline for a project | - | Yes | Yes |
| Placing the responsibility for management results and risk outside the company | - | - | Yes |
| Staying focused on result & the core business | - | - | Yes |
| The large scale of outsourcing which delivers both increased productivity & cost benefits | - | - | Yes |
| Companies with No IT department or No Development Staff | - | - | Yes |
To choose the right delivery model, you will have to consider many of the above factors. You can even decide to go with a hybrid approach. At the end of the day, the right choice is the one that suits your organizational needs.
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