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Project Outsourcing vs. Staff Augmentation: Which Staffing Model is Right for Startups?

Project Outsourcing vs Staff Augmentation

Are you a startup and looking to outsource your software development? Are you confused about which outsourcing model, i.e., staff augmentation or project outsourcing, will be the best for your startup needs? If any questions meet your criteria, you have landed on the right page.

How? In this post, I will explain the two outsourcing models: staff augmentation and project outsourcing. I will also tell you about their pros and cons so that you can decide which augmentation model is best suited to your startup project.

What is IT Staff Augmentation?

IT staff augmentation refers to outsourcing IT professionals on a short-term basis from outside the country to complete software development projects. In recent years, staff augmentation has seen a dramatic rise, and according to a report, the market size of IT project outsourcing is expected to grow to $937.67 billion by 2027.

What is IT Staff Augmentation?

IT staff augmentation offers several benefits to startups, including access to global IT experts, no hiring fuss, saving infrastructure costs, improved operational efficiency, faster turnaround time, etc.

In this model, developers are brought on board as needed to accelerate the software development project. The goal of staff augmentation is to provide additional capacity when needed and is typically only used for short periods of time. 

Staff augmentation enables the quick hiring of pre-vetted experts who can start work without training. In this model, you manage the team remotely and have control over augmented staff. 

The major difference between staff augmentation and project outsourcing is that you hire IT staff for a short-term basis in staff augmentation, while in project outsourcing, you outsource your whole project to a third-party vendor.

Pros of Staff Augmentation

Staff augmentation offers several exclusive benefits for startups, and some of them are:

Pros of Staff Augmentation

1. Access To Global Experts

Staff augmentation can give your company the ability to tap into talent from around the world. This will not only allow you to find a candidate who is an expert in their field but also give you access to diverse skills and expertise. 

When companies outsource work, they can be confident that they are using skilled professionals with experience in IT staffing services. It can be difficult for businesses to keep up with changing technologies. 

However, outsourced IT staff are already knowledgeable about the industry and ready for new projects. In addition, by tapping into this global workforce of talented individuals, businesses have access to a wider variety of skill sets than would otherwise be possible. 

2. No Hiring Fuss

Hiring IT staff can seem like an overwhelming process. What if you hire the wrong person? How do you know they will be a good fit for your company? Wouldn’t it be nice to have someone come in and take care of the technical tasks so you could focus on other parts of the business? 

With staff augmentation, that’s exactly what happens. You don’t need to worry about hiring and training because there are professionals who are pre-vetted and ready to deploy for your software development project. 

3. Quickly Scale Staff Up or Down

Staff augmentation lets you quickly scale up or down your staff, depending on the needs of your business. And with a global labor pool to draw from, this approach means you can find someone who’s well-suited to the job and will be able to hit the ground running. 

Furthermore, many companies are finding that by outsourcing their IT work, they can become more competitive in the marketplace. They don’t have the overhead costs of hiring permanent employees, and their workforce is flexible enough to adapt as customer demand shifts quickly.

4. Quality Assurance

By availing of IT staff augmentation services, you get high-quality products delivered as per your business requirements. Since they have already worked on several software development projects, they have abundant knowledge in delivering successful projects in the stipulated time. This way, you can rest assured that the final product will be of high quality.

5. Engaging on A Trial Basis

IT staff augmentation is a cost-effective way to get the IT help your business needs without hiring full-time employees. Hiring IT staff on a trial basis allows you to see if they’re right for the job before you commit to them. If it’s not a good fit, You’ve saved money and time by not hiring someone who doesn’t work out. 

Not only that, but staff augmentation offers many other benefits, including lower overhead costs and more flexible hours. When you use staff augmentation services, you will never have to worry about any additional expenses such as payroll taxes, unemployment insurance, sick leave, or health care benefits.

6. IP Rights Security

With staff augmentation, the external team is responsible for its intellectual property (IP), which guarantees that your business data stays safe at all times. You’ll no longer have to worry about the security of your IP when you choose IT staff augmentation services.

want to scale your development team

Cons Of Staff Augmentation

There are also some drawbacks to choosing staff augmentation services. 

1. Management Issues

While choosing staff augmentation, you may face challenges with managing your remote developers. Using task management software like Asana helps you overcome management issues.

2. Communication Issues

Since you work with a team of remote developers, you may go through several communication issues. But using top-notch communication tools like Slack help you avoid communication issues.

Project Outsourcing

Project outsourcing is a model in which startups and enterprises hand over overall software development projects to the outsourcing software development partner. Companies don’t need to worry about hiring employees, managing a team, infrastructure, or anything else. They hand over all their headache to the outsourcing partner and focus on their core business tasks.

Pros of Project Outsourcing

Let’s look at the significant benefits of project outsourcing to help you understand how it could be a viable option for your business.

Pros of Project Outsourcing

1. Quick Start Of The Project

When you outsource your project, your project gets started quickly. In contrast, it may take time to initiate when you work with in-house teams. You don’t have to worry about hiring technological experts, additional training, or buying software development tools to start the project. The outsourced team takes care of the whole project from scratch to deployment.

2. Reduced Risks

Outsourced software development companies have essential skilled professionals who take responsibility for your project. This way, you don’t need to bother about the risks associated with developing your software solutions.

3. Reduced Costs

Outsourcing your software development project helps startups save costs. You do not need to spend on recruiting employees, payrolls, healthcare insurance, buying office spaces, training staff, etc.

4. Access to Skilled Developers

Since outsourcing allows you access to worldwide talent, you get skilled developers to work on your project that help you develop robust software solutions. That’s why companies often prefer outsourcing their software development project to an offshore development company.

want to outsource your project

Cons of Project Outsourcing 

Project outsourcing also carries some drawbacks that you should not overlook. Let’s have a look at them.

1. Coordination Issues

One major drawback to outsourcing is the coordination issue. It can be difficult for an outsourced team to work in sync with your team, and this can lead to projects being delayed or not completed at all. However, using project management software like Zoho and communication tools like basecamp can help you resolve the issue.

2. Security Issues

Project outsourcing can cause security issues when you’re dealing with sensitive data, intellectual property, and other confidential information. This is because the outsourcing software development company that’s handling your project may not have the same level of accountability as you do. However, signing an NDA can help you avoid security challenges.

Summing Up!

Staff augmentation and project outsourcing vary from each other and offer exclusive benefits to startups looking to outsource their software development projects. However, you need to analyze your requirements before proceeding to choose either staff augmentation or project outsourcing.

If you need to speed up your development project, you can opt for a staff augmentation model where you get pre-vetted experts who are ready to work on your project instantly.

If you are looking for a reliable offshore software development company that can build the software for you from scratch, then project outsourcing would be the best suit for you.

You can also contact us at info@quytech.com to get expert help who will guide you as per your business requirements.