The staff augmentation vs. project outsourcing debate has been raging on ever since outsourcing became popular as a way to save money, improve efficiency, and grow businesses, but this discussion has only grown more complex with the introduction of staff augmentation into the mix. So, what exactly are staff augmentation and project outsourcing? How are they different from each other? And how should you decide which one is right for your business? We’ll answer all these questions here, so read on to get the full scoop! : ...
Types of Freelancers
When it comes to freelancers, you'll often see two types—those who work independently (aka, solo freelancers) and those who work in teams of one or more people (often referred to as agencies). It’s important to note that these are independent definitions; both have their positives and negatives depending on your needs. If you choose a dedicated development team , they will operate within your company as an extension of your internal staff; they might be physically separated from them or not, but they operate under strict guidelines set by you as their employer/client. The most common benefit of using a dedicated development team is that they will usually become well-versed in how your business operates, making them better able to meet deadlines and keep projects moving smoothly.
Staff Augmentation Pros
With dedicated developers and designers on-hand, a staff augmentation company can give your team a much-needed hand during busy times or when you have one-off projects that require a great deal of time and effort to complete. These pros are particularly important if you have one or two employees who play multiple roles at your company (for example, if you’re running social media in addition to creating content for your clients). Staff augmentation is less expensive than hiring full-time employees because it allows companies to keep overhead costs down—and it keeps certain talent within their reach for future projects down the road.
Staff Augmentation Cons
Staff augmentation companies typically charge by the hour, which can lead to inflated costs and encourage cutting corners to finish a project quickly instead of producing high-quality work in a timely manner. Also, using an outside company will probably mean losing some control over your operations; you might not have access to key staff at all times, and you may not be able to easily fire employees or restructure departments should business needs change down the line. And depending on whom you hire for your staff augmentation team, internal communications may suffer due to misaligned goals and priorities. To learn more about these cons—and get information on how best to offset them—check out Staff Augmentation Cons.
Project Outsourcing Pros
The #1 benefit of using project outsourcing is flexibility. When you work with a firm that specializes in staffing for IT projects, you can select a dedicated development team to complete your project and have them work together on it for as long as necessary to get it done. Plus, if one member of your team has to leave, there’s no disruption to your project – because you already have a team in place with expertise in exactly what you need done! That way, you don’t have to worry about losing time or money while waiting for new hires to be trained.
Project Outsourcing Cons
As a project-based service, project outsourcing is perfect for small or specific tasks that you may not need all year long, but do require expertise that would be hard to come by in-house. It’s also great for highly skilled work that doesn’t align with your organizational culture. The main downside of project outsourcing is a lack of consistency and an increased likelihood of one-off errors or mistakes due to personnel turnover (as opposed to having a stable staff augmentation team). The second big downside is cost, as qualified employees are often expensive and if you don’t know how many hours they will work each month, it can get expensive quickly.
The Right Approach for Your Business
Staff augmentation is different from project outsourcing in that staff augmentation happens year-round, rather than on a contract-by-contract basis. Businesses may use a staff augmentation company to solve specific business problems (like an influx of seasonal workload), but might also hire them for ongoing duties like managing your IT department or staffing your call center during peak hours. Staffing companies are great for short-term needs and can help you find employees when you need them most, so they're generally worth it as long as you have a fixed budget and know exactly what kind of work you'll be getting from them.
Conclusion
So, there you have it. Everything you need to know about staff augmentation vs project outsourcing. If you are still a little confused or undecided, take some time to familiarize yourself with each of these types of services and see which one might be a better fit for your business needs before making a decision. This will ensure that you get everything from outsourced services that you need without paying for anything that you don’t want or need! Good luck and happy hiring!
