IT Project Outsourcing vs. Staff Augmentation: Which is the Ideal Choice?

These days, filling the skill gap for a successful software development project has become cumbersome. Furthermore, every organization aims to keep up with the continuous trend of improving operational efficiency while reducing expenses. As a result, IT services are gaining huge traction.

According to Statista, global spending on IT services is projected to reach $5.1 trillion by the year 2024. Of all, IT Project outsourcing and Staff Augmentation are two primary high-in-demand services as these fulfill all the technological needs of the organizations. However, many businesses fail to decide which one is the ideal choice. Which model can deliver the desired outcome, ensuring cost-effectiveness and operational efficiency?

So, in this write-up, we will cover the difference between IT Project outsourcing and Staff Augmentation and the pros and cons of each of them, clearly answering your questions.

What is Staff Augmentation?

Staff augmentation is the flexible outsourcing strategy businesses leverage to temporarily hire individual professionals or a team of experts to complete any specific task or development project.

This model allows businesses to scale their in-house team while efficiently handling the increased workloads, meeting the set deadlines, and achieving the goals using the skill set of professionals hired on a contractual basis.

Pros of Staff Augmentation Services

High Productivity

The reason to consider IT staff augmentation is the team of experts you hire from outside is already skilled and well-versed in the best practices and leading technologies. Additionally, such professionals hired temporarily can get your project up and running as projected, helping your team achieve their set goals hassle-free.

Minimum Learning Curve

As discussed, the team you hire is already skilled, well-known about the challenges faced by organizations, and capable of addressing the technical hassles immediately. As a result, it minimizes the learning curve and helps achieve the set project objectives.

Cost-Efficiency

When choosing this model, you need not spend on hiring full-time employees and providing training or worry about other overhead costs. Simply hire a precise number of professionals temporarily and continue the contract as per the project demands, saving money and ensuring operational efficiency in the long run.

Flexibility and Convenience

Choosing the Staff Augmentation model lets you immediately scale up or down your in-house team. You don’t fear losing productivity as hired professionals are well-knowledgeable. Such convenience and flexibility help your workforce meet the project demands without disruptions.

Cons of Staff Augmentation Services

Training and Onboarding Process

Though training is not required when you choose the Staff Augmentation model, the complexities of the project may induce the need for additional training to outstaffed experts, further requiring resources and time.

Require Efficient Team Handling Processes

Handling an augmented team is tedious as it requires deploying robust processes for better coordination, planned task allocation, and continuous interactions with the hired professionals and the client.

What is IT Project Outsourcing?

Outsourcing is the approach that involves assigning a project or a piece of the task of any specific project to a third-party company. For example, you can outsource your marketing requirements, web design, or development needs and the outsourcing company will be accountable for the task’s quality and end outcome.

Furthermore, it will save cost and time as the hired company will have specialized expertise and focus on core competencies to deliver high-end software solutions.

Pros of IT Project Outsourcing Services

Increased Efficiency and Cost-Effectiveness

Outsourcing eliminates the need to recruit or train in-house experts, reducing the overhead costs related to office equipment, infrastructure, and beyond. You leverage the expertise of external service providers, streamlining business operations, reducing time-to-market, and project completion within the set deadline.

No Recruitment Efforts

In the outsourcing model, the service provider you partner with takes the burden off of hiring the developers, designers, or marketers as per the overall project requirements. Thus, saving your efforts and time of hiring and building a team.

Access to Leading Service Providers

By outsourcing, you partner with a specialized outsourcing company holding years of experience and skill set in leading technologies. Such expertise is essential in solving technical complexities and ensuring the development of high-performing software solutions.

Risk Mitigation

Partnering with outsourcing companies helps in mitigating any project risks. Such service providers hold expertise, and industry experience, and follow the best processes to identify and resolve any challenges or risks coming in the way of successful outcomes.

Cons of IT Project Outsourcing Services

Communication Barriers

Collaborating with external service providers may not seem an ideal decision if there are any geographical barriers. It further leads to communication challenges and language barriers. Also, time zone differences require extra effort to avoid communication gaps.

Reduced Supervision

While the outsourcing model brings multiple benefits, there is one disadvantage: minimum control over the project. The outsourcing partner handles everything from project execution to delivery, meeting quality standards and deadlines.

Which One to Choose Between IT Project Outsourcing and Staff Augmentation Services

There is nothing such as a right or wrong choice. IT staff augmentation services can be your go-to choice if you want to benefit from quick onboarding and knowledge sharing. On the other hand, if you want to establish long-term partnerships with service providers and get the project completed with minimum effort and supervision, the project outsourcing model can be your pick.

Besides, the specific requirements, project objectives, set budget, and deadline, all these factors contribute to the decision-making. In addition, weigh the advantages and disadvantages of both options to make the ideal choice.

Why Hire Orion eSolutions for Outsourcing and Staff Augmentation Services

Orion eSolutions is an IT Staff Augmentation and Outsourcing services company that has been serving businesses across the globe since 2012. Our company builds comprehensive software solutions for diverse business domains such as Retail, Education, Healthcare, eCommerce, and beyond.

With Orion eSolutions, you hire more than just a service provider. Whether you want to scale up your in-house team or want to outsource the complete project, our team ensures excellence, delivering top-notch software solutions.