When a software company or a corporate department needs to accelerate project timelines and cut down personnel costs, companies often turn to technology staffing services for help. Nowadays, IT service providers suggest a few outsourcing models such as Project Outsourcing, Staff Augmentation, and managed services.
All of these models can provide skilled engineers or designers to assist the development of the company as outside talent. However, two of the most predominant outsourcing models are staff augmentation and project outsourcing.
What is Staff Augmentation?
Staff augmentation is the outsourcing strategy that helps companies to fill the talent gaps within the organization. This is simply all about hiring skilled talents on a short-term basis.
What is Project Outsourcing?
Project outsourcing is an agreement in which one IT firm hires another firm to be responsible for a whole project.
Tabular comparison between a project outsource and a staff augmentation.
Project Outsourcing |
Staff Augmentation |
Solves lack of internal capability |
Leverages existing capabilities |
All the resources handled by the vendor only |
All the resources handled by the company only |
Commitment according to task’s scope |
Only limited commitment from external talent |
Team includes the agency’s employees only |
Team includes the both agency’s employees and in-house employees |
Costlier for long-term projects |
Ideal for accomplishing projects |
Benefits of Staff Augmentation
The staff augmentation model boosts the IT team’s numbers temporarily with skilled staff throughout a specific project.
- The staff augmentation model offers IT companies and businesses a smart deal of flexibility when it comes to scaling down or scaling up their team members. Reduce the pressure of having to worry about hiring and recruiting. Staff augmentation agency hires domain-centric employees only so that companies can get the best talents in the market for a short-term project.
- Cost-saving is one of the best benefits of the staff augmentation model. If a company is located in a country where the high standard of living is high, the company has to provide insurance cover, provident fund, increment, and other additional job security benefits. When companies go for a staff augmentation model, they only pay money as per the requirement of projects. Companies can cut down costs by hiring a staff augmentation model for handling short-term projects and some long-term projects.
- A fixed workforce helps employees access the source and knowledge of other staff possesses in the company environment. Business growth always depends on new opinions and ideas. The staff augmentation model is an outside source that comes with new technology and skill sets, in which, companies can implement new ideas on current business operations. Permanent employees can learn something new from the skilled staff augmentation model.
- While companies leverage experts of staff augmentation agencies, they can simply control projects. All the staff augmentation agencies ensure that they only outsource the employees to be part of the existing team.
Benefits of Project Outsourcing
Project outsourcing is one of the staff engagement models. It differs from the staff augmentation model in many ways
- Cost reduction is one of the obvious benefits of it. Companies can simply hand over the project to another company without any hassles.
- No need to spend money on training, managing, and setting up a team. The only companies need to sign an agreement with another firm. Project outsourcing company delivers an end product right before the end of the deadline.
- By selecting a project outsourcing model, companies can free up the time of their employees. They can focus on core business processes without pressure.
Conclusion
In this digitalized world, most IT firms and other businesses would like to choose staffing agencies to accomplish a short-term project. Both staff augmentation and project outsourcing models are worth hiring. Depending on requirements, a company can hire one of them without an issue.
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