Do you wonder what the key differences between IT staff augmentation vs Outsourcing vs hybrid approach are? Perhaps you want to choose the best option for your software development team. Moreover, do you want a cost-effective solution? Learn more about each model to make the right choice for you.
- Defining staff augmentation, project outsourcing, and the hybrid approach
- Positives & negatives of IT staff augmentation
- Pros & cons of IT outsourcing services
- Advantages & disadvantages of hybrid approach
- What are the costs of using IT Staff Augmentation vs Outsourcing vs Hybrid Approach?
- TL;DR: Staff Augmentation Vs Hybrid Approach Vs Project Outsourcing Model
If you are a company that specializes in software and application development, you may need extra help. Perhaps your in-house employees alone are no longer enough. So you may be debating between 👉 IT staff augmentation 👈 vs outsourcing vs a hybrid approach. Let’s explore each of these options in more detail to help you make the best choice for your company.
Defining staff augmentation, project outsourcing, and the hybrid approach
Let’s take the time to explain each of these IT service models, in order to gain a better understanding of what each one involves.
Staff augmentation meaning
IT staff augmentation services enable companies to hire temporary employees for short-term or long-term employment. This cooperation is usually on a project basis and does not require hiring someone permanently. The development process remains within the firm and project teams continue to work on their tasks.
Project outsourcing essentially means delegating a particular service task to a different company, that is competent enough to handle it. Moreover, in this model, the client’s partners manage the total process as per their specifications. The outsourcing partner supervises all the steps in the development process.
How does the hybrid approach work?
The hybrid approach for the purpose of our blog is combining IT staff augmentation and project outsourcing services. It enables you to gain temporary developers to work on a project with your existing team. While also being able to outsource various tasks that may not fit the profile of your business.
Positives & negatives of IT staff augmentation
Let’s take a look at some of the advantages and limitations of IT staff augmentation.
Advantages of IT staff augmentation services
Some advantages of IT staff augmentation include:
Maintain control over the development process
A big asset of IT staff augmentation is that you maintain control over the development process. Also, you maintain control over the developers & it’s your project manager that is leading the charge. Not to mention any project knowledge that is created during the development process, remains in-house. So you can use that knowledge for future projects.
Access to highly-skilled developers on-demand
When using this hiring model you gain highly-skilled developers on demand. Here at Swyply, we can rent out developers to join your team in as little as one week. Moreover, you can access pre-vetted developers who have a proven track record. So the hiring process via IT staff augmentation is strictly a formality.
Global talent pool – onsite, nearshore & offshoring
Along the same lines as access to highly skilled developers, you can gain tech talent from all around the world. You can have programmers work remotely with your team, from anywhere. You can pick countries that are known for having the best coders to join your team.
The IT staff augmentation model is a great way to 👉 build extended teams nearshore or offshore 👈. For example, if you are a company in the United States you can hire developers from Central or Eastern Europe as a form of offshoring. Whereas, if you are a company in the United Kingdom and you choose to 👉 hire temporary developers from Poland 👈, then this would be nearshoring. Either way, you have opened yourself up to a whole world of talent.
So we will talk about the cost of each of these models, in a paragraph below. But generally, hiring temp coders with IT staff augmentation gives you predictable costs. When you partner with Swyply, you only pay the daily rate of the developer you are hiring. There are no hidden costs. Moreover, you don’t have to worry about costs such as health insurance, taxes, vacation time, or sick leave.
These predictable costs can help your project management team stick to budgets. They will be able to avoid overspending by having the skills they need for the time they need. Not to mention with the right specialists in place, tasks will be completed efficiently and properly.
Limitations of IT staff augmentation services
Some key limitations when using staff augmentation:
- You need to onboard new hires
- May not be the right fit if you are looking to have a developer on a long-term & ongoing basis
Pros & cons of IT outsourcing services
There are numerous benefits when using 👉 IT outsourcing services 👈. The first one is your in-house teams can focus on tasks that are the core of your business operations. Another key benefit is that your internal team is less business, therefore they can focus on priority tasks. Moreover, you don’t have to spend money completing a project in-house that may not be a priority.
A big con when using outsourcing services is the fact that you have no control over the development process. You get back a finished project and no insight into how things were completed. In some cases, the quality of the outsourced project may not be up to the standard that you would like it to be. Lastly, sometimes communicating with IT outsourcing services can be tricky which can lead to delays.
Advantages & disadvantages of hybrid approach
Generally, the combination of IT staffing plus outsourcing services hybrid approach gives customers the best of both worlds. You are able to hire professionals while also delegating less important tasks to an outsourcing company. Moreover, similarly to IT staff augmentation, you don’t have to pay for additional office space.
One major limitation of the hybrid model is the cost may fluctuate which can impact the company budget. This may make running a project in this format expensive. Also, you will need a project manager or someone who can oversee all aspects of both IT staffing and project outsourcing.
What are the costs of using IT Staff Augmentation vs Outsourcing vs Hybrid Approach?
Let’s compare the costs of each of these team extension models. Also, where you can expect to save money and where you may pay extra due to additional fees.
IT staff augmentation pricing model
A great thing about the 👉 IT staff augmentation pricing model 👈 is that it’s predictable and doesn’t have any surprises. You can hire the developer you need and pay only the daily rate. That daily rate is multiplied by the number of days worked throughout the month and then you are sent an invoice. You have 14 days to pay the invoice and that’s it.
There are no set-up fees or recruitment charges. Moreover, you don’t have to worry about employment costs such as health insurance and taxes. Also, with Swyply, we don’t have to worry about employee perks as we got you covered with that as well.
Using IT staff augmentation is cost-effective staffing because you are able to hire a programmer for a specific time frame. This is usually to complete a project. Once the project is complete, you and the developer part ways. Your company doesn’t have to pay to keep the coder on the bench. He or she will only work for you as long he or she is making you money.
Lastly, 👉 staff augmentation can save you money 👈 as you don’t have to invest in an expensive recruitment process. Moreover, you don’t have to rent additional office space for new team members. Additionally, you save money on things like training or professional development as that is taken care of by the provider.
Costs related to outsourced IT company
Outsourced IT companies typically charge service fees for the work they perform. These fees can vary depending on the scope and complexity of the services provided. Common pricing models include fixed monthly or annual fees, hourly rates, or project-based pricing.
Moreover, there may be initial costs associated with transitioning from an in-house IT setup to the outsourced model. This may involve hardware and software procurement, system integration, data migration, and employee training.
Lastly, there may be hidden costs to consider. For example, if the outsourced company fails to deliver on SLAs, it can result in downtime, lost productivity, and potential revenue loss for your business.
Pricing of a hybrid approach
In a hybrid model, IT staff augmentation typically involves hiring additional resources on a temporary basis to work alongside the existing in-house team. The cost for staff augmentation is typically calculated based on hourly or daily rates of the resources hired.
While as mentioned previously the cost of project outsourcing is usually determined based on the scope of work, deliverables, and the vendor’s pricing structure. Some vendors may charge a fixed project fee. While others may charge based on milestones or time and materials. Rates for project outsourcing can vary significantly. This is based on the complexity and scale of the project. As well as the reputation and location of the vendor.
So you would need to consider both the costs associated with staff augmentation (e.g., hourly rates for additional resources) and the costs associated with project outsourcing (e.g., vendor fees). It’s important to carefully evaluate the requirements and expected outcomes of your project to determine the most cost-effective approach.
TL;DR: Staff Augmentation Vs Hybrid Approach Vs Project Outsourcing Model
Let’s do a quick breakdown of IT staff augmentation vs Project Outsourcing company vs Hybrid model.
- Staff augmentation adds temporary team members to your existing team.
- Project outsourcing involves outsourcing the entire project to an external company.
- The hybrid approach combines in-house, augmented staff, and project outsourcing for different project components.
Augmented staff members bring additional skills and expertise to help you complete your project more efficiently. They are managed and directed by your internal team and work under your company’s guidance.
Whereas outsourcing, you hire a third-party organization to handle the entire process from start to finish. The outsourcing company takes responsibility for the project’s execution. This includes resource management, timelines, and deliverables. They bring their expertise and resources to complete the project on your behalf.
Lastly, with the hybrid approach, some say you get the best of both worlds. This is because your core in-house team handles critical and strategic tasks. They are supported by augmented team members. While certain project components or specific tasks are outsourced to external vendors. It allows you to maintain control and expertise in-house while leveraging external resources for specific needs or to scale up quickly.
So are you convinced about which approach to take? Perhaps IT staff augmentation? Or maybe you have more questions? If so, 👉 drop us a line 👈. Let’s chat and figure out which IT service model is best for your company.