When choosing the right IT model for your business, it’s important to understand the differences between staff augmentation and team extension. This article will discuss each team extension model in great detail to help you make the best choice for you.
- What is the IT staff augmentation model?
- IT staff augmentation vs Managed services
- IT staff augmentation vs Outsourcing
- IT staff augmentation vs Staffing Retainer
- IT staff augmentation vs In-house development team
- IT staff augmentation vs dedicated team
- IT staff augmentation vs consulting
- Epilogue of IT staff augmentation & other extension models
As a business owner, you may be wondering whether IT staff augmentation vs team extension models – which one is the right fit? Which one can be used to help me increase my IT staff numbers and improve business capabilities?
You want to be able to do all this without the need to invest in the development of an entire in-house team. Let’s go over each of these models. Each model has its own unique benefits and disadvantages. Plus there are some overlapping similarities among all team extension models.
But it’s in understanding the differences that are essential when deciding which approach is right for you. So, let us compare IT staff augmentation vs other team extension models.
What is the IT staff augmentation model?
IT staff augmentation is a model of IT staffing that provides skilled professionals. Typically software developers are provided on an as-needed basis. They will join a company for project-based work.
This model is ideal for tech companies that do not need a particular skill set full-time. They may need a software developer for a specific project and that’s it. They do not want to keep someone full-time and pay for them to sit on the bench.
IT staff augmentation allows businesses to respond quickly to changing market conditions. Plus they can scale their business to meet customer demands. They can achieve all this without having to invest in additional long-term staff.
The 👉 IT staff augmentation model 👈 can help businesses save money by avoiding the costs associated with hiring and training full-time IT staff. By leveraging the expertise of a third-party IT staffing provider, businesses can quickly and cost-effectively access the skills they need to complete their IT projects.
What is the difference between onshore, offshore, and nearshore staff augmentation?
You can use 👉 staff augmentation services onshore, offshore, and nearshore 👈 depending on your tech company’s needs. Let’s break down the differences between these terms to help you pick the best option for you.
Onshore staff augmentation is hiring developers to help with software development that are located within your country. Some refer to this type of solution as ‘onsite’ which means that software engineers either work with you in the office or join you remotely from a nearby location.
Whereas, offshoring identifies companies located in a different location and most likely a different time zone. Whereas, nearshore, means your external programmers come from a neighboring country.
An example of an offshoring staff augmentation model
If you are a software development company that is looking to hire more coders. And let’s say you are based in the United States, you may decide to fill that skill gap with programmers from Europe. This is offshoring as there is a significant location and time difference.
An example of nearshoring staff augmentation services
Whereas, with nearshoring, you may be a tech startup company based in the UK and looking to hire additional coders from Germany, Poland, or Ukraine. There is little to no time difference and these countries are neighboring. They are in much closer proximity hence the term nearshoring.
IT staff augmentation vs Managed services
So you may also be debating whether to choose from one of the many staff augmentation vendors out there or perhaps give managed services a try. Well, let’s break down managed services model, so that you better understand which might be the best option for you.
What are managed services?
A managed services provider is responsible for managing all aspects of IT. This includes monitoring, maintenance, and support. Managed services are ideal for companies that need two things:
- full-time IT staff but do not have the resources to build an internal team
- need an IT environment that includes hardware, software, and applications
The key 👉 advantage of managed services 👈 is that it allows companies to outsource their IT operations. This frees up their internal resources to focus on more strategic initiatives.
Managed services vendors are also able to provide specialized expertise and knowledge that may not be available in-house. Plus they can provide IT infrastructure to help you meet new market demands. This can be especially beneficial for companies that are looking to implement new technologies or upgrade existing systems.
This solution can be more costly in comparison to other models. This is because they are providing your company with additional staff plus resources. This is a more expansive solution than other team extension models.
Example of Managed services model
An example of managed services is outsourcing a part of your IT projects to a third-party company. So if you no longer want to deal with the mobile application development process, the managed services company can handle that for you.
Another example would be if you need help with cybersecurity because you do not have the internal resources to deal with it. But you still want to take on these types of projects. A managed services provider can help you in this type of situation.
Also, managed services can provide you with the necessary infrastructure that you need in order to fill project needs.
IT staff augmentation vs Outsourcing
Let’s take a look at some of the differences between staff augmentation vs software outsourcing.
Definition of project outsourcing
Outsourcing is a model of IT staffing wherein a company hires a third-party vendor. This third party will take over certain aspects of its IT operations. This model is ideal for companies that have specific IT needs. But they lack the resources or expertise to handle those tasks internally. Or they simply need an IT department to help with certain tasks, but it is not the main priority of their business.
The outsourcing model allows companies to focus on their core business while leveraging the expertise and resources of an outside vendor. The disadvantage of outsourcing is that it can be expensive and requires a significant amount of time and effort to manage.
Example of outsourcing:
For example, you may have a project that requires a company that specializes in Internet of Things products. You internally, only work on application development. You can outsource this project to a third party to complete. They will complete the project for you using their own resources. Then you will cover the bill and have completed the project.
An 👉 alternative to outsourcing is IT staff augmentation 👈. The staff augmentation model involves hiring additional IT staff to supplement the existing team. This is a great option for companies that need to quickly scale up their business. It also allows companies to access specialized skills from a wider talent pool. Tech firms can gain expertise that may not be available in-house.
IT staff augmentation vs Staffing Retainer
IT staff augmentation services and a staffing retainer may seem very similar in terms of being able to fill your talent gaps. But there are some differences that you should be aware of before choosing either to partner with.
How does a Staffing Retainer Company work?
A staffing retainer is another model of IT staffing. This is where a company signs a contract with a third-party staffing agency to retain a certain number of staff members for a set period of time.
Advantages & Disadvantages of a Staffing Retainer
The advantage of this model is that it allows companies to get access to skilled professionals on an as-needed basis without having to commit to long-term hires.
The disadvantage of staffing retainers is that it can be difficult to find the right professionals with the required skillsets, and the cost can be higher than other models.
Some other disadvantages of staffing retainers include:
- not having control over the quality of staff provided
- lack of consistency when it comes to the quality of work that was carried out by additional staff
- project delays
- not being able to access the same staff in the future if need be.
Example of Staffing Retainer in the IT industry
Let’s explore what staffing retainer would look like in reality. You may need a team of 4 developers for 6 months and you need them to work on your project for a minimum of X hours per week.
A staffing retainer company will provide you with a team of developers and they work the minimum amount of time required by you on your project. Once the contract is up they will move on. They may not be exclusively available to you and may work on various other projects at the same time.
IT staff augmentation vs In-house development team
An in-house development team is a model of IT staffing wherein a company builds an internal team to manage its IT operations. This model is ideal for companies that need full-time IT staff and have the resources to invest in building an internal team.
Pros & cons of an in-house software development team
The advantage of an in-house development team is that it allows companies to have complete control over their IT operations. Also, they are able to respond quickly to changing market conditions.
The disadvantage of an in-house development team is that it can be expensive and time-consuming to maintain. With an in-house team, you are paying developers a salary regardless of whether they are attached to a project or not.
When to use an in-house development team?
So if you are the owner of a software development company chances are for everyday tasks and projects, you will want to use an in-house team. The in-house team is really the foundation of your company and it’s the people that keep things moving. Unless you are a one-person show, you need a team to help grow your business.
Why do you need an in-house team even with team augmentation services?
An alternative to 👉 an in-house development team is IT staff augmentation 👈. This model involves hiring external IT professionals to supplement an existing IT team. This model is ideal for companies that need additional IT resources but don’t necessarily want to maintain them permanently. IT staff augmentation can provide you with highly talented programmers for a specific project without keeping them permanently.
But it’s important to remember that having in-house staff is a necessary component before using a staff augmentation agency. You are adding additional software developers as a supplement to help complete a project. They are not meant to take on the entire project for you.
Example of an in-house software development team
Your in-house software development team should consist of programmers, QA testers, project managers, product owners, designers, etc. They all work together. The permanent employees will help develop a web application, a mobile application, or perhaps a website. They are hired permanently by you and typically work full-time.
These in-house team members can work remotely or work in the office, depending on how things function in your company.
IT staff augmentation vs dedicated team
Another popular outsourcing model that you can choose from to meet your IT company needs is 👉 hiring a dedicated team 👈 to help with your project.
What are dedicated teams?
Dedicated Teams is another business extension model. It involves the relationship between the client and the service provider. This option provides software development specialists to clients for the long term. Typically they will provide the client with a whole team.
So this team will include technical staff such as remote developers and QA testers. Along with project management and anyone else you may require. They will work with you on a contract basis, just like any of the other outsourcing models we mentioned.
Example of a dedicated team
An example of a dedicated team would be hiring a third-party team to complete a development project that may or may not be the core of your business. For example, you focus on websites & eCommerce shops but need a team for all the web app development requests you are getting recently.
Or you have a really big project that may require more than one team to help you tackle the development process. Such as a backend development team and a frontend development team.
IT staff augmentation vs consulting
So, 👉 consulting services 👈 is a very different team extension model in comparison to some of the other ones we mentioned up above. This model does not enable you to hire more coders to join your engineering team. Instead, you are able to hire someone to help you achieve milestones with the team you already have hired.
What is consulting in the IT industry
Consulting in the IT industry is asking a third party to give you advice and guidance on how to achieve business goals. An IT consultant can help you plan, strategize, implement, and analyze results that should bring you closer to finishing software development projects.
They will help you steer a particular project in the right direction or even your entire business in an opportune direction. But it’s important to understand that you are not hiring these consultants to work for you internally. They will not work with your software development team. The consultant will more likely work with a CEO or project management to help provide direction and then step back.
They are the lighthouse steering you where to go in the dark with the development process. But they do not move from their post.
Example of consulting
An example of consulting is if you wanted to expand your software development company by adding another service. Let’s say your current expertise is in web application development. But you want to expand to creating Internet of Things products. You can reach out to a consultant who can guide you on how to best maneuver that. They will let you know who to hire, how project managers can structure these projects, etc.
Their goal will be to help you grow your business with this new avenue. They want to help you make that transition easier and minimize growing pains.
Epilogue of IT staff augmentation & other extension models
In conclusion, there are several different models of IT staffing that companies can choose from. These models include:
- Staff Augmentation vendor
- Managed services
- Outsourcing Company
- Staffing retainer
- In-house development team
- Dedicated teams
Each model offers a unique way for businesses to extend their capabilities. Along with increasing their staff without investing in an internal team. Each model has its own features, so it is important to consider all options before deciding which is the best approach for your business.
Which staffing model will best help me with project execution?
IT staff augmentation is ideal for organizations that need skilled professionals on an as-needed basis. While managed services are better suited for those who require full-time IT staff.
Outsourcing agencies are a good option for those who need specific IT tasks completed but lack the expertise or resources to do it internally. While staffing retainers are good for short-term projects. An in-house development team may be the best option for those who need full-time IT staff and have the resources available to invest in building an internal team.
You may also consider a dedicated team to take on your tech projects externally, without using any of your internal resources. They will finish the project with the support of their own internal staff of developers, a project manager, QA testers, etc. The last option that you can choose from, is consulting. Consulting can help you with project completion, being more cost-effective, and reaching business goals.
No matter which model you choose, it is important to ensure that you have the right team in place to meet your IT needs. It is also important to consider the cost of each model and the long-term implications of each option. By taking the time to research and evaluate the different models, you can make an informed decision that will help your business succeed.
If you are interested in the staff augmentation model and want to know more, 👉 drop us a line 👈, and let’s have a no-obligation chat.