Staff augmentation vs. outsourcing 

Are you struggling to pick between staff augmentation and outsourcing?

Find out the scenarios and benefits for each. Pick the option that is best suitable for your business!

Staff augmentation tech talent
Definition of augmentation and outsourcing

What is the difference between staff augmentation and outsourcing? 

Staff augmentation is the practice of filling in gaps in a team’s expertise with additional members. This can be done by hiring temporary workers, or it can be done by contracting out certain tasks to external vendors. To be clear, this is not outsourcing.

The term “outsourcing” has become overused and is often used to refer to any kind of contract for services. There is a big difference between staff augmentation and outsourcing. Let us explain:

Staff augmentation, sometimes referred to as “hiring in-house” is when you bring someone on board to help your existing team. Moreover, bringing in new employees will fill in gaps that are present in your team. These can be team knowledge gaps, skill set gaps, or even experience.

Outsourcing is when you allow an organization to manage certain aspects of your business internally, without involving your resources. Business process outsourcing, is giving a specific aspect of your business to handle and manage.

This can be managing aspects such as:

  • creating a website or web application
  • managing social media accounts
  • etc.

Both approaches have their pros and cons, but if you want to keep your core team intact while you ramp up your business, it’s probably best to stick with staff augmentation.

Dedicated team augmentation

When to choose staff augmentation?

Here are the top three scenarios in which you should choose the staff augmentation model:

You need control over your project & business processes

When you see a need to manage, organize and control talent along with resources used during the project, staff augmentation services is a great solution.

 

 

skill gap

You have a skill gap

When you have in house developers that can do a chunk of the work but are missing some skills. We can provide you with a developer or developers that can fill that talent gap.

 

You want to increase efficiency & revenue

When you want to deliver a product or service quicker to market to increase your revenue. Adding additional working hands to your team will help you complete projects faster and therefore, increase your revenue.

Outsourcing solutions

When to select outsourcing? 

Here are some scenarios where taking advantage of an outsourcing company may make sense for your business:

You want to focus on core business operations

When you need the project done from start to finish. You don’t have time to manage, delegate etc. the tasks.  You want to be able to focus on core business goals, as opposed to this one project.

You are missing essential staff & management

If you do not have an in house team of skilled specialists such as Developers, Project Managers, QA Engineers, Scrum Masters, Product Owners, etc. Then staff augmentation model may not be the solution for you. You do not have enough existing staff to help the augmented team complete the project.

You have a fixed budget

In the outsourcing of work, the company offers a fixed price to a variable cost service. You are able to better budget and only spend a certain amount of money on your project. This can help you to spend more money on different areas in your business, as opposed to fixating on one project.

Is staff augmentation the right choice?

Pros and cons of staff augmentation services

Here are some pros and cons of choosing staff augmentation services:

Advantages of team augmentation: 

contracts

Flexible contract based on your actual needs 

We sign with you a contract for a minimum of 3 months. This initial contract can be extended at a later date. Moreover, we can start with a longer contract from the start if that is something you would prefer. Our contract will have a notice period of one month, in the even that something happens with your project.

reduced recruitment time

Reduced recruitment time & cost savings

When you use IT staff augmentation services, you are able to reduce the time of a traditional recruitment process. The traditional hiring model would allow you to add a new member to your team within 3 to 6 weeks on average. However, using the staff augmentation, you can gain a suitable team member with a few days or a week’s time.

short term or long term projects

Meet your deadlines

When you add developers to your existing team, that from the beginning help you complete your projects faster. Furthermore, we understand that in certain scenarios, you have a fast approaching deadline that you cannot meet with your existing staff. Moreover, not making a deadline or not finishing a project before the target date can lead to huge financial losses for your company. You can avoid these issues using our software developers to extend your team.

Disadvantages of augmentation services

onboarding new members

Onboarding your new team members

Contrary to popular belief, you need to onboard new members from a staff augmentation firm. This task is usually accelerated, in comparison to the onboarding process you may have when choose traditional recruitment.

Additional individuals to manage

Your project manager will have additional personnel to manage when you add augmented staff members. This does not have to be a disadvantage, if it allows your company to complete a project faster.

Postive & negative effects

Advantages and disadvantages of outsourcing 

Here are some advantages and disadvantages of outsourcing:

Advantages of outsourcing 

  • Focus on other business objectives and goals – you and your team can concentrate on what you do best.
  • Free up internal resources – you have employees, money, and other resources available to distribute to other tasks, as opposed to using everything for one project.

Disadvantages of outsourcing 

  • Poor quality – when you hand over a project to an outside team, you are never sure of the quality you will receive back.
  • Communication with your outsourcing vendor can be an issue – you have probably experienced this to some degree. You ask someone to provide you a service, and then there is a communication breakdown. Suddenly, no one is answering your phone calls or emails.
  • Data protection & privacy risks – when you outsource a project, you run the risk of privacy violations. Moreover, your information can be stolen, hacked etc. When you keep it in house, you can take numerous safety precautions.
What does each solution offer your company?

Let’s compare the basics – Augmented staffing vs. outsourcing

0

Purpose—what solution does each provide?

Staff augmentation model allows you to fill a skill gap in your company, on a time specific basis. Staff augmentation gives you the ability to empower your existing talent with new blood. Moreover, you have more staffing flexibility with this model, than you would be with outsourcing.

Whereas, when you pick the outsourcing model, they typically take on a project from start to finish. They do not use your internal staff or resources. Moreover, you are typically not looking to recruit for a position to fulfill particular skills.

0

Work structure—internal project vs. external team & project

When you use staff augmentation, temporary workers blend with your internal team. Moreover, they learn your company culture and interact with management. They are meant to improve and empower your existing team.

While outsourcing team does not blend with your company at all. Outsourcing is an independent team along with management. Moreover, all organization, communication, management, and procedures happen externally and may or may not be consulted with you, the client. You will be only contacted on a decision-making basis, such as when it’s time to turn over the project and give final feedback.

0

Onboarding—where is onboarding required?

Let us debunk a myth about staff augmentation, that new team members do not require onboarding. They still require onboarding, just like any new hire. They need an introduction to company culture along with communication and organization processes. The onboarding process is accelerated. However, new members they may not require machine learning, because they are experts in their tech stack.

Outsourcing teams, typically, have a discovery period. This where they will run their own investigations to learn what your project requires. They do not need to be trained by your team or monitored by your project managers. They have their own internal processes, that are generally of no concern to you.

Best practice

Why choose Swyply?

Here are some reasons why you should not only choose staff augmentation, but why you should choose Swyply:

in house developers

In house team of talented developers

We have an in-house team of highly-talented developers that you can choose to bring onto your team on a contract basis. Our in-house team consists of Front-End, Back-End and Mobile Developers.

Most of our developers have a minimum of 3 years experience in any given tech stack. However, if you need a Tech Leader or Team Leader, we can hire out this type of specialist for you. Moreover, we can provide you with Junior Developers to meet your project requirements.

Partnering software houses

Software house partners

In case we cannot find a developer from our in house team, don’t stress, we have partnering companies ready to help us out. We can borrow and hire out IT developers to you from 1 of 50+ partnering Software Houses. Just like our in-house developers, they possess various experience and programming knowledge.

We take care of this process on our end, and you get the specialist you need without the extra hassle and stress. So, we handle the communication and invoicing with the Software Houses. You do not have to worry about handling anything with a third party software house.

Staff augmentation service

How to Apply a Staff Augmentation Model in your Company?

Here is how our staff augmentation services process looks like:

1 First

What specific technical expertise do you require?

Determine what IT skills you are missing in your current team. Once you have these details, reach out to us with that type of IT developer you need. Moreover, you can provide us with more project details, scope of work and any other specifications that may be vital to find the perfect Developers for your team.

2 Second

We search for your developers

Once we know what skill set you need, we will search for individuals within our in house team. We can also look for IT candidates for you from our 50+ partnering Software Houses, to ensure we find the right candidates.

3 Third

Meeting software engineers via Blind CVs

When we narrowed down suitable candidates, we will provide you with Blind CVs for each one. This way you get to know each of them in terms of tech stack, career path up to this point and future aspiration. Moreover, you will be able to determine if their previous experience matches up with what you are looking for in an IT Developer.

4 Fourth

Video interviews with candidates

Based on your choices, we will schedule video interviews for you and candidates. You will carry out interviews with the IT specialists you have selected. Moreover, you can also request for our developers to carry out code tests.

5 Fifth

Come to an agreement, sign the contract & hire Swyply developers

At this stage, you get to select the Swyply developers that are right for you. Then we finalize the details and sign the contract. In this contract we will have outlined the agreed upon start date, the duration of the project and date of completion.

6 Sixth

Swyply developers work with your local team

During this phase, our Swyply developers work with your team on your project. Our developers are available to you exclusively for the duration of the contract.

7

Monthly status report

Every month, we reach out to you to check in. We want to make sure that everything is up to par when it comes to our cooperation. We will ask whether you have additional needs or requirements for your software projects.

8

Do you want to extend our co-operation?

A month before the end of the cooperation resulting from the contract, we will reach out to you, to see if you want to extend our co-operation contract?  Or has the project come to a close?

FAQ about augmented services vs. outsourcing

Here are some answers to your most asked questions about augmented services vs. outsourcing:

Learn More

Project-based consulting would be considered the opposite of staff augmentation. Project consulting can easily be compared with augmentation. While you get the same quality developers on any projects that you desire, no department is required to participate.

We provide two-week trial periods on our remote staff augmentation services, so you can choose from a range of remote developers or an entire remote development team. If one of our IT specialists is not the right fit for you, you have two options. Firstly, we can look for another developer, if the first one is not working out, and replace him or her. Alternatively, we can finish our cooperation, and we will not charge you for that two-week period.

The rate to hire one of our developers on augmented staffing basis varies on the type of expert and seniority level. Our hourly rates range from $30 to $100 per hour. So for example, $30 per hour is for a developer that is at the junior level, whereas, $100 per hour would get you a developer who has high seniority. This would be a developer that specializes in a technology that is in high demand on the market, but is short in supply.

Hire high-performing on-demand software developers

dawid
Feel free to fill in the form below or contact me directly at [email protected]. I’ll get back to you within a few hours!
Dawid Stasiak
CEO & Founder at Swyply

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