IT team augmentation is an increasingly popular approach to IT outsourcing as it provides increased agility and scalability in comparison to times when digital products were developed using traditional methods. IT team augmentation utilizes managed services and staff outsourcing in conjunction to provide a more efficient, cost-effective solution for businesses looking for IT solutions. The managed services model allows IT teams to access resources remotely, and contract workers can provide the necessary expertise on certain projects or skill sets. On the other hand, staff outsourcing can bring costs down as dedicated specialists are available at low rates due to local economies of scale.
Both IT team augmentation models have their own merits and demerits that should be considered before making a decision about how best to meet IT needs. It is important to note that both models have the potential to be used successfully but careful planning and analysis must be done in order to make the right choice for any organization.
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Staff Augmentation
Staff augmentation is increasingly becoming a popular method of outsourcing, especially in the IT sector. Staff augmentation services are an ideal solution for growing companies that need to fill in certain niche roles with highly skilled labor. Employing external personnel allows the existing department to reap the benefits of a more specialized and experienced team without needing to bring on permanent staff. As Statista predicts, the global outsourcing market is expected to reach $413.7 billion by 2021, and a sizable portion of this growth is undoubtedly attributed to staff augmentation’s increasing popularity.
Benefits of Staff Augmentation
Staff Augmentation has a number of important advantages:
- Increased output. Staff augmentation ensures that the company gets experienced professionals who use their expertise to generate high throughput. The tech experts deployed through this model ensure high-quality output, which means higher profits.
- No delays due to intermediaries. Employees can complete tasks in no time and this increases the speed of delivery while maintaining quality simultaneously. Every project is carried out efficiently, as all members are highly skilled at their respective jobs helping enhance overall efficiency.
- Full control. Keeping project control is essential when engaging in staff augmentation. When outsourcing staff, you get to choose the personnel that best suits your project needs and requirements. This provides the added benefit of being able to continue running the project according to your own preferences. Moreover, you will have much more control since you have full responsibility over who will work on it and its final deadline. As an extra bonus, you can even make adjustments such as new features or trajectory changes whenever necessary.
- Flexibility and scalability. Staff augmentation is a lucrative model in today’s global environment, especially due to its capability of providing resources on demand. Companies can have access to experienced professionals from worldwide locations to help them tackle short-term projects or expansion needs. The ability to scale up and down personnel support according to the requirement enables organizations to focus on their core objectives and maximize their investments.
- Easy employment. Using staff augmentation services allows IT companies to find suitable personnel quickly and easily. Without the headache of time-consuming recruitment procedures or going through numerous resumes, companies can have their team fully staffed in no time.
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Disadvantages of Staff Augmentation
This approach also has its drawbacks:
- Costs in the long run. Highly-skilled IT staff augmentation cost relatively less than permanent onboarding of resources. Initially, it is a highly cost-effective and desirable choice; however, in the case of an unexpected delay or prolongation of a project, it may result in higher long-term costs due to its temporary nature. Companies must consider all possible scenarios before committing to highly-skilled IT staff augmentation for long-term projects.
- Employee training. Bringing a new member into an existing team can be accompanied by many difficulties. Rigid and pre-existing internal systems that staff may not be aware of could prove to be a real challenge for the newcomer, as it takes extra time to set up these processes.
- Difficulty in finding a service provider. It’s important to recognize that when a new project requires personnel with a specialized skill set, it can cause major delays in progress if this resource isn’t easily found in the marketplace. This can be avoided if companies have already invested time and resources into developing their own in-house personnel with expertise in this field.
Managed Services
The model bridges a customer with a provider, wherein the provider enlists a specialized team of professionals to take up responsibility and control of the IT infrastructure. This third-party hired team brings in their expertise, cutting-edge technologies, and structured processes to meet desired expectations. To ensure clear communication between both parties, they draw out a contract that outlines each detail from the goals to deliverables to timelines. By doing so, companies are able to concentrate on their core business strategies without worrying about technology needs, making way for better services and improved outcomes at ultimate cost-effectiveness.
Benefits of Managed Services
The benefits of Managed Services include:
- Saving money in the long run. The model provides for long-term cooperation and the company will save money on this long distance. Plus, the customer will clearly understand their development costs at each stage.
- No need to waste time managing. The team is managed by a separate manager. He also conducts a preliminary evaluation of the results. The customer sees only the results in the agreed checkpoints in order to understand that everything is going according to plan.
- Full support. If something does not go according to plan, the team will fix the problem without your participation.
Disadvantages of Managed Services
Managed Services also have their drawbacks:
- The risks associated with the company. Not everyone offers high-quality services, so before starting cooperation, it is worth double-checking the company’s reputation and working out the contract with the highest quality.
- Less flexibility. Making changes quickly is more difficult.
- Loss of complete control. You need to trust a third-party company, which can be tricky.
Team Augmentation vs. Managed Services Comparison
Both methods have their advantages, but which option best suits a business’s needs depends on the size and scope of its operations, as well as budget considerations. With Team Augmentation, businesses benefit from increased agility and on-demand expertise in specific areas such as software engineering or product development. On the other hand, Managed Services provide total coverage for IT infrastructure with minimal disruption to existing teams. Ultimately, each organization must weigh the pros and cons of both methods to determine which solution will best meet its requirements.