IT Staff Augmentation vs Outsourcing: Which Is the Best Option for Your Business?

 

IT Staff Augmentation vs Outsourcing: Which Is the Best Option for Your Business?

The IT industry has grown significantly in the post-COVID era. As technology and software evolve, companies are looking for ways to reduce costs and increase efficiency.  According to Statista, outsourcing generated about $395 billion in revenue in 2022. There has been an upward trend towards outsourcing your IT team or augmenting staff with temporary or contract workers. This can be seen as a way to cut costs and improve efficiency and increase flexibility. There are pros and cons to both outsourcing and staffing augmentation. In this blog, we have compared the two outsourcing strategies most frequently used by businesses staff augmentation and outsourcing. Let’s find out which is best for your business.  

What Sets Staff Augmentation And Outsourcing Apart?

IT staff augmentation is a form of outsourcing that is used to upgrade and upskill your software development team and increase their ability to meet business objectives. Without the liabilities associated with contract employees, you can increase the number of dedicated professionals in your development team on a short- and long-term contract basis.

Whereas, the practice of hiring a third party from outside a business to carry out tasks or create products previously completed in-house by the business's employees and staff is known as outsourcing. Outsourcing companies are more accountable for the project's quality and outcome. To achieve a successful relationship while outsourcing, it is crucial for both businesses to function on a foundation of mutual trust.

Pros and Cons Of Staff Augmentation Services

Pros:

1. Cost-Effective:

The cost of a software engineer is expensive, so augmenting it can be a great way to reduce costs.

2. Efficient Work:

IT staff needs to learn new skills, especially in areas that are not their core product knowledge. Adding more people to the training will help them improve their product knowledge faster.

3. Managing Workload:

IT staff is not always available when needed, so adding more people to the team can help with the workload.

Cons:

1. Lengthy Training Process:

Staff augmentation services are beneficial, but it takes time to train someone new on how to use your systems, and that training process can be costly in terms of both money and manpower.

2. Impulse Hiring:

IT staff augmentation can also lead you to hire people who are not as qualified as they first appear. You may end up with someone who has no idea how to do their job well—or perhaps even worse, someone who's not willing or able to learn what they need to know.

3. Cost Over Time:

Increasing your capacity could result in higher labor costs if it turns out to be a longer-term undertaking than you had anticipated.

Pros and Cons Of IT Staff Outsourcing Services

Pros:

1. Low Investment Costs: 

You don't have to buy the equipment, software, and services that you need. Instead, you can rent these things from a vendor that specializes in IT outsourcing. This can help you save your business a lot. 

2. Saves Time: 

With outsourcing, you don't need to worry about finding people who are good at what they do—the vendor does it for you! You just have to focus on making sure that your company is running smoothly and that your employees have everything they need to do their jobs well.

3. Reduces Risk: 

In IT staff outsourcing services, there is less chance that something will go wrong because fewer people are involved in the process. For example, if an employee fails to perform his duties, it would be easier to fix this mistake with help from someone else who understands how things work at your business.

Cons:

1. Quality: 

IT staff outsourcing services will only sometimes result in high-quality and timely services, as there are many factors that affect the quality of a service provider. This includes their experience and how much time they spend on research and development before starting work on your project.

2. Flexibility:

A change in your outsourcing agreement may cause disagreements between the client and the service provider.

3. Communication Problems:

Considering everything is discussed over audio and video calls, communication might be challenging. Any connectivity issue might result in a communication gap between the parties.

In conclusion:

There is no one-size-fits-all answer to the question of whether IT staff augmentation or outsourcing is the best option for your business. However, there are a few factors to consider when making this decision. From the size of the project to your budget, to the experience you require. Weigh the pros and cons of each option and make the decision that is best for you.

If you're looking to expand your IT team, or find top talent to join your organization, book a call with BrainInventory today! Our team can help match you with the perfect candidates for the job.