Outsourcing in literal terms means scouting and hiring the right third-party team or an individual that can add value to your ongoing project. Outsourcing strategies such as staff augmentation, multi-sourcing, IT outsourcing, project outsourcing, process-specific outsourcing, and others, come as a relief to tackle the tasks that are sometimes hard for the internal team to deal with.
In this article, we will talk about the pros and cons of staff augmentation and project outsourcing.
This will give you a clear idea of which process to choose in any given situation.
What is staff augmentation?
Staff augmentation is an outsourcing process that involves a temporary addition of talent from an outsourcing company provider to your existing team. To augment the capacity of an organization, first, analyze your existing team and determine the skills and talent required to elevate the current business objectives. According to a study conducted by Statista, post the outbreak of COVID, the staff augmentation market size grew from $92.5 billion to $132.9 billion. Outsourcing companies train their developers, and the addition of these consultants will boost the morale of the team and help you reach your business goals.
7 reasons to choose staff augmentation
- It is cost-effective. As this is a temporary hiring process, the client team does not have to worry about covering the consultant’s insurance, tax, sicks leaves – basically all the responsibilities related to the employees on the payroll.
- This process is time-efficient as it saves the client’s side from the challenges of permanent recruiting and long-term commitment.
- Staff augmentation allows companies to maintain their lean in-house staff whilst adding specialists to their team. It allows the company to be flexible and gives a chance to upscale their team within a matter of days. To add to it, it reduces the pressure that the existing team is going through.
- This process significantly reduces the business challenges and caters to meet sharp deadlines without any hassle.
- The third-party hire enhances the productivity of the team, quality of the outcome, and boosts data privacy efforts.
- Although the consultant adds value to the team and project, the control still lies with the client. This helps in efficient staff management.
- The staff augmentation process allows you to focus on your core business goals whilst enhancing the service quality.
Cons of the staff augmentation process
- The client’s side can enjoy the perks of this process, provided they find the right talent at the right time. This search might take a long time.
- Adding a new member to an existing team can lead to clashes if their vision doesn’t match. All must be on the same line for the benefit of the organization.
- The third-party hire will take time to understand the company’s institutional knowledge which the in-house staff are already aware of. The client must enlighten them about the company’s history as well.
What is Project outsourcing?
Project outsourcing is a process when a company hands over the complete project to the IT outsourcing organization. Right from planning in the initial stage to the outcome of the project, the work is taken care of by the third-party company. They take complete responsibility for the business development. This model can be used when the assignment isn’t a high profile one or something that has a definite outcome.
As opposed to staff augmentation, project outsourcing does not allow direct control over the team. As per Statista, in 2021 the IT outsourcing market is expected to reach $ 359462.8 million. This exponential increase is the courtesy of the digital transformation and services provided by IT.
5 reasons to opt for project outsourcing
- One of the crucial benefits of project outsourcing is the solution and result of the projects lies on the shoulders of the third-party team.
- This model saves overall cost – be the office space chargers or any associated costs. The clients need not worry about any other process once they hand over the project to a third-party team.
- When you outsource your IT development project, the in-house team can focus on other business values and important projects. This makes the process value-effective.
- As the model hires specialists, the outcome of the project guarantees success. Overall, it reduces the business risks as the hired talents oversee the project to fruition with the best possible result.
- Project outsourcing ensures that things get moving quickly further reducing the time required for the development of the project.
Cons of project outsourcing
- Once the client outsources the project, they have little or no control over the project. The project now depends on the outsourcing vendors, moreover, the communication gap between both the parties can lead to frustration for the client-side. If the project is handed over to a which team that lies in a different time zone, the lack of communication can lead to the mismanagement of the project.
- In today’s age, data privacy is of the utmost importance. As the complete project is handed over to the vendor, customer data could be at the risk. And at times, there could be some hidden cost, which might appear at the end of the project.
How to set foot in the world of outsourcing?
- Ensure that you do thorough research of all the available outsourcing models.
- Discuss with your in-house team so that everyone is on the same line.
- Decide on a budget and stick to it.
- Scout the market at length to hire the best team or individual for your project.
- Ensure that they abide by your company’s vision.
- Give them a strict project deadline and ensure that they adhere to it. Read the papers properly before signing the contract.
Looking to outsource?
If you wish to enter the water of outsourcing, you can completely rely on us. Our experienced and diligent array of developers will make certain that your business needs are met. Need a specialist to handle your project or want a temporary addition to your team to enhance the business needs? Worry no more, App Scoop will provide all the resources and will guarantee that the project sees its desired outcome.
To talk to our experts, kindly contact: https://www.app-scoop.com/contact-us.html