By Applaudo Studios




Project Outsourcing or IT Staff Augmentation?

In this article, we’ll help you decide which approach fits better for your company.

Today, companies are focused on making the most of their resources by optimizing costs and seeking technological efficiency by matching goals with actual results. 

When thinking about deploying a software solution, developing in-house capabilities to meet this request can be a costly and risky undertaking, considering that an organization’s IT needs are constantly changing. That’s why we see a steady increase in companies turning to outside services to meet these needs.

Companies generally consider two outsourced delivery models for completing their IT projects: Project Outsourcing and IT Staff Augmentation. You may think that both models are the same but we are here to explain to you the differences between both.

Project Outsourcing is outsourcing the full project work or some tasks to an external company, while IT Staffing brings virtual resources to the internal in-house IT team to help manage the work assignments and fill a gap.

Project Outsourcing and Staff Augmentation are concepts that are often confused, so it is important to define their characteristics and through comparison, highlight their differences. This way you will know which is the most convenient for your business. 

Software Outsourcing

Software Outsourcing is an arrangement in which an organization hires an outside software development agency to effectively perform all tasks of a software development project that would otherwise be performed in-house. Outsourcing software developers allows companies to develop high-quality software products cost-effectively. Typically, medium and large-sized businesses are accustomed to hiring skilled companies from the IT sector. Thus, they guarantee the quality and reliability of their systems. 

Project Outsourcing allows companies to outsource their entire software development process to an offshore or nearshore company so that they can handle the project and create a software solution.

Project Outsourcing can bring a company:

• Cost-effectiveness
Hiring a team of professional developers will give you an excellent software solution for your company that will be cost-effective. It is better to invest in a solution that will eventually benefit your company, rather than starting from zero, looking on your own to train your in-house team with skills and knowledge that they don’t have at the moment. It is more effective to hire a team that has exactly what you are needing.

• Outsourcing services of the entire project
It is easier to look for a nearshore development company that has the knowledge, the team, and the resources to take on software development processes for you. This way, you can outsource the entire project without having to invest valuable time or resources and focus on your core competencies.

• Full control throughout the process
Being involved with a nearshore company does not mean that you lose control of the project. In fact, for this type of partnership, you have to be involved every step of the way, in order for them to deliver exactly what you are looking for.

Defining Staff Augmentation

IT Staff Augmentation is a service tailored to expand your in-house team as needed. Through IT staffing, you assemble a team and assess their knowledge, skills, and abilities to perform a software development project, in order to establish what skills your team lacks and fill that gap by hiring new members. This helps companies immediately to enhance the scalability and efficiency of project development. 

With Staff Augmentation, you can add valuable expertise to your team by collaboratively working alongside qualified extra team members. The benefits of Staff Augmentation for companies include:

• Gain better control of your software development processes
As the person responsible for the entire project, you get full control of your team, the software development method they will implement, deadlines, among other things. 

• Cost reduction
Remember that you will work with your current staff and hire specific members at an hourly rate and by the project.

• Enhancing your workforce
Staff Augmentation allows you to add that extra member to your company, making them an official part of your workforce. They will complement any weakness you have.

Addressing your needs

Any company today needs software development services to optimize the way its business works. Everything will depend on the goals and points of interest of each company to choose between Project Outsourcing or IT Staff Augmentation. 

Project Outsourcing and IT Staff Augmentation have both proven to be valuable resources for companies interested in developing tailor-made software solutions. Large and complex software development projects require the use of heavy hardware equipment, software licenses, and the knowledge of expert Engineers, QAs, Designers, DevOps, among others.

If you are looking for a flexible staffing solution where you bring outside technical expertise to integrate into your existing team, we recommend opting for Staff Augmentation. You will temporarily expand your software engineering team with capable staff throughout a project or during specific phases.

If you are a company that needs a complex software solution and you don’t have management resources to deal with augmented staff, the best option is to outsource the entire project and work with a nearshore company. This way, you can work with expert software engineers and designers while your in-house team focuses on their main tasks.

We can help you

At Applaudo Studios, we can support your project in different ways through Project Outsourcing and IT Staff Augmentation. 

Whether you need to augment your existing in-house team with staff senior developers or develop your end-to-end solution on a required piece of your web and mobile software project, we are here to provide you with the expertise and vision that your project needs. 

From strategy and planning to development and design, our fine-tuned combination of processes and tools deliver you secure, efficient, and usable high-quality digital products on time and budget. How about we start with a Discovery Session? Let’s talk!

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