Staff Augmentation vs Project Outsourcing: Which One Is Better?
In IT services, the delivery of project on time is very important that is within budget and the project should specify the need of the clients. In house responsibility is a big pressure, but at the same time they are very risky and expensive. The demand of services of IT is changing very frequently. Therefore, many companies prefer either project outsourcing or staff augmentation, but before that you have to know what makes the two so popular among the companies. Below are the detailed points to understand them better.
Staff augmentation helps the company to increase their staffs. It actually double up the resources. As per the company’s requirements, they can either decrease or increase the resources and there is no liability of the full-time employees.
Pros of staff augmentation:
- For initial stage, it is an easy process
- There remains the control of the members and one can monitor the work daily.
- There is minimum risk
- The demand of commercial requirements is less
- There will be less internal resistance
Cons of Staff augmentation:
- Training depends on company’s tools, process and domain knowledge.
- There is demand of resource but no improvement in cost structure
- Flaws in the internal activities of organization, then there will be negative impact on staff augmentation.
- There will be increase in overhead management
In such case, company outsource the work to external service provider to minimize the cost of the personal business. It is a long term strategy which helps the company to outsource and be in the safe side.
Pros of project outsourcing:
- Reduction training cost
- Good work with negotiated outsource companies or candidates
- Reduce the overhead cost in the matter of management
- Outsource is responsible for management
- They are responsible to take care of the project and delivery of the work.
- Cost effective process
- Companies can focus on the end result of the goal of the business
Cons of project outsourcing:
- Assessment of the outsource firm is very difficult
- Price can become little speculative
Selecting the right way is very important. As per your company work and process, you need to decide which way to go and how you can think the best. It will actually help you find the right model and then go by that decision. It will actually help you understand the good business deal and you can deliver a great result. The companies work really hard to find which model works for their company and it will actually help you achieve good professional goals.