IT outsourcing is a practice that involves delegation of components of a web-based application development process. Plenty of outsourced services such as testing, coding and design can be used in development, although outsourcing comes with risks that are caused by the low control level from the client company.
That is why a company decides on staff augmentation vs managed services.
Information technology departments that need to implement new projects will need to outsource them to meet their goals as scheduled. IT outsourcing can be used to supplement the expertise of permanent employees.
The two models used to enhance the workforce include IT managed services vs staff augmentation. They are two reliable solutions that should be carefully evaluated and understood before choosing one that works well with the selected projects to fulfill the objectives.
Here are the specifications of the two models that will help firms choose according to their specific requirements:
Staff augmentation is an option that implemented when the company’s in-house team cannot fill the gap because of lack of particular skills that are necessary for project completion. The staff augmentation approach comes into play when an organization brings in outside qualified workers to work together with the in-house team and fill in the skill gaps for the particular project.
This approach allows companies to meet deadlines without compromising the project quality. Additional resources through staff augmentation also help to save the costs of internal hiring.
Augmentation outsourcing firms allow enterprises to assess their needs and hire employees according to the project requirements. Since there is no permanent commitment to this approach, employers can flexibly add or reduce the number of employees based on any changes in requirements. Staff augmentation helps to zero-in on earmarked areas in order to solve a problem.
Below are the advantages and drawbacks of staff augmentation:
Here are some of the drawbacks associated with long-term staff augmentation:
Managed services offer permanent control, high levels of business adaptation and feedback. The managed services approach is a traditional IT sourcing approach that offers solutions with minimal internal maneuvering and training. This is where the client company sources the maintenance of the system and also delegates all the aspects of the business application modernization project including support, and control of the main business affecting monitoring, reports and indicators.
The outsourcer holds all the risks involved in meeting the timelines and goals of the project. They have all the incentives to ensure the projects are completed according to schedule and the client’s satisfaction.
Here are the benefits of managed services:
Here are the disadvantages of the managed services approach:
There is no single versatile approach to development project sourcing for most companies. Some requirement can be executed well with managed services while others with staff augmentations. At other times a combination of the two approaches is what will work for the project.
The choice of managed services vs staff augmentation approach will depend on the hiring company’s assessment of their needs, budget and other essential requirements. Both models are highly reliable, but a well-calculated decision has to be made.
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