There are primarily two significant delivery models – In-house staff augmentation and outsourcing to a tech solutions provider. Today we frame the discussion to help you understand the nuances, benefits as well as drawbacks of these two crucial business delivery models. Here we go!
Whenever there is a crucial IT project on cards, enterprises might think about strengthening their in-house IT team. However, the constantly changing business equations and project dynamics might translate this in-house IT team set up into a risky venture. Such situations increase the reliance or dependency on alternative delivery models such as staff augmentation and project outsourcing
As the name suggests, staff augmentation offers the liberty to add human capital to your existing workforce, depending upon the needs of a specific project. Some of the major benefits of staff augmentation are:
Complete control over workforce in-house
Proper coordination and integration with the team to work towards a singular goal
Minimal business risks
Meeting narrow deadlines for projects
Project outsourcing involves utilizing the IT assistance of an external service provider, thus minimizing operational and IT infrastructure costs. The major advantages include:
Reduction in recruiting, training, and on-boarding costs
Scalability of operations possible at minimal notice
Better focus on core business processes without worrying about the processes, protocols, infrastructure, and people power needed to execute your project
Perfect leverage in case of big contracts
Both the models offer a fair share of benefits along with respective drawbacks. Staff augmentation can prove to be training-intensive and involve overhead-management costs. On the other end, project outsourcing makes the integration of internal business processes quite difficult. Additionally, project heads completely lose control over their IT projects.
That brings us to the point, where there is a need for choosing between the two. However, embracing a hybrid strategic approach can prove to be a welcome change in this context. Depending upon the project requirements, companies can choose to either develop in-house competencies or hire talent from outside.
Interested to know more on engagement models that are agile as per your business needs? Then contact us at Neologix and we will be happy to help.