There are a growing number of IT projects where the need is always to reduce time, cost and money. The goal is always the same – reduce cost and improve operational efficiency.  Some of you might have already been building an in-house team and, most likely, failed at it (perhaps miserably). It is undoubtedly a risky and expensive proposition. With an in-house team, you also have a risk of being left behind as you will not invest in innovation or next-gen technologies. The success of software projects hinge upon whether these projects are completed within the stipulated time and within a defined budget (or maybe lesser budget than assigned).

Companies often get stuck with the legacy systems that are outdated and slow down their systems once it gets obsolete. They might be satisfied once the IT system was developed but eventually it gets obsolete. In such scenarios, companies turn to offshore staffing companies. There are 2 delivery models that offshore companies offer – staff augmentation and project outsourcing.

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Which delivery model is better for you?

To decide the better delivery model, you need to understand what each one offers.

IT staff augmentation enables the company to add resources who are skilled and suitable for the company’s requirement at that time. They are employed with offshore staffing company and can work as your full-time additional employees till the time you require or till there’s a project requirement.

Benefits of Staff Augmentation

• You have more control over the resources and can manage them closely
• They can align easily with your business processes as individuals can adopt easily and in a much faster way
• You can scale up or scale down the resources as and when required
• You can add resources with some other IT skills, if the project requires it
• You can hire people with specialized skills
• You can meet aggressive project timeline
• You can save on the cost that you otherwise spend for hiring full-time skilled resources
• Your existing employees feel less threatened with this model and feel secure for their jobs

Want to engage with an offshore staffing company for your software development project needs?

Disadvantages of staff augmentation model

• There’s an increased need to supervise resources hired using this model
• While you have control over resources, you have little control over the success of the project. It still depends on well you plan and manage the entire project. You must manage the deliverables and quality

IT project outsourcing enables a company to outsource the entire software project to an offshore software development company. There might be a situation where only a part of the project is outsourced to a software outsourcing company. In both the scenarios, the complete responsibility will be that of the outsourcer.

Benefits of IT project outsourcing

• You can follow the industry best practices with a partnership with a trusted offshore software development company
• You can reduce management overhead as the management responsibility is that of the outsourcer
• Responsibility of high quality and timely results is the complete responsibility of outsourcer
• You can stay focused on your core competency while the responsibility of the software project lies with the software outsourcing company
• In case you don’t have internal capabilities, the IT outsourcing company can help you built it

Want to outsource your IT requirements to an offshore software company?

Disadvantages of IT project outsourcing

• You have no control on the resources
• Your internal resources might feel threatened due to the IT outsourcing company. They might feel that their job is getting snatched
• You need to find a reliable and trustworthy IT outsourcing partner
• Your internal processes might be completely different from the software outsourcing services provider

Conclusion

It might be difficult to decide the better delivery model for your requirements. Your leadership needs to perform a cost benefit analysis to help you make the decision. You must consider a software services provider that has the experience and capability of providing both staff augmentation and IT project outsourcing. Find a software vendor who can deliver the desired results and has a team of industry’s best and certified IT professionals.

You can check our website for a complete overview of our capabilities.