Business Scaling is the most efficient method of expanding your business in various domains but this requires a lot of effort ranging from workforce expansion to resource allocation. But various methods make it easier for companies to scale without bulk hiring which is staff augmentation and project outsourcing. These methods are explained and compared in detail for an in-depth understanding of their implementation.
What Is IT Staff Augmentation?
IT staff augmentation is a working methodology in which a company recruits IT professionals based on the shortage in their staff on a project basis. In this working method, the project is completed by the team itself with experts on a project basis.
Benefits Of Staff Augmentation
Some core features which make IT Staff augmentation the best choice for your project requirement are listed and discussed below in detail.
Streamlined Scaling
Scaling business requires resource planning for which the company needs to go through a series of expenses to onboard experts in a particular industry. This makes the task cumbersome but with staff augmentation, you can add experts on required positions for project requirements and later extend the contract as per the project needs.
Manage Quick Requirements
There are instances in a company when you receive an order for a particular requirement and you do not have a sufficient workforce to deliver the required project. So IT staff augmentation is a reliable choice in such instances as you can contact firms and people well trained in this industry with ample experience to provide top-notch work.
Control Over The Project
Even if you are hiring the project manager or the developer still your control over the project succeeds over the augmented staff which keeps you as the man in control.
Cost minimization
Hiring permanent employees is an expensive decision as you need to take care of all miscellaneous expenses along with the hiring whereas you can attain well-trained IT staff for your requirements easily.
Cons Of Staff Augmentation
Along with multiple benefits, some cons can arise in augmented IT staff implementation.
Latency In Team Sync
It takes a considerable amount of time for augmented staff to sync with the in-house team due to the versatile office ecosystem which might result in a bit of delay in gaining work efficiency.
Training Time
Training staff regarding the work policies of the staff is a cumbersome process and takes a considerable amount of time.
What is Project Outsourcing?
Project Outsourcing is a working methodology in which the project is outsourced to another company that completes the project with its team and at a lesser cost. This is most effective in outsourcing to remote locations
Benefits Of Project Outsourcing
Project Outsourcing offers multiple benefits to its users and some of them are listed below.
Trained Workers
The entire project is transferred to the outsourcing company which reduces the stress of training the employees as they have well-trained employees already working in sync over multiple projects.
Cost-effective
The cost of operations depends on multiple factors including labor costs and in some countries, these costs are significantly low which is the major reason companies prefer using project outsourcing to cutting project costs.
No Geographical Barriers
The employer doesn’t need to worry about accommodation and availability of the staff and can outsource the project to any abroad locations depending on the company’s portfolio.
Cons Of Project Outsourcing
Along with various benefits, there are some cons of project outsourcing which are listed below.
No Quality Assurance
Quality assurance is deeply risked while outsourcing the project because you do not have your team working on the project so you cannot ensure if the project is up to the mark in aspects of quality and code. Mainly in software development, outsourced code may not be efficient code.
Less Control
In project outsourcing the employer has less control over the project because the team working and implementation are managed by the outsourced firm.
Final Statement
Both IT staff augmentation and project outsourcing have their pros and cons but the choice mainly relies on two factors which are the project requirements and cost-effectiveness. So you can make the final choice based on them.
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