Project Outsourcing vs IT CloudShoring
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Staff Augmentation Vs. Project CloudShoring…Which Engagement Model Should You Choose?

Businesses build a reputation over time, and that becomes their equity. One way you can create a reliable brand presence is through your ability to execute projects in good time, on budget, and the customers’ requests. Although leveraging the internal team capacity is the preferred solution, it is not always the ideal one. In fact, during some crucial projects, it can prove to be a costly and risky venture, particularly if an organization’s IT needs change rapidly.

In short, as businesses seek outside assistance to manage their workload, there are preferably two delivery models that can be considered: staff augmentation and project outsourcing.

staff-augmentation

Staff Augmentation

Most businesses would choose the staff augmentation solution provider where the experts are trained, and skilled employees provide you with the necessary staff.

The team in the staff augmentation blends well with your internal staff in the project. It is an affordable way out since their job is contractual where they work from within the office premises or from their home.

It is the method of recruiting people with particular skills at a fixed period for some specific project. While it helps retain a remote workforce at any given time, it has its own set of advantages and disadvantages that can help you choose the right staff augmentation services for business.

Top 5 advantages of choosing a staff augmentation model

  • Cost-effectiveness: Choosing staff augmentation is the best and cost-efficient method in the long term as it allows you to use temporary worker expertise without permanent workforce liabilities. It is based on the price model dependent on time and materials. How long one spends and what resources are used to produce the result determines the company’s overall cost.
  • Lean Staffing: Workforce increase lets you retain a lean workforce, i.e., the right number of employees for whom the company is accountable and whose skills are indispensable.
  • Expertise transfers get easy: If you recruit senior practitioners on contract as a part of IT project outsourcing, it allows the staff to benefit from the most, but without incurring additional upskilling costs that the company would have otherwise incurred.
  • Zero internal resistance: Since most workers work in the company for a short period, their resistance to work pressure will be relatively weak. It serves the dual function of getting more hands-on on the deck without having to think about the organization’s opposition.
  • Professional services: When you settle on a Staff Augmentation Model, you know that you only employ the best hands on the deck for a specific project, the most advantage of which is that you can draw on skills and resources! It gives the project result a competitive advantage that each organization looks for.

 The downside you should consider

  • Training is involved throughout aligning the resources with its processes, tools, and domain knowledge.
  • If there are severe flaws in an organization’s internal processes, it will hurt the staff augmentation resources, just as internal employees.
  • There may be an increase in the demand for services but no corresponding significant improvement in the cost structure.
  • Adding more money through IT staff augmentation would increase cost and complexity. More supervisors or managers would be required to handle the increasing number of resources effectively.
  • Companies are expected to ensure that staff augmentation tools are not considered workers.

IT project outsourcing

The ClouShoring of projects helps a company to carry out whole projects using other companies’ capital. In certain instances, this may also take the form of an ‘out task’ in which particular duties can be outsourced to a staffed subsidiary team and controlled by the outsourcer.

The CloudShoring strategy of the project enables businesses to benefit from external experience, cost control, and risk reduction to focus on internal capital on core activities.

Top Advantages of the IT project outsourcing

  • Elimination of training costs: the outsourcer is responsible for training and skill growth.
  • Best practice: the use of best practices by an outsourcer who meets best practices can be achieved easily. Outsourcers are responsible for investing in implementing, preserving, and developing best practices.
  • Scalability: Just as workers increase resources can easily be added or subtracted, project CloudShoring can also be quickly accelerated.
  • Size savings: substantial leverage is rendered when massive contracts with outsourcers are negotiated. For project work within their core competencies, outsourcers have their internal economies of scale.
  • Retains the core business’s emphasis: As the outsourcer is responsible for producing results, corporations should concentrate on products and their core businesses.
  • Potential for legal redress: When a project is carried out internally, the organization is responsible for any project delays or liabilities. And when there is IT project CloudShoring involved, contracts are usually designed to remove the risk from the outsourcer.

 The IT project outsourcing downside

  • The outsourcer and not the organization is responsible for managing all capital and high-level processes.
  • Resistance from internal staff because they fear that the outsourcing of projects could reduce the internal team.
  • It is tough to determine the efficiency of outsourcing companies.
  • Since smaller projects in this model are comparatively economical, outsourcers may sometimes hesitate to take on such projects. You might also charge a premium.
  • It is difficult to combine this model with specific and complicated internal processes.

Choosing the best Model: Staff Augmentation V/S. Project Outsourcing

If you wonder which system architecture would be suitable for your business, it is true that, while increased employees better meet some requirements, project externalization is ideal for some others. In certain situations, a hybrid solution would better suit your project. Choosing the correct delivery model can be a difficult option. It is safer to seek an IT consulting company’s support if you can’t make a choice internally. And last but not least, find a seller who knows your business and provides the best results.

The staff augmentation services and project CloudShoring services – both are offered by the expandFORCE services as we are enabling you with immediate assistance on-site or off-site for short or long-term IT projects.

Our qualified professionals work under your guidance to assist you in application development, management, maintenance, and support. You can quickly meet the project timelines with our professional engineering and project management tools. We give you trained and seasoned IT professionals for your long-term company needs without the costs, delays, or inconvenience of lengthy recruiting processes. If you are looking for a business that provides project management development services, Contact us!

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