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January 22, 2020

What is the difference between dedicated teams and augmentation outsourcing models?

IT outsourcing has many advantages over hiring one’s own team and comes in two main models: staff augmentation or dedicated team outsourcing. Most companies are wondering what is the main difference between these two models. And which model is better to choose for the company?

Before you choose your IT outsourcing partner put the list of pros and cons. Although outsourcing is profitable, maybe you need a specific type of engagement. Below we bring you the answers to all the questions that you had about staff augmentation or dedicated team outsourcing.

Which of these two models is better for your company?

If your company has needs for temporary software developers, IT outsourcing comes as the rescue crew for various sizes companies. This type of “employment” optimizes the time and costs of the project, while people permanently employed in that company can focus on their main task without the distraction caused by IT troubles which they cannot understand.

In this way, you can hire excellent, knowledge-based and skilled IT experts, without additional costs of the hiring process. The main advantage of outsourcing is that you can determine a period of “employment” these experts. If you have a project that is ongoing, you can hire external staff by outsourcing too. There are no limits for outsourcing, you decide how many people will be present in your outsourced team and how long the contract will last.

With the outsourcing team, you also pass IT responsibilities in the hand of the third party. In the modern world of business, staff augmentation and outsourcing a dedicated team of experts is very popular with good reason.

But where is the difference between these outsource methods?

Staff augmentation

Staff augmentation is a model of outsourcing service. In this model, a third-party company provides engineers and experts in the form of external hire. This service is regulated with a contract. Basically, you can have your in-house team of experts extended by third-party specialists working on contracts during the project. Now, your permanent workers can work side by side with experts in the IT area and give them instructions directly. This is the best way possible for developing new software.

After the project or contract is finished, you don’t need to engage with those teams. Thanks to staff augmentation, your company can reduce costs related to recruitment, payroll services and project implementation. This model of partnership is easier to handle than terminating an employment contract.

The bottom line, staff augmentation allows you to work with IT specialists in the same office, but on a certain period of time. For this type of outsourcing, the client needs to provide office and other commodities for the outsourced team.

Dedicated team outsourcing

Outsourcing a dedicated team means partnership with a remote IT outsource house that takes care of your project with its team of programmers and software engineers.

This is a broader partnership than team augmentation and covers a wide range of software-related services. You can hire a whole team, or just one person to handle with: analysis, design, UI/UX design, quality assurance, project management or support and maintenance.

The main task of a dedicated team is to achieve the best possible results for its clients. Outsourced software or IT house is more than a trusted partner and temporary service provider. When you choose this type of outsourcing model, you chose an independent team.

Unlike staff augmentation, for outsourcing a dedicated team you do not need to provide an office. You work closely but from a remote distance.

The bottom line, outsourcing a dedicated development team means that you can handle over all your IT worries to external experts. All that without additional costs for office space and other commodities.

Choose based on your needs

Both of these methods have their advantages and both of them are suitable for various sized companies. No matter what type of your company is, small business or large enterprise corporation – you can easily hand over your IT duties to highly educated and recommended experts.

Collaboration with the outsourcing team means working with experts even if you have a limited budget. Especially if you hire a dedicated team. This model of outsourcing may be just what you need for your company.

On long-term project can bring you more than saving money. It also brings you to a decrease in stress, worries and sleepless nights, and that money cannot buy. Outsourcing agencies bring you qualified and skilled workers that can provide different types of solutions for your IT sector.

IT outsourcing is well developed and can bring you a number of professionals from different domains of the IT industry. The company that hires them pays for the project without constant obligations.

In this way, you can hire a whole development team that will be focused on developing your custom software. All of the external team members working full time on product development, while you can monitor their development process.

Consulting companies can offer you a perfect team of dedicated developers, alongside with application development and content management.

Staff augmentation services and dedicated developers bring you perfect skill sets at a lower cost. The best thing with this type of employment is that the intellectual property of the product that they made is completely yours.

Photo by Dylan Gillis on Unsplash

In the end, what is with offshore software development?

There is one more term that you need to know, and that is offshore development. Offshore custom software development refers to software engineering services from a distance. That means that one company for its unique and custom software solution hires the team of developing experts from another country.

That makes the whole process of software production cheaper, decreasing spending on a budget. Offshore software development is outsourcing tasks to a third-party software agency or developers. Such services may include web development, web app development, and mobile app development.

Most companies decide to choose offshore outsourcing companies from India, China and Balkan countries. These experts have imposed themselves as leading in various fields of IT industries. Recruiting offshore dedicated developers enables you to engage the best tech skills in the industry.

If you choose to hire an outsourcing software development team, keep in mind that you will hire high skillful development team according to your specific requirements. But if you hire an offshore dedicated team you will save the company budget.

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