Many companies find their expertise in taking up IT projects and delivering quality work to their clients. However, sometimes unexpected or new projects might appear, due to which the workload might feel like a bit too much for the company. In such cases, businesses can outsource their IT projects or use staff augmentation. For definition purposes, IT outsourcing means asking external service providers to deliver an IT-enabled business process for you. On the other hand, staff augmentation temporarily uses outside resources to fill up or expand your firm’s capacity so that the workload becomes manageable. In this article, we will explore the pros and cons of IT outsourcing vs IT staff augmentation to help businesses make informed decisions about how to manage their IT resources.
If you need clarification on whether you should choose IT outsourcing or staff augmentation, you have come to the right place. We will break down both these options for you and let you know about the benefits and drawbacks of each option. The first thing you need to do before you decide is to check your team’s capacity and company goals. For example, augmentation might be a better option if you want to exercise a particular level of control over the project staff. If, however, you need a project to get done quickly without there being a need for internal management, then IT outsourcing will be ahead for you.
Benefits of IT outsourcing
There are many benefits of IT outsourcing for companies. For one, it takes away your workload for a project. When you outsource a task to someone else, you do not need to manage them or ask them for updates every step of the way. Just tell them your expectations, and they will handle the rest. Other than that, it does not require you to train anyone, unlike staff augmentation. The team you will outsource to will already have expertise in the field of IT and will know how to take your project forward. The team you are outsourcing to is also more likely to finish the project within the given deadlines. Often, when the work is done internally, deadlines can be extended and are more negotiable since it is your workplace. Companies are usually more responsible for meeting deadlines when it comes to external clients. Lastly, outsourcing a project is always beneficial when the skills needed need to be found internally. It overcomes the lack of internal capabilities. You can always outsource if your team needs to be made aware of how they should get a job done.
Drawbacks of IT outsourcing
While sometimes not having to look at the tiny details of projects might look like a benefit, it is also a drawback. When companies outsource their work, they give up control over a project. This means there is a big chance the work delivered to them is something other than what they like. Everything is up to the IT company now. Moreover, sometimes there needs to be a solution aligning outsourced projects with internal systems. The IT team will carry out a project as they see fit. They might need to be made aware of the procedures in your company which might cause a problem for you later on. Also, IT companies are usually less inclined to take on small projects, which means you have to rely on them for more significant projects, which becomes riskier.
Pros of Staff Augmentation
Making use of staff augmentation to complete a project can be beneficial for the company in many ways. To begin with, it allows them to exercise control over the project, which means everything done will be according to what they want. Apart from that, there is more room for accommodation. When the project is internal and needs to be delivered faster than expected, you can always ask your team to adjust accordingly. Had you been outsourcing, you would not have had the option of bringing the deadline forward. Lastly, since the company’s team members are taking on the project, there is more integration with internal processes since everybody is aware of the working of the company.
Cons of Staff Augmentation
When you opt for staff augmentation, that means you are relying on the company’s resources to fulfill a task. This might increase the workload of the management, which, in turn, can take focus away from the core needs of the business. This happens when you pull your IT team away from a major project to work on another one. Moreover, the training cost tends to increase because you have to ensure the staff you hire is up to date with how things work at your company and that they have the required skills to take up this project.
To Sum Up
IT outsourcing vs staff augmentation are good choices when you have a project due. However, what will lead you to the right decision is thinking about the structure of your company and what will serve your needs the best. If maintaining control is a priority, you would be better off with staff augmentation. IT outsourcing would be a better fit if you want to reduce managerial workload. Just weigh the goals of your company and decide accordingly.