IT staff augmentation Vs. Outsourcing: Which model suits your business growth?

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As per the report, the IT staff augmentation and outsourcing services have grown immensely since the post-pandemic. IT staff augmentation services have seen a growth of 3.53% CAGR, and worldwide spending on IT augmentation is $81.87 billion. On the other hand, according to Statista, the Outsourcing market will reach $425.19 billion by 2026.

After knowing these stats, we can say the IT world is in a new dimension and is at its peak. After the pandemic, most businesses want to register an online presence to compete in this competitive online market. However, the biggest problem is hiring IT talent; most businesses need more when finding and hiring the required talent.

In this blog, we’ll discuss two of these IT staff hiring models, know which one will be best for you, and how to hire a strategic partner for your business growth.

What is IT Staff Augmentation?

IT staff augmentation is considered one of the most effective in both sense pocket and talent ways to hire new talent to fulfil your project requirements. In layman’s terms, an IT staff augmentation service provider will provide top-tier talent according to your needs and goals.

IT staff augmentation service providers follow an agile approach and provide you with the right talent at the right time. For example, suppose you want to develop an app from scratch, your current team is working on another project, or your team lacks a specific skill. In that case, you can contact the IT staff augmentation provider, and they will understand your requirements and provide you with the best talent within no time, saving you a lot of time and, of course, money.

The best thing about the IT staff augmentation is that they keep a wide arena of professionals from different industries, and you can get most of the professionals under the same roof. We’ll discuss its benefits in another section. Now, let’s move towards Outsourcing.

What is Outsourcing ?

Outsourcing was first introduced in 1989, and now it is one of IT companies’ most popular business strategies. In Outsourcing, a company hires another company to do their project. Don’t get confused; we outsource work in IT staff augmentation and Outsourcing, but there are many differences between them.

In IT staff augmentation, we hire the talent which we require. For example, In IT staff augmentation, we can hire a single developer or a complete IT team to work on your project, and they will work side by side with your in-house team and will directly report to you. On the other hand, in Outsourcing, we outsource our work to a different company, and they will work on your project in their particular space and will not be liable to report to you. It’s confusing; don’t worry; we have clarified it in the below section.

IT staff augmentation vs. Outsourcing: Key differences

Well, organizations and businesspersons need clarification about IT staff augmentation and Outsourcing; we’ve created a table of the differences between both so you can have a clear view of both models and decide which approach is best for your business growth. So, let’s clear it

Differentiator	IT staff augmentation	Outsourcing
Ownership	All the ownership rights will remain with your in-house team.	The complete project responsibility will be the outsourced company.
Purpose	To bridge the skills gap and hire the only required talent to work on your project.	Outsource a project or task you can’t do to a third-party specialized party.
Control	The hired talent will work for you on your terms and conditions and directly report to you.	You’ll have no control over the outsourced company as they will work separately with their team.
Scalability	You can easily scale up and down your hired talent per your project needs and goals.	You cannot scale up and scale down the team.
Cost	IT staff augmentation is more cost-effective as you can pick the number of talent to work on your project.	It will fixed and will mentioned in the contract.
Risk	The hired talent will work with your in-house team and use their resources, so there is less risk of data breach and other risks.	The company will work independently, and you might need to share data and technology, so it can be considered a bit risky.

IT Staff augmentation vs. Outsourcing: which approach is best for you?

IT staff augmentation and Outsourcing are both the best, but it depends on your needs which model you should choose. There are several scenarios when Outsourcing can work like a charm for you, and also, there are some needs when the only and best way is to hire an IT staff augmentation company.

Most organizations and start-ups consider hiring IT staff augmentation service providers as it offers several benefits. If you’re a start-up, there are chances that you might be struggling with the funds or struggling to meet seasonal demands. Then, IT staff augmentation is the best option for you as it offers both scalability and cost-effectiveness. Also, with the augmentation of IT staff, you eliminate the hassle of hiring a new candidate immediately.

IT staff augmentation can become the most effective for you, and below are some of its many benefits that will clarify why IT staff augmentation is slowly becoming the first preference for organizations to hire talent and reduce workload.

What are the benefits of hiring Staff augmentation?

Zero Commitment: When you hire new talents from the IT staff augmentation, you don’t make any commitments. The service provider will handle all the legal paperwork, employee benefits, insurance, etc. You will only pay the amount we both agreed on in the contract.
Staff flexibility: When hiring candidates with IT staff augmentation, you can scale up or down your team anytime, per your requirements. Hence, you can employ new candidates if you have seasonal demands and then release them whenever you have fewer projects or work.
Access to top talent: IT staff augmentation service providers onboard candidates worldwide, providing them with the best talent. When you hire candidates with IT staff augmentation, you most likely get to hire the candidates you cannot hire on-site or through a traditional approach.
Transparency: Candidates hired through IT staff augmentation will work side by side with your on-site team and directly report to you. This also enables your on-site team to collaborate with the augmented staff and learn new skills.
No investment in the new talent: The most significant benefit of hiring with IT staff augmentation is that you get ready to work with professionals. Organizations don’t have to invest time and money in the new candidate to get familiar with their technologies and methodologies. Also, the augmented staff will work remotely from their set-up and use their own development and marketing tools, so you’ll save a fortune here.

IT staff augmentation can save you a fortune and get the best candidates who will impact the outcome results. However, before you start looking for an IT staff augmentation service provider, there are a few things which you need to consider to get the desired results.

Things to consider before hiring IT staff augmentation

Evaluate your requirements: Before hiring a candidate, you must know what skills your team lacks and your future requirements. If you are unaware of your requirements, you’ll spend a lot of money and have no results. Always find your pain point and consider every little requirement of your project.
Skill and experience of service provider: When selecting the IT staff augmentation service provider, you must go through their portfolio, like what are their previous projects, do they worked on the same project as you in the past, and how their projects are working. Also, check their reviews on a reliable platform.
Cost and Budget: Before selecting your IT staff augmentation partner, evaluate their cost model and make sure you also have the same or higher budget; otherwise, this can become a hassle in future.
Cultural Fit: Communication and collaboration are vital in the project outcome. Consider the Augment staff provider culture and ensure it aligns with your in-house team, so there will be no hassle in communicating and collaborating with the augmented staff.

Considering these factors while hiring an IT staff augmentation provider will enhance your project outcome and benefit your business. When companies do IT staff augmentation correctly, it results in lower costs, employee loyalty and better results. Ftechiz is one of the most world-renowned names for IT staff augmentation. We’ve been helping start-ups for 6 years and have successfully delivered projects that have set new industry standards and helped companies boost their sales.

How can Ftechiz help in your business growth?

Provides top 1% talent pool: At Ftechiz, we follow an agile and proven process to onboard candidates, which ensures that only the best get hired. We can proudly say that we have the industry’s top 1% talent pool.
Cost-effectiveness: We know that budget plays a crucial role in business prosperity, and this is where most of the lacks. Ftechiz offers several cost-effective hiring models so everyone, including start-ups, can hire the best talent in the industry.
Faster time to market: With our agile and simple hiring approach, we onboard suitable candidates in no time, which ensures continuous productivity and results in faster time to market.
Strategic Partnership: At Ftechiz, client satisfaction is the first priority, and we appreciate every feedback and implement it if it seems right. We don’t just aim to be your IT staff augmentation provider; we strive to become the reason for your client’s success.

Ftechiz professionals will be with you at every step and will empower your business to reach the pinnacle of prosperity. We will provide you with the unwatched skills and flexibility and unlock new avenues for your success and growth.

Conclusion :

Undoubtedly, outsourcing and IT staff augmentation are the future of hiring IT skills and taking down the burden of the work. However, there are several top benefits of IT staff augmentation that every type of business start-up, enterprise, and MNC consider hiring their workforce with the IT staff augmentation. Ftechiz has proven its unmatched skills and is helping tomorrow’s UNICORN with unmatched IT staff. Drop us an email for further enquiry and a free quotation.

We hope this blog has cleared all your doubts regarding outsourcing and IT staff augmentation. Now it is your call whether you want to Outsource your project or hire augmented staff to work alongside your in-house team.

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