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IT Staff Augmentation vs
Offshore Development:
The Better Model?
An emerging trend in today's business world is the
concept of globally distributed teams.
While this practice isn’t necessarily new or modern, it has
become increasingly popular in the wake of the
coronavirus pandemic.
The acceptance of remote teams has manifested itself in
the form of many working models: including outsourcing,
staff augmentation, and offshoring.
In this piece, we compare two popular models that have
gained momentum in the software industry — IT staff
augmentation and offshore development.
Introduction
IT staff augmentation a flexible
outsourcing strategy
Staff augmentation is a model where businesses evaluate
their existing staff and determine the additional skills
required to bring a specific project to fruition.
They can then hire external employees with specialised
skills to temporarily augment the existing capacity of
their organisation.
And given the acute shortage of tech talent globally, this
solution allows businesses to hire the engineers they need
to keep their business afloat.
1. To increase capacity to meet a
sudden demand
2. To access skills for one-off
projects
3. To access skills for one-off
projects
When to use IT staff
augmentation?
Businesses can hire employees on a
flexible, contract basis and pay
them only for the work they do
Cost-effective
With no investment in
infrastructure or training, IT staff
augmentation is a cost-effective
model to access on-demand,
specialised skills.
The pros of IT staff augmentation
Flexibility: An opportunity to focus on
the core business:
Because businesses collaborate with
an external vendor, they don’t have
to worry about organisational and
administrative responsibilities.
Because it is billed on a
time-and-materials pricing model,
you may be charged for services you
haven’t used.
Inconsistent quality:
Potentially high turnover because
of employees who often work on a
short-term contract or freelance
basis.
The cons of IT staff augmentation
Hidden costs: Not sustainable over the
long term:
The staff you hire may need to take
on other projects or leave the
vendor company mid-project.
With fierce competition and a serious shortage of
engineers, finding elite in-house IT talent can be
challenging.
Offshore software development is the solution to this
dilemma.
Offshore software development —
a dedicated team
By going offshore, you no longer
have to engage with external
vendors to fulfill internal capacity.
extension of your local team.
Talent pool
Instead, you can leverage the large
talent pools in growing tech hubs
like India and build a dedicated team
of skilled developers abroad.
The pros of offshore development
Independence Dedicated workforce
The team is yours in every sense —
they’re full-time, permanent
employees that are a value-adding
extension of your local team.
Both IT staff augmentation and offshore development have their own set of
benefits and drawbacks.
For short-term projects that don’t last for more than a couple of months,
staff augmentation is usually the strongest option.
However, if you’re a company looking to enhance your operations by
building a team hand-picked from a deep pool of talent — while still retaining
complete control of the process, then offshore development is the way to
go.
IT Staff Augmentation vs. Offshore
Development: a conclusion
Thank you
thescalers.com

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IT Staff Augmentation vs Offshore Development

  • 1. IT Staff Augmentation vs Offshore Development: The Better Model?
  • 2. An emerging trend in today's business world is the concept of globally distributed teams. While this practice isn’t necessarily new or modern, it has become increasingly popular in the wake of the coronavirus pandemic. The acceptance of remote teams has manifested itself in the form of many working models: including outsourcing, staff augmentation, and offshoring. In this piece, we compare two popular models that have gained momentum in the software industry — IT staff augmentation and offshore development. Introduction
  • 3. IT staff augmentation a flexible outsourcing strategy Staff augmentation is a model where businesses evaluate their existing staff and determine the additional skills required to bring a specific project to fruition. They can then hire external employees with specialised skills to temporarily augment the existing capacity of their organisation. And given the acute shortage of tech talent globally, this solution allows businesses to hire the engineers they need to keep their business afloat.
  • 4. 1. To increase capacity to meet a sudden demand 2. To access skills for one-off projects 3. To access skills for one-off projects When to use IT staff augmentation?
  • 5. Businesses can hire employees on a flexible, contract basis and pay them only for the work they do Cost-effective With no investment in infrastructure or training, IT staff augmentation is a cost-effective model to access on-demand, specialised skills. The pros of IT staff augmentation Flexibility: An opportunity to focus on the core business: Because businesses collaborate with an external vendor, they don’t have to worry about organisational and administrative responsibilities.
  • 6. Because it is billed on a time-and-materials pricing model, you may be charged for services you haven’t used. Inconsistent quality: Potentially high turnover because of employees who often work on a short-term contract or freelance basis. The cons of IT staff augmentation Hidden costs: Not sustainable over the long term: The staff you hire may need to take on other projects or leave the vendor company mid-project.
  • 7. With fierce competition and a serious shortage of engineers, finding elite in-house IT talent can be challenging. Offshore software development is the solution to this dilemma. Offshore software development — a dedicated team
  • 8. By going offshore, you no longer have to engage with external vendors to fulfill internal capacity. extension of your local team. Talent pool Instead, you can leverage the large talent pools in growing tech hubs like India and build a dedicated team of skilled developers abroad. The pros of offshore development Independence Dedicated workforce The team is yours in every sense — they’re full-time, permanent employees that are a value-adding extension of your local team.
  • 9. Both IT staff augmentation and offshore development have their own set of benefits and drawbacks. For short-term projects that don’t last for more than a couple of months, staff augmentation is usually the strongest option. However, if you’re a company looking to enhance your operations by building a team hand-picked from a deep pool of talent — while still retaining complete control of the process, then offshore development is the way to go. IT Staff Augmentation vs. Offshore Development: a conclusion