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Technological Innovations progressively propels the operational productivity and cost reduction, which directs towards the increasing IT Projects. With the frequent shifts in the organization’s IT needs, to enhance the capability of the in-house team might come out as daunting and expensive.
Moreover, slipping behind the groundbreaking IT trends tend to escalate to catastrophe. Furthermore, even the businesses that are content can easily count on obsolete legacy infrastructures but in case of decline, it might also disrupt. Whenever businesses seek additional assistance to carry out their IT projects, they typically go for two approaches: Staff Augmentation and Project Outsourcing.
Let’s compare both to see which one can come in handy when and how.
IT STAFF AUGMENTATION
The growth in IT staff augmentation enables a business to boost its workforce in line with the necessary expertise required to sustain its initiatives. The staff augmentation business employs resources. Companies can dynamically adjust and reduce their demand without paying the additional full-time workers expenses and liabilities.
Pros
Staff Regulation
Staff augmentation comes out to be ideal in need to closely manage resources, staff augmentation is ideal.
Affiliation with Existing Processes
For firms, affiliating existing business operations with the staff augmentation resources is much more effective than aligning those with the external project staff. Therefore, it is much easier for an individual to adjust to the business operations rather than the alignment of two separate businesses.
Utilization of Existing Resources
A business can easily benefit by utilizing both existing and external resources to achieve desired results after their IT projects completion.
Professional Proficiency
Staff augmentation can aptly fill gaps in case your in-house project staff lacks any required professional proficiencies.
Eliminate Skill Development Costs
Instead of investing money for the skill development training of the in-house staff, it is best to go for staff augmentation.
Lifting The Weight Off
Staff Augmentation would not just help lift the weight off the businesses but also enable them to see a massive reduction in costs and liabilities.
Reach Project Deadlines
Staff augmentation comes in quite handy and is preferably one of the best options to utilize when an ongoing project requires more resources for the completion to be done before the deadline.
Effortless Adaption
As the businesses are already comfortable with the idea of recruiting staff, therefore, won’t be much of a trouble adapting to the idea of staff augmentation. It is far more effortless to adapt rather than a project outsourcing model.
Cons
Comprehensive Training
Despite cost savings through staff augmentation, a comprehensive training might still be involved to have resources accelerate the business operations.
Dependance on internal processes
Businesses having operational flaws are somehow affected negatively and are unable to utilize the perks of best practices by implementing staff augmentation.
Lack of Cost Savings
In case an organization requires more capital, the cost structure doesn’t drastically boost since capital is incorporated gradually and prices are primarily determined as per the service.
Resource Focused
Staff augmentation goal is to inevitably produce outcomes. The firm remains liable for outcomes, project tasks, and deadlines by utilizing staff augmentation to further assist in producing such results. Even though businesses acquire resources, premium quality yet still no outcomes.
IT PROJECT OUTSOURCING
The outsourcing of IT projects facilitates businesses to undertake entire projects leveraging other businesses’ capital. The project outsourcing strategy enables businesses to leverage external experience, cost control, and risk reduction throughout to direct their existing capital on their core operations.
Pros
Mitigation of Training Expenses
As training and skill development is outsourcing providers’ responsibility after the project is outsourced, it helps in mitigating training expenses involved.
Best Applications
By hiring an outsourcer acquiring expertise to implement the best applications to enhance business operations, businesses can very well be benefited from it. Outsourcers help lift the weight off you by sharing the responsibility of adapting, management, and enhancements in applying the best suitable applications.
Result-Oriented
The outsource providers are responsible for delivering results and share the risks and benefits involved along the project outsourced.
Focus on Core Operations
Businesses are basically focused upon results and core operations as the responsibility to deliver results lies with the outsource providers.
Overpower A Lack of Existing Capabilities
It is more cost-effective for businesses to outsource their business operations that tend to lack existing capabilities or skills to achieve their desired outcomes.
Varying Costs
Operating Leverage is enhanced by the variations in cost as per the current level of the project undertaken.
Cons
Lack of Regulation
Regulation of top-level business operations to the lower level individual operations, dwells entirely with the outsourcer.
Finding a quality outsourcer
It might be troublesome to settle for one from a bulk of potential outsourcing firms, whilst seeking for the one acquiring competency and skills beyond your reach in order to achieve the set goals.
Smaller projects
In the project outsourcing model, smaller projects may be less costly as compared to the staff augmentation model. Some outsourcers may be unwilling to undertake small projects and may also demand more.
Affiliation with Existing Operations
Under a project outsourcing model, affiliation with diverse and complex existing operations might come out as more challenging, thus increasing competition for business affiliations.
CONCLUSION
Most businesses fail to find a suitable approach. Whilst most are better encountered by staff augmentation, others find IT project outsourcing more beneficial. A nuanced verdict could be to select the best suitable model.
Where most companies feel content with this verdict, some prefer it handy to seek assistance from an IT consulting company. It is best to consider a company you can count on to interpret your business and generate the outcomes you expect.
