Tuesday, January 9, 2024

Staff Augmentation vs Project Based Consulting

 


Since the advent of intense globalization, outsourcing offshore or nearshore talent has

become a feasible solution for businesses. From assisting in streamlining their

operational workflow to gaining a competitive advantage, the business strategy is

emerging as a discrete service for worldwide businesses. 


The combined impact of team augmentation on saving costs, such as training costs

compensation costs, operational costs, marketing and advertising costs, and overhead

costs further reduce the project and resource budget for a business.  


However, businesses often lack expert guidance on what outsourcing model to opt for

and when. In this article, we will discuss the two most popular IT staff augmentation

services and models commonly preferred by global businesses contemporarily— staff

augmentation and project-based consulting. 

What Is the Difference Between Project and Staff Augmentation?

Albeit, both are models of outsourcing talent outside the in-house team, several nuances

differ them discretely. Additionally, factors like the organization's size, core competencies,

project timeline, infrastructure costs, long-term strategic goals, data security, legal

frameworks, Service Level Agreements (SLAs), international expansion, and scalability

collectively impact the requirements to selectively choose the right outsourcing model. 


In case, you want to know what differentiates these models, this insightful article will help

businesses evaluate on essential differences, terms, and benefits of the two most commonly

interchanged terms, staff augmentation, and project-based outsourcing. 


Here we go!

What Is Staff Augmentation?

Staff augmentation is a business strategy that helps businesses gain specialized expertise

from different geographical locations. The process simplifies talent acquisition by

introducing third vendor expertise. Third-side vendors, in this case, staff augmentation

companies with qualified and expert software developers lend outsourcing services to global

companies easing the hiring process. 


Staff augmentation services for IT projects bring two benefits. First, global enterprises do not

have any long-term commitments. Secondly, the short-term skill enhancement is rapidly met. 


Now, what is an example of staff augmentation? 


A classic example of resource staff augmentation is outsourcing software development

services. Businesses with no or insufficient in-house software engineers may prefer

nearshore, offshore, or onshore outsourcing services to fill technical gaps and gain access

to the emerging digital realm. 


Also, staff augmentation can opt for non-urgent business priorities. For example, simple

software IT and support, a non-core software need must be addressed to ensure and maintain

maximum downtime. But it is not urgent. Thus, a company can seek staff augmentation

services to build a robust and consistent presence amongst users. 

What Is Project-Based Consulting?

Project-based consulting, conversely, is comparatively expensive and includes more long-

term project based commitments. Where staff augmentation ensures short-term development

and IT needs, project consulting helps businesses tap into highly specialized experts who have

defined skill sets to complete projects with desired outcomes within timelines.


Additionally, with project-based consulting, minimal or less training is required.

Technology staff augmentation on a project basis can be high on expertise in operating the

latest tech stack and surfacing technologies for instance artificial intelligence and edge

computing.


That’s why large-scale enterprises employ project-based expertise to gain strategic guidance

in a field where companies have minimal knowledge. For instance, blockchain is an

emerging field that allows companies to secure their transactions and transform their

network into a decentralized ecosystem. Hundreds of companies are still losing lucrative

opportunities to create a robust and secure framework for their business because they lack

industry compliance and inadequate resource allocation for the blockchain. 


After frisking quickly on the benefits of both styles of outsourcing, here’s the time to

understand their benefits one-on-one. Also, let’s understand what are the terms that

require a specific solution. 


When to Employ Software Staff Augmentation?

Let’s find out what are situations where staff augmentation is usually preferred.

Specialized Skills

Whenever a business needs specialized skills, not necessarily on the latest tech trend. For

instance, a software engineer with JavaScript proficiency.

Temporary Workload

When workload is high and effective resources are not available. For instance, during the

recent COVID-19 pandemic, health insurance industries were severely flocked with hundreds

of registrations and applications. 

Seasonal Hike

When businesses have seasonal demands going on and market needs rise. For instance, due to a rising trend for online businesses, software, and application

development, companies need a high number of developers. 

Interim Management Needs

Due to internal turbulence like insufficient coordination or the lack of management

executives, a company may need to hire an expert to manage and coordinate. 

Flexibility

To adjust the workforce’s size and effectively allocate resources. 

Cost Management

When businesses wish to hire but want to save on operational and overhead costs.


When to Employ Project-Based Consulting?

Here are some exemplary benefits of project-based consulting. 

Compliance and Regulatory Challenges 

When businesses might not want to take risks due to a lack of industrial compliance and

standards. 

Digital Transformative Initiatives

When transformative technology, such as AI, ML, and IoT is highly needed by a business,

the situation straightforwardly demands project-based experts.

Specialized Expertise

When businesses want to mitigate risks while making significant business decisions. 

Time-bound Projects

Time-bound projects need high precision and skilled accuracy to finish them on due

timelines. 

Strategic Planning and Advises

When highly qualified vision and guidance are needed, project-based consulting is the

way-to-go option for businesses. 


When to Prefer Which Model?

Staff Augmentation

Project-Based Consulting

Requirement of Specialized Skills

Highly Specialized Skills

Temporary Workload

Duration-bound Projects 

Flexibility and Scalability

Turn-around Projects

Cost Management

Cost-intensive but Specific Services

Interim Needs

Market Research and Analysis

Skill Diversity

Transformative Projects


Conclusion

In the fast-growing world equipped with the latest technologies, businesses have no option

but to outsource software services to immediately tap into the diverse talent pool. In

summary, the final goal of outsourcing is to provide immediate talent and skills to

accomplish the project, be it temporary staff augmentation or project-based outsourcing.

However, understanding the minuscule differences is imperative to determine which model

will be effective for a specific business case. 



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