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Staff Augmentation vs. Outsourcing vs. Hybrid approach

The choice, as always, depends on your needs.

Nacho De Marco

By Nacho De Marco

CEO/founder Nacho De Marco established BairesDev in 2009. He is General Partner at BDev Ventures and the author of "IT Outsourcing to Latin America."

10 min read

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In the process of development, dedicated IT teams go beyond the act of simply meeting a deadline. IT teams are now exceeding expectations as they meet project goals with precision and laser focus. To meet client deadlines, staff augmentation, outsourcing, and a hybrid approach remain the primary development work models that support staff and meet specific company needs.

Let’s compare the advantages of each model as you consider the most beneficial approach for your employees and project developments.


Staff augmentation is cost-effective and flexible

For a project to be successfully completed, management often assesses the skills that are available in-house and additional skill sets that will be needed. Staff augmentation is a common solution because it is both efficient and inexpensive.

Furthermore, staff augmentation allows a company to add a temporary employee through a separate business to provide the needed assistance. If your IT department is lacking a specific set of skills, augmenting your staff by temporarily adding a specialist to the team will add more power to your IT project. As you reach different stages of the project, you can add or remove new staff members based on how the project is progressing.

Taking on full-time employees is costly, and comes with additional legal issues that may not serve the best interest of the employer. Staff augmentation is often appreciated by full-time employees because it helps everyone to reach the final deadlines quickly and with fewer errors. Executives want to use time and monetary resources wisely while enhancing productivity. Placing one new person on an IT team that is already structured and knowledgeable makes learning new procedures an individual responsibility instead of training an entire team, which could easily disrupt a proper workflow.


Outsourcing keeps separate teams managed and focused on a common goal

Globally, 288 billion dollars has been spent on outsourcing in the IT industry. Why? Because IT workers and management want to focus on what they do best. By outsourcing, the responsibilities of the new staff are held by the provider of the outsourced employees. The outsourcer takes on the tasks of training, maintaining contracts between employees, and producing results.

Still, the company that hires the outsourcer is allowed to have a say in the size of the team and the demands that must be met. As the needs of the project change, so can the staff upon the request of IT management. While you do have a say, you want to make sure that your outsourcer is reliable, with a proven track record of building responsible and productive teams.

Here’s a tip: Remember to be considerate of your internal employees as they work with outsourced staff. This transition may leave some workers concerned about their job safety and working status.


A hybrid approach combines the benefits of staff augmentation and outsourcing

In the world of technology, change is inevitable – and it happens fast. During the phases of software development, companies often benefit from diverse approaches to remedy internal issues.

As a project moves toward the finish line, there may be stages where staff augmentation is needed to bring in someone with specific knowledge for help. In another IT development phase, it may be best to have an outsourced team working on a project separately. This aids the internal company departments and keeps both teams from losing focus.

The best way to determine if you should use a hybrid approach, staff augmentation, or outsourcing is by looking at the bigger picture.

  • What are the goals and deadlines of your project?
  • In what areas can your team be strengthened?
  • How can your staff and outsourced workers be accommodated to create collaboration instead of competition?

Asking yourself these questions is the best way to come to the right decision while working as part of IT management.

Nacho De Marco

By Nacho De Marco

Nacho De Marco is the founder and CEO of BairesDev and General Partner at BDev Ventures. Beginning with bootstrapped investments, he led the company to become the largest and fastest-growing software corporation in the world. He is also the author of "IT Outsourcing to Latin America."

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