What is a problem to solve and need to meet?
While choosing between staff augmentation and software outsourcing, you need to consider what your real need is. For instance, if you are looking for an end-to-end, tailor-made solution that can be developed and deployed alongside your core business, you should consider software outsourcing. While this doesn’t give you full control over resources, it does allow you to devote more energy to the core of your business.
On the other hand, if your need is only to supplement the competencies you already have within the company, a staff augmentation model may be a better idea. In such cooperation, a separate team is not created as an independent entity, but external specialists join the team (e.g. Java Developers). And you, as the manager or owner, remain the person who manages the work and remains responsible for the end results.
Software outsourcing provides solution to business issue by creating an end tech. Staff augmentation mainly solves the problem of team scalability with flexibility in mind.
How much responsibility to maintain?
Speaking of which, there are many differences between the two models when it comes to the issue of responsibility. With software outsourcing, the vendor is fully responsible for assembling a skilled team and the right tools, and for developing the product from the ground up to final delivery – and is held accountable for that work. You, on the other hand, provide definitions, guidelines and a vision of the final result. This division of responsibilities, of course, also means less risk for your company.
In contrast, in the staff augmentation model, you remain fully responsible for the process and its outcome. Developing the idea, managing the team, implementing and executing the project are on you. On the one hand, this can be risky. On the other hand, it means more control over all the elements. Not only can you shape policy and process, but you can also choose the right people for the project and react quickly when something doesn’t go your way.
In software outsourcing, you avoid risk and additional responsibilities for the price of the control. In staff augmentation, you maintain control and flexibility, but you also have to watch over the entire process.
Flexibility issue
Admittedly, both models are inherently more flexible than team hiring, but they are not equal in this regard. Staff augmentation allows a very high degree of flexibility both in the layer of shaping the relations, the scope of cooperation and decision making. By contrast, software outsourcing allows you to flexibly adapt the solution to the needs of the business, but after the start of the cooperation you can only move within a strictly defined framework.
You must keep this in mind when choosing a solution for your business.
Communication
Another differentiating factor is the method of communication. When external specialists power your team, you can communicate with them on a daily basis as with any other employee. The transfer of information is fast and there are no intermediaries.
With software outsourcing the matter is not so easy. Communication with the supplier is rather cyclical and has a strictly defined framework. You usually discuss the implementation of provisions or necessary changes. You also do not have direct contact with developers here. The supplier is responsible for that.