outsourcing in companies

Staff augmentation vs outsourcing in companies

What’s the difference between these?

To evaluate the differences between these services, first, it’s important to know the meaning of staff augmentation and outsourcing, the benefits, and the types for each.

Staff Augmentation

Staff augmentation is a strategy that is used to increase the staff of the business and reach specific goals.

To implement this strategy, it is essential to know all the capabilities of your team, and identify those things that are necessary to continue with the development of the project that you want to start.

Staff Augmentation benefits:

  • Easier project management. With this model you can have a specialized team for each of the many projects, which will make the projects more agile and easy to administrate.
  • Quality assurance. Your team could develop software for your company, but it is indispensable that an independent professional check the build process, be part of the team, or examine the final product to make sure that the software works properly.
  • Reduce costs. You don’t have to hire staff or a team on a full time basis. You can do so for a defined time frame, while reducing the spend on the training and recruitment.
  • Easier recruitment. You can save money in this process and also time, since the company that offers this service takes care of the recruitment of the personnel with the specific talent that you need.  


Staff Augmentation Types:

  • Basic staffing: You require some new people to do basic activities that are important, but they do not need to have special abilities. 
  • Ability based staffing: The supplier company offers you a professional team that can achieve those specific activities that your project requires.
  • Expert based staffing: The service that you hire requires very specific talent and abilities, with greater experience in the field to help complete your project. 

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Outsourcing in companies is a process where the company moves the resources and responsibilities to other companies through a contract, and the activities are developed under the name of the hiring company.  

This service is used to acquire a new team and reduce the workload of the company, thereby improving the productivity of the local teams.

Benefits of Outsourcing:

  • To improve the quality, you hire personnel that have all the experience and knowledge that you need to do those specific tasks.
  • The company will have better focus. The work can go to the other company, so the local teams dedicate their time and talent on other priority projects inside the company.
  • Faster processes. With more hands working for your company, the productivity will increase, with more projects completed on time.
  • Instant access to new technology and knowledge. The only thing that your company has to do is find the correct outsourcing company that suits your needs and take advantage of their knowledge. 

Outsourcing types:

  • Tactical outsourcing: The company needs to externalize non-priority tasks. This service is used to reduce costs. 
  • Strategic outsourcing: The hiring company finds a stable service to create a strategic alliance. This service is used to improve the quality of service or increase the capability of the company.  
  • Co-sourcing: Both companies share the responsibilities, and sometimes the risks, of the provision of service.
  • In-house: The outsourcing service has staff working onsite at the company’s premises.
  • Offshoring: This service is used generally for the manufacturing of low-cost products, or when the service is sent to a foreign company where the costs are cheaper than the services offered in the company’s country.
  • Off-site: The service is carried out at the company that offers the staffing solutions. 

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How to choose which service your company needs?

You need Staffing Solutions if:

  • You are already developing a project, and you discover that your IT development team does not have a specific skill that is key to continuing the project or ensuring the quality of the project.
  • Your company does not have an engineering, development, or IT team, and you require it for your project, but you do not want to hire a team permanently.
  • The project that your company is developing takes a lot of personnel or time, and you want to have more flexible capacity.

 With a Staff Augmentation model, you have more control of your projects, and you can manage the work of the professionals that you hire.

You need Outsourcing for IT if you: 

  • If your company does not have an area or work team dedicated to software development.
  • If your company already has a development team, but it does not have a specific skill that is necessary for the correct development of the project.
  • If the value or the costs of the development of the project is an important factor and the team at your company cannot guarantee it.

With outsourcing in software development, you can designate the management of the team to the company that you hire.

For flexible staff augmentation on Salesforce Cloud projects, SQDM stands ready to support your project requirements.

Contact us to learn more about our various skill sets and rates.




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