In today’s digital workspace, organizations across the globe take various outsourcing engagement models like Staff Augmentation, project outsourcing, and managed services to bring outside talents and enhance productivity. These models help them to cut personnel costs, accelerate project timelines, etc. Organizations can access a huge talent pool of skilled resources on-demand. 

In this article, CloudVandana will discuss the essential distinctions between these models. 

Staff Augmentation

Staff Augmentation is the practice of in-house team expansion to help organizations hire specialists for projects for a faster deployment process. Organizations generally make a contract with a Staff Augmentation firm like CloudVandana and leave the whole responsibilities of hiring, onboarding, and training to them. It helps them to get hand-picked developers quickly and cost-effectively. So it saves time and money. 

Staff Augmentation enhances the project’s capabilities by adding staff to the existing team who work as extended team members for better success.  

Benefits of Staff Augmentation

1. Staff Augmentation offers flexibility to scale up or down the team. The process eliminates the hassle of recruiting, hiring, and dealing with expenses associated with full-time employees. The existing full-time staff does not need to worry about job security as these newest team members only work on the project on a short-term basis. 

2. The model helps the organization easily integrate external engineers into an internal team. Virtual meetings and seminars can easily overcome cultural and time zone differences. 

3. Staff Augmentation model can easily bridge the in-house skill gap with outside talent. The model can also save money by reducing general overhead costs and the associated expenses with hiring and training. 

Project Outsourcing

Project Outsourcing is different from Staff Augmentation in various ways. One of the key differences is that, with Staff Augmentation, organizations generally hire IT resources to maintain direct control over the team. But with outsourcing, organizations pay for a specific outcome sharing the burden of risk with the outsourcing vendor and giving up direct control over certain aspects of business operations. 

An IT outsourcing agent can recruit, train, and manage a team of skilled professionals to handle various development tasks. Project outsourcing is also a remarkable option for filling internal skills gaps, finding outside expertise, or saving costs by offloading less critical business operations to the outside vendor. 

Benefits Of Project Outsourcing

  1. Cost saving is one of the most important benefits of project outsourcing. As per a survey report, most American companies selected the project outsourcing model due to its cost-effectiveness. After signing the contract, the responsibilities of setting up, training, and managing the remote team falls to the vendor. A reputed vendor can guarantee the quality of the final product. 
  2. Gaining access to skilled, trained, and experienced resources on-demand. Organizations select the best team based on their size and requirements. As the process is very fast, organizations do not face any gaps in the workflow. 
  3. The project outsourcing model can free up the time of in-house employees by assigning various development tasks to the outsourcing teams. So, managers gain more flexibility in utilizing their onsite resources, which are available to be redeployed to work on mission-critical projects. 

Managed Services

Managed service is another outsourcing model. Managed services share some things in common with project outsourcing, which can cause some confusion. As experts do not agree on an exact definition of the term, managed service providers offer remote IT solutions continuously. The model generally engages on a project-by-project basis. 

Organizations can contact a managed service provider to support the company’s day-to-day operational needs, including software updates, repairs, or managing the platform-as-a-service or software-as-a-service that keeps your offices running efficiently. 

This model can potentially give employees more time to focus on the most pressing mission-critical tasks rather than wasting their valuable time on internal IT services. 

Are you looking for the best model that will enhance your business? Please schedule a call with the reputed Staff Augmentation partner CloudVandana and get the best solution from our experts to stay one step ahead of your competitors. 

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