To survive, companies look forward to achieving product-market fit quickly. As businesses search for technology solutions catering to their company size, their specific needs – the software solutions industry offers different services to choose from, privileging various aspects. IT Outsourcing and IT staff augmentation are viable and valuable options for managers in charge of projects undergoing phases of development;
Businesses consider – (1) the team-size, (2) the budget, (3) the project duration, (4) the level of control they require over the team, (5) the technologies and (6) the overall complexity of the project while making business decisions. Way back in earlier decades, talent shortage was an issue. The development lifecycles were not as complex. We have myriad basic programming methodologies/SDLC models that befit the requirements of the project teams and overall business. Example: Waterfall, Agile, Spiral, V-shaped, iterative etc.
Other Types of Development Models Based on SDLC
- Digital Outsourcing Model
- Time and material model
- Team-based outsourcing pricing models
Staff Augmentation vs. Managed Services (Outsourcing)
We’ve curbed the scope of this article to discussing staff augmentation vs. managed services (outsourcing):
What is staff augmentation? The staff augmentation model requires hours of work as service commitment. The provider in managed services model (outsourcing) delivers an “outcome” at a predefined price. The staff augmentation model takes in the “input” forming of an extension to their existing team.
With staff augmentation, an organization purchases engineering resources and simultaneously maintains direct control over the in-house team. With managed services (outsourcing), an organization has to pay for a prearranged outcome and share their fears about development with direct control over certain aspects of business operations.
Therefore, to select amongst these two models: an organization should determine their strengths, weaknesses, opportunities and threats. Additionally, they should be aware of what they have, want, lack? Are you looking for a short-term or a long-term collaboration?
IT outsourcing model suits well to more demanding projects that do not require coding. The software outsourcing company provides many services to manage the entire project. Such a solution requires less engagement from the client-side but extensive research followed by testing.
Types of Contract in Project Management
What is the basis of implementing a specific software development model? (Discuss with us for details.)
- Fixed Price Contracts – Firm Fixed Price (FFP), Fixed Price Incentive Fee (FPIF), Fixed Price with Economic Price Adjustments (FPEPA),
- Cost reimbursable contracts – Cost Plus Fixed Fee (CPFF), Cost Plus Incentive Fee (CPIF), Cost Plus Award Fee (CPAF)
- Time & Material Contracts (T&M)
How should we find a staff augmentation company?
Some basic steps to find the right augmentation partner:
- Check what you’re lacking
- Check with your intentions in the short and long term
- Research the market
- Check the development team – skills, location, demographics
- Analyze the testimonials, client and stakeholder’s references
- Ascertain their portfolio, their social media accounts, their company blog
- Hold a call, price negotiation, discuss contract details
- If all these go well, sign the contract.
What does staff augmentation brings to the table?
Extending your in-house staff brings in workforce transparency, control over project development, project visibility, quality resources and skillsets and the subject experts. It does not require any setup or maintenance costs. There are no hidden costs like hardware, equipment, office rentals etc. And if a team is competent, they will bring value to your project.
Conclusive: Why choose Konstant to augment your team?
We prefer staff augmentation when we look towards saving on IT outsourcing cost as we launch any new project and need extra staff, when the project requires specialized knowledge, and when a project needs scaling. It is a cost-effective and flexible way to deliver solutions. Augmenting saves time, is flexible, is easy, lowers operational costs, and closes the skill gap. Get a free quote!