The dedicated team and staff augmentation models are some of the most popular outsourcing methods out there. And the reasons for which companies have turned to these models so often are directly linked to the advantages that they entail. Can’t decide between hiring a dedicated team or resorting to staff augmentation? This is understandable, as both business models bring something to the table. However, making a clear distinction between the two can be a good starting point, so let’s begin by briefly defining each model.
A dedicated team is built by the outsourcing services provider, it focuses solely on the project it has been assigned with, and it usually takes up complex, long-term projects. Staff augmentation, or otherwise known as team extension, on the other hand, is typically used to fill skill gaps, and it consists of hiring one or several team members that will work on specific projects.
Benefits of dedicated teams
The dedicated teams model is known for its flexibility and scalability; depending on project needs, new team members can be added or removed in order to meet deadlines or changing requirements.
This type of outsourcing brings more control as well. The dedicated team is under the hiring company’s constant supervision, with which it also communicates directly and frequently, ensuring the project’s constant and steadily progress.
Another great advantage that the dedicated teams model offers is related to the skilled developers that it blesses the contracting business with. The latter gains access to this wide talent pool, that otherwise would have been hard and expensive to reach.
Lastly, but certainly not the least important benefit in our book, is cost efficiency. Besides avoiding recruitment costs, the hiring company will pay considerably less than it would have if it were hiring locally, and the pricing system’s transparency is another added bonus.
Benefits of staff augmentation
Just the same as the dedicated teams model, staff augmentation gives the contracting company the possibility to scale the team extension, according to the project’s needs. Moreover, it can support businesses in achieving urgent objectives, and can speed up and optimize development life cycle.
Staff augmentation also helps hiring companies find their missing puzzle pieces, by providing the right man for the job. The outsourcing services vendor carefully selects skilled and experienced professionals, who will perfectly match the contracting party’s demands.
Cons of the dedicated teams model
Managing a dedicated team requires quite a bit of resources; staying in such close contact with your remote team is clearly beneficial, but only if you are willing to spend the necessary time and resources.
Another disadvantage of the dedicated team model is the uncertainty of its final cost. Staffing changes along the way can seriously affect your budget and there is no way you can predict at what extent.
Cons of staff augmentation
Staff augmentation is usually used for short periods, meaning that your temporary hired professionals will not have the necessary time to acquire a deep understanding of your business’ goals and perspectives. Therefore, staff augmentation may not be the best decision for a more complex project which requires more than a well-developed technical skill.
This type of outsourcing can also be costly, if used incorrectly; for a long-term project, you might end up paying more than if you would have actually permanently hired the extra needed help.
The skill sets that the hiring business acquires through staff augmentation is limited; therefore, if multiple areas need a boost, staff augmentation is not the answer to your problems.
The dedicated team model offers many benefits, from scalability and flexibility to cost efficiency, its perks guarantee its place among the most popular outsourcing models. At a quick glance, one might say that, compared to staff augmentation, the dedicated team model has the upper hand. But the reality is that there is no winning recipe that applies to all companies; each executive must identify their business’ needs and act accordingly.
Backed by 350+ IT consultants, over 250 delivered Agile projects, and over 15 years of creating successful project teams for customers in various industries, TechTalent is the go-to company when deciding to resort to staff augmentation.