Different Types of Outsourcing that you need to know

There are two main types of outsourcing to scale or enhance development teams when utilizing outsourcing services to do so. The most popular options are staff augmentation & managed teams. Both options serve a specific purpose and require a consultation at times in order to select the correct service option.

Which type of outsourcing is the best for your organization?

Staff Augmentation

It’s a service that utilizes outside personnel on a temporary or permanent basis to increase the capacity of your team, complementing the skills and knowledge of it. It reduces time spent on recruitment, eliminates infrastructure investment, and at the same time allows you to maintain control over your existing staff. Staff augmentation is one of the most agile models that outsourcing offers because of its ability to insert resources quickly and within a specific budget. This service is compatible for companies looking to scale their dev team quickly and affordably.

Managed teams

It’s a model with an outsourced team of engineers, developers, designers, and other necessary disciplines that are grouped together to execute an idea, project, or achieve a specific goal. The benefit of this strategy is that companies save time and effort related to hiring, administrative issues, and taxes. This model allows a team of professional engineers to completely dedicate their efforts to projects that are needed to fulfill your development roadmap. The managed team requires minimal maintenance once onboarding is correctly executed and the team is familiarized with objectives. This type of outsourcing service is great for organizations that require a complete team to steer a particular project and/or observe long-term financial benefits related to payroll.

To Conclude:

Both types of outsourcing are secure models that ensure scaling is efficient and affordable. Each has their own benefits for situational needs in your development team. They share common benefits to companies such as cost efficiency, expediting hiring process, expertise insertion, and proper scaling. It is always important to first seek consultation when deciding if a managed team or staff augmentation is necessary. A consultation will allow experts to provide recommendations based on past experiences and success cases.

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