Staff Augmentation vs. Outsourcing: Which Is Right for Your Business?

Don't let a managed services provider fool you. Outsourcing and staff augmentation are the future of staffing solutions in the IT industry.

In the IT landscape, selecting the right staffing solution is essential to the success of any business. As technology evolves, companies must stay ahead of the curve to remain competitive, and having access to the right talent is vital to achieving this.

Two of the most popular staff-sourcing strategies are staff augmentation and outsourcing. But, before making a choice between staff augmentation vs. outsourcing, it is essential to understand them to make the best decision for your organization.

What Is the Staff Augmentation Model?

The staff augmentation model allows businesses to obtain the necessary personnel for their software development projects without a long-term commitment. Businesses can hire a staff augmentation company to source and manage the right personnel that fit their requirements.

The advantages of staff augmentation

Increased productivity

Staff augmentation is an investment in qualified and experienced personnel to maximize efficiency and help your business reach its peak success.

Scalability & flexibility

For businesses looking to customize their workforce to suit the demands of their projects, IT staff augmentation allows companies to adjust their staffing levels as their requirements change.

Cost savings

Rather than spending time and resources on recruiting, hiring, and managing a full-time employee, businesses can benefit from staff augmentation – a cost-effective alternative.

Access to specialized skills

Whether to bridge a skills gap or take advantage of specific competencies, staff augmentation services provide a means of sourcing the necessary capabilities.

Potential challenges with staff augmentation

Hidden costs

The risk of unforeseen expenses can be a significant obstacle in project preparation, as overlooking this factor could lead to costly delays.

Be prepared for unexpected expenses and keep a close dialogue with your staff augmentation service provider to guarantee that you and they agree with all pricing arrangements.

Poor quality of work

When the quality of work does not meet the agreed-upon standard, stakeholders may experience feelings of frustration and discontent. This can lead to prolonged timelines and additional costs, leaving all parties unsatisfied.

Thoroughly explore the backgrounds of the staff augmentation companies you are considering to ensure they have the expertise to uphold excellence in the workplace.

Lack of trust

Trust is essential for creating the synergy necessary for teams to flourish. Without it, relationships become strained, and cohesion is difficult to achieve.

Build a solid rapport with the external team to ensure everyone is united in achieving shared objectives.

Poor communication

An inability to communicate effectively can lead to a breakdown in team dynamics. Misunderstandings arise, hampering teamwork and unity.

Establish the project’s boundaries from the get-go to avoid miscommunication and ensure everyone is on the same page.

When you work with a top IT staff augmentation company like WillDom, you will never feel the effects of poor communication. The staff augmentation process is incredibly transparent, and the staff is always willing to answer any questions.

When is staff augmentation the best choice?

Staff augmentation services are the best choice when you need to fill a staffing gap for a short-term project quickly, require highly specialized skills that are not available in the internal team, or temporarily replace a staff member.

What Is Outsourcing?

Outsourcing is the process of hiring an outside firm or individual to handle a business process or task that would usually be handled by the in-house team while still retaining complete control of the project. It is often used as an effective way to reduce costs, improve efficiency, and increase a company’s focus on core competencies.

The advantages of outsourcing

Increased focus on core competencies

Outsourcing can reduce the stress on the existing team, allowing them to focus on the company’s core competencies. This can help reduce burnout, improve morale, and increase job satisfaction.

Access to a global talent pool

Outsourcing allows companies to access a global talent pool, enabling them to recruit and hire people from anywhere in the world. This provides access to a wide range of skills and expertise, allowing for improved innovation and creativity.

Increased efficiency

By outsourcing, companies can reduce overhead costs and increase efficiency. This can reduce the time and money spent on non-essential tasks and processes, allowing the company to remain agile and responsive to market changes.


Outsourcing can also lead to increased innovation by using the skills and expertise of outside firms to develop new products and services, keeping the company ahead of the competition.

Potential challenges with outsourcing

Communication issues

Outsourcing to a different country or region can lead to potential cultural differences, like language barriers, making it difficult to communicate and manage the project effectively.

Ensure that everyone involved in the outsourcing process knows the language and cultural differences between locations to minimize potential communication issues.

Legal issues

Companies must know the various laws and regulations that could affect their outsourcing agreements. This includes data protection, intellectual property rights, and labor laws.

Thoroughly research the laws and regulations of the region you are outsourcing to and ensure that both parties know and comply with them.

Data breaches

Companies must ensure their data and systems are secure and protected when outsourcing to a third-party provider.

Confirm if your outsourcing firm has robust security protocols to protect any confidential information shared.

With WillDom, for example, you can rest assured that your data is protected with our enterprise-grade security systems and protocols.

Time zone differences

Working with a provider in a different time zone can lead to challenges in scheduling meetings and meeting deadlines.

Take into consideration the time zone differences between locations when scheduling meetings to ensure they are at times that are convenient for both parties.

When is outsourcing the best choice?

Outsourcing is often the best choice regarding non-core business functions, large-scale projects with long timelines, and high-volume or repetitive tasks. It’s a cost-effective way to manage high-volume or repetitive tasks without hiring and onboarding additional staff, which can be costly and time-consuming.

WillDom's staff augmentation services can help you create the perfect development team.

What types of roles are commonly outsourced in the tech industry?

Outsourcing is the perfect way to access the specialized knowledge of highly trained professionals without making a long-term investment. There are a range of tasks that can be taken on through this approach, including:

Software development

  • Full-stack developers: Full-stack developers are responsible for the complete development cycle of a software product. This includes designing, coding, testing, and debugging the software and maintaining and updating the product after release.
  • Front-end developers: Front-end developers are responsible for the client side of a web application, including the coding and design of the user interface.
  • Back-end developers: Back-end developers are responsible for the server side of a web application, including databases, server-side languages, and APIs.
  • Mobile app developers: Mobile app developers develop native apps for iOS and Android and cross-platform apps that work on both operating systems.
  • DevOps engineers

Web development and design

  • Web designers
  • Web developers: Web developers are responsible for coding the website and creating the back-end structure. They are also responsible for troubleshooting issues and optimizing the website’s performance.
  • User experience (UX) designers
  • User interface (UI) designers

Quality assurance and testing

  • QA analysts: Quality Assurance (QA) Analysts are responsible for identifying and resolving any issues that arise during the development process by testing, analyzing, and reporting on the quality of the product or service.
  • Test engineers
  • Automation testers

IT support and services

  • Technical support specialists
  • System administrators
  • Network administrators

Data and analytics

  • Data scientists
  • Data engineers
  • Data analysts
  • Business intelligence analysts

Information security

  • Security analysts
  • Security engineers
  • Ethical hackers

Cloud services and management

  • Cloud architects
  • Cloud engineers: Cloud engineers are responsible for developing, maintaining, and optimizing cloud-based applications and services. They must be proficient in cloud technology and understand the specific requirements of the organization’s cloud infrastructure.
  • Cloud consultants

Project management and business analysis

  • Project managers: A project manager is responsible for the overall planning, execution, and success of a project. They oversee the budget, timeline, and resources needed to deliver the project on time and within budget.
  • Scrum masters
  • Agile coaches
  • Business analysts

Can entire projects be outsourced?

Yes, projects can be outsourced. Ideal scenarios for project outsourcing include complex, one-off projects, projects requiring a diverse set of skills, projects with tight deadlines, and projects with limited internal resources. Outsourcing these types of projects can help organizations save time and money and access the expertise of external professionals.

What Is the Difference Between Staff Augmentation and Outsourcing?

The primary difference between staff augmentation and outsourcing is that staff augmentation involves acquiring additional personnel to supplement existing staff, while outsourcing transfers specific business activities, processes, and functions to external software development companies.

Which one is right for my business?

The best option for your business depends on your specific needs. Staff augmentation is a good choice for short-term projects that require particular skills and expertise. At the same time, an outsourced team is better suited to long-term projects that need to be handled continuously.

Factors to consider when choosing between staff augmentation and outsourcing

When choosing between staff augmentation vs. outsourcing for a software development project, it’s essential to consider both short and long-term ramifications. To make the most informed decision, ask yourself the following questions:

Short term:

  • Immediate resource needs: Are there any immediate needs that must be addressed? How many staff members are needed to meet the immediate resource needs? Who is currently available to fill the immediate resource needs?
  • Project timeline: What is the timeline for the project? How quickly do the resources need to be acquired? Are there any foreseeable delays in the project timeline?
  • Budget constraints: What is the budget for the project? How much is the budget for staff augmentation or outsourcing? Can it meet the budget constraints while still getting the desired outcome?
  • Management capacity: What is the current management capacity? Are there enough staff members to oversee staff augmentation or outsourcing? Is there enough training available for the staff to manage staff augmentation or outsourcing?

Long term:

  • Knowledge retention: How will knowledge be retained when using staff augmentation or outsourcing? What measures will be taken to ensure learning is maintained? How can the knowledge be transferred from the staff augmentation or outsourcing company to our business?
  • Intellectual property and data security: What measures will be taken to protect the company’s intellectual property and data? How can the company ensure that the staff augmentation or outsourcing provider will not misuse or steal the company’s data or intellectual property? What is the process for verifying that the staff augmentation or outsourcing provider complies with data security standards?
  • Scalability: How easily can the staff augmentation or outsourcing be scaled up or down? Is there enough flexibility in the staff augmentation or outsourcing model to accommodate future changes in resource needs? What is the process for increasing or decreasing the number of staff members?
  • Core competencies: What are the core competencies of the staff augmentation or outsourcing provider? Can the staff augmentation or outsourcing company provide the necessary resources for the project? Is the staff augmentation company or outsourcing provider knowledgeable in your industry?

Staff Augmentation Real-Life Case Studies

WillDom’s staff augmentation service has proven time and again to be an invaluable asset, providing specialized professionals to bolster in-house teams and deliver tangible results, improved efficiency, cost savings, and a competitive edge.

Read the following WillDom staff augmentation case studies to find out how companies have leveraged this approach to reach success:

WillDom’s success story with staff augmentation in the cloud management industry

WillDom’s Cloud-specialized developers aided a leading spa management software and online scheduling system in its international expansion and modernization journey.

Their work included:

  • Creating a reservation setter
  • Integrating payment methods
  • Developing a CRM for spas – all of which resulted in a superior customer experience and digital transformation

Technologies like ASP.NET Web Forms, .Net, MongoDB, SQL Server, AWS, and Amazon S3 were utilized to help the customer reach its goals. After four years of successful collaboration, the client achieved a wider reach and improved services.

WillDom’s success story with staff augmentation in the healthcare industry

WillDom’s client is a trailblazing force in the healthcare industry, revolutionizing how care is provided. By offering a comprehensive platform to treat patients throughout their journey, they have set an ambitious goal of reaching 20K users.

To this end, WillDom developers have stepped up to the plate, collaborating with the team to enhance the assessment and monitoring process, roll out new forms for data collection, and polish the mobile and visual design. Not to mention, they’ve improved push notifications as well.

As of August 2020, six developers have been working on the project, and WillDom is excited to continue pushing the boundaries and being a pillar of success for the client.

Can Staff Augmentation and Outsourcing Be Combined?

Yes, staff augmentation and outsourcing can be combined. For example, a company may outsource a particular task or project to a third-party vendor while also bringing in additional staff on a contract basis to assist with the entire project. 

By combining staff augmentation and outsourcing, businesses can access the necessary operational efficiency while keeping costs down.

The Future of IT

IT is an unending source of possibilities and inspiration, ensuring enhanced effectiveness, output, and ingenuity.

Emerging technologies and staff augmentation

As new technologies emerge and become more prevalent in the workplace, they change how companies approach IT outsourcing and staff augmentation. Companies increasingly turn to automation, artificial intelligence, and other emerging technologies to supplement their IT departments, allowing them to do more with less.

Adapting to the remote work and gig economy

Companies can no longer rely on traditional labor models and must be prepared to adapt to the changing landscape. This means that IT departments must be able to quickly and efficiently onboard remote workers and manage and maintain virtual work environments.

Staying ahead of the curve

Companies must be ready to adapt to new technologies, invest in training and education for IT staff, and actively seek out new and innovative solutions to problems. Companies must also ensure they are taking advantage of all of the latest developments in the IT world, such as cloud computing and artificial intelligence, to remain competitive.

Outsourcing projects is less expensive than hiring permanent employees.

Making the Right Choice – Let Willdom Help!

Are you torn between staff augmentation and outsourcing? Let WillDom take the guesswork out of the equation! Our experienced IT personnel will help you evaluate your budget, timeline, and requirements to determine which option is most beneficial for your business.

Contact WillDom today or on our LinkedIn and find the right IT staffing solution for your company!

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