An emerging trend in today's business world is the concept of globally distributed teams. While this isn't a new or modern practice, it has grown in popularity in the context of the coronavirus outbreak. Working with a worldwide workforce is no longer the bogeyman it once was, thanks to businesses all over the world being compelled to operate remotely.
Today, the acceptance is reflected in a variety of work arrangements, including outsourcing, staff augmentation, and offshoring. In this article, we examine and contrast two prominent software development models: IT staff augmentation and offshore development.
IT staff augmentation, a cost-effective outsourcing solution
Staff augmentation is a business concept in which companies assess their current workforce and estimate the additional talents needed to complete a certain project. They can then hire temporary external staff with specialized expertise to supplement their organization's existing capability. This enables them to complete projects on time and under their company goals.
When to use IT staff augmentation
To increase capacity to meet a sudden demand
There has been a sudden, unexpected rise in demand for your products and services in your city as a result of a series of break-ins. The ideal answer in this situation is to hire a team for a few weeks. This is where IT staff augmentation might be advantageous.
To access skills for one-off projects
You might have a fantastic local development team on your hands, one that is more than capable of delivering software on time. However, your company may occasionally take on a project that necessitates specialized expertise that your current workforce lacks. In these situations, IT staff augmentation allows you to add skilled developers to your existing team to help finish the project.
To stay ahead of the competition
Businesses can use IT staff augmentation to remain ahead of the curve in some circumstances. For example, if your firm needs to get a new product to market before a competitor or launch a new feature on your website on a priority basis, you can use the staff augmentation model to engage flexible workers on a contract basis who can deliver rapidly.
The benefits and drawbacks of IT staff augmentation
The advantages of staff augmentation
Businesses can engage staff on a contract basis and only pay them for the tasks they complete.
IT staff augmentation is a cost-effective way for organizations to get on-demand, specialized talents without having to invest in infrastructure or training.
Opportunity to focus on the main business
Businesses could focus on their core strengths instead of worrying about organizational and administrative tasks since they collaborate with an external provider.
The disadvantages of staff augmentation
Because it is billed on a time-and-materials pricing model, and you may be charged for services you have not used.
The potentially high turnover is because of employees who often work on a short-term contract or freelance basis.
Not sustainable over the long term
Because the people you hire may need to take on other projects or leave the vendor company mid-project, this strategy is not a long-term option.
Offshore software development, a dedicated team
Finding outstanding in-house IT talent might be difficult due to competitive competition and a severe scarcity of engineers. The solution to this problem is offshore software development.
The benefits of offshore development
The advantages of offshore development
By going offshore, you no longer have to engage with external vendors to fulfill the internal capacity. Extension of your local team.
Instead, you can access the vast talent pools in emerging tech centers in ASEA to build a dedicated team of competent engineers in another country.
In every sense, the team is yours – they're full-time, permanent workers that work as a value-added extension of your local team.
Both IT staff augmentation and offshore development have their own set of benefits and drawbacks.
Staff augmentation is usually the best solution for short-term projects that don't last longer than a few months. Offshore development, on the other hand, is the way to go if you're a firm trying to improve its operations by assembling a team hand-picked from a large pool of talent while maintaining complete control over the process.