When looking for your software development services, you have many options.
Do you hire new permanent employees to expand your existing in-house team? Or would it be faster and cheaper to outsource to a few temporary workers? What if you need a broad range of specialist skills at once? Then would it be better to approach a project-based consulting agency?
The correct answer depends on a wide range of factors. This includes the skills and capabilities of your existing in-house team, what skill shortages you currently face, the unique requirements of your project, your short and long-term goals, the ideal outcomes you hope to achieve, and most importantly, your budget. Together, these deciding factors have a huge influence on what the right choice is for your business.
Let us help you understand the differences between staff augmentation vs Consulting to make an informed hiring decision. Each hiring approach has its pros and cons, and it is worth knowing what they are before you commit to your decision. This way, you will find the process more streamlined and the outcome satisfactory.
Staff augmentation vs consulting: What is staff augmentation?
Staff augmentation is a simple concept to understand. It is when a company hires one or more third-party specialists to complete a project for their company.
These augmented staffs are typically hired temporarily. They are only paid for their hours with no usual employee benefits like sick leave and paid holidays. For this reason, the hourly rate for staff augmentation is usually higher than if you were to hire in-house, but you save money by not paying for employee benefits.
Augmented staff is also typically hired for projects where the guidelines, parameters, and expectations are already laid out. They don’t actually bring anything ‘new’ to the table, at least in terms of the project scope. The hiring company has taken care of that part.
Therefore, the augmented staff are quickly brought on board, instructed on the project scope and expectations, and ingratiated into the current in-house team to complete the project.
Regarding staff augmentation vs. consulting, the two are pretty different. Compared to staff augmentation, project-based consulting services usually have a more hands-on approach to a project. They are brought on to brainstorm, establish guidelines, define different workflows and procedures, and then follow those parameters to complete the project.
Staff augmentation vs consulting: What is project-based consulting?
Project-based consulting agencies typically provide a wide range of services under one roof, from conceptualizing and project planning through staffing, project management, and post-launch support.
They are an ideal choice for businesses that need help with establishing their project guidelines, determining the skills and capabilities they need, and getting the required resources to deliver the project goods. Therefore, consulting agencies play a much more significant role in determining a project’s scope and vision than staff augmentation, who typically join a project once the parameters are already established.
In addition to this, project-based consulting services provide ongoing supervision, feedback, and a high level of organizational adaption. This means that consulting agencies usually have a particular way of delivering the services they offer. While there is some level of flexibility, they typically have set service packagers and methods of providing those services to their clients.
They can also take onboard multiple clients instead of just servicing a select few clients. This makes it harder for a hiring company to get immediate support and feedback. The agency may have to prioritize other clients before getting to you.
Of course, some agencies may be better equipped than others to overcome those challenges, providing more consistent customer support.
How to choose between staff augmentation vs project-based consulting
Which options are suitable for you depending on your unique requirements.
IT staff augmentation is ideal for smaller projects where you need temporary staff with specific skills that are readily available. While consulting services are better suitable for projects where you need many types of specialists and generalists and help with planning and project management.
You also need to consider what you can afford with your budget. Is the higher hourly rate minus the employee benefits of staff augmentation the most cost-effective choice? What would it cost to receive similar services and results from a project-based consulting agency? Compare the two to decide which option provides better value for money.
Of course, you should also consider the best fit for your company culture. Will your team be receptive to augmented staff being brought into the fold? If not, what can you do to ease their concerns and ensure the collaboration between your in-house and augmented teams goes smoothly?
Encourage your in-house team to share their thoughts and opinions. This will help you secure augmented staff that not only fit your unique requirements but are also likely to get along with your in-house. By reducing the risk of conflict, you have a much better chance of a successful project.
These days, securing outsider talent is easier and more affordable than ever. But with so many ways to hire new staff, the choices can be overwhelming. Hopefully, this article’s helped you better understand the different hiring approaches you can take and their unique advantages and disadvantages.
There is much competition out there, so it’s wise to do your research and compare your options before making the final choice. This way, you will most likely find the right team for you (at the best price) and receive an outcome that satisfies all parties involved.
InApps assists companies worldwide in combating talent shortages by recruiting and retaining talented software engineers in Vietnam who work as an integral part of the client’s product development team. Our skilled and experienced teams can work on any software development project that you might need, as proven by their high customer retention rate.
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