IT Staff Augmentation Vs Delivery Teams

IT Staff Augmentation Vs Delivery Teams www.bacancytechnology.com

Quick Summary:

The world of IT has touched new dimensions, especially in the post-COVID era. With constant flux of new technologies, software outsourcing has become one of the most significant business strategies to manage new trends and achieve desired business goals.

In this blog, IT Staff augmentation Vs Delivery teams, I have covered the two most preferred outsourcing models of the software industry. Find out which one is ideal for your organization.

Outsourcing: Market Scenario

As per Capital Counselor, the global IT outsourcing market will be worth $397.6 billion by 2025. Citing Security Magazine, Capital Counselor informs that as a result of COVID-19, 89% of the surveyed industries needed to expedite their digital transformation in 2020.

This expedition was fraught with the danger of cyber attacks as the existing resources needed to be stretched beyond their capacity and efficiency. Therefore, in 2021, 83% of IT leaders are likely to outsource their work to a managed service provider (MSP).

Citing Infosec, Capital Counselor reports that the MSP market would reach $41 billion by 2022 due to outsourcing security functions. As per Orient, the IT industry will be worth $413 billion by the end of 2021. And, 70% of the estimated money will come from outsourcing.

As per, Statista, and Globe Newswire, the global IT outsourcing market will be worth $425.19 billion by 2026, and India’s IT outsourcing market is expected to be worth ₹8,830.14 billion ($120.67 billion) by 2025.

Citing Deloitte’s outsourcing statistics graphs, Capital Counselor writes that for the 70% of respondents in the survey, the top reason for outsourcing was a decrease in cost. 40% of the businesses outsourced to have flexibility. And, for 20%, speed to market was the reason for outsourcing, while for 15%, it was tools, processes, and agility that drove them to outsource.

In the light of these statistics, it is crystal clear that the rationale of software outsourcing is to realize the highest business potential along with building sustainable employee and customer relationships.

The software outsourcing industry came up with two models— autonomous Delivery Teams Vs Staff Augmentation to meet these expectations.

Let us then explore various dimensions of IT staff augmentation vs delivery teams.

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Delivery Teams

In this resource augmentation model, an external team consists of a seasoned manager, software engineers, and testers.

The main task of these delivery teams is to accomplish the software process seamlessly without much help from the in-house team.

Let us have a look at the advantages of delivery teams over staff augmentation.

Advantages of Delivery Teams Following are some of the major benefits of hiring delivery teams:

In this resource augmentation model, an external team consists of a seasoned manager, software engineers, and testers.

The main task of these delivery teams is to accomplish the software process seamlessly without much help from the in-house team.

Let us have a look at the advantages of delivery teams over staff augmentation.

Advantages of Delivery Teams Following are some of the major benefits of hiring delivery teams:

Delivery Teams Allow Businesses to Focus on Their Core Business One of the major reasons why businesses choose to hire delivery teams is that it lets them focus on their core business. Delivery teams primarily engage in tedious software development processes. It frees executives, project managers, and owners from participating in daily project management responsibilities, including supervising and monitoring the entire project and its people.

This freedom allows the executives to focus on the main software product. It also lets them maintain customer relations, brainstorm next projects, and build sustainable business strategies that help grow the business.

Delivery Teams Allow Managers to Respond to Industry Developments Faster The best part of hiring autonomous delivery teams is that they are ready to start the project immediately. This saves a lot of time that is usually involved in hiring an in-house team. Also, to hire an in-house team, businesses first need to have a clear concept of the product as hiring would be done keeping in mind the requirements of the stipulated project and other future products.

When businesses go for delivery teams, they don’t have to have the entire plan ready as these teams are so very experienced and accessible that they can start working immediately. Also, their adaptability to constantly evolving market trends makes them create a product that satiates customer needs quite well and faster.

Delivery Teams Help Reduce Financial Risk Creation of any customized software involves a lot of time and money. It is a huge investment in human resources and other logistics required to complete the project. The huge scale obviously involves huge financial risk, especially if the expected software fails.

The autonomous delivery teams play a significant role in reducing this financial burden in two ways:

1. The delivery teams include specialized engineers with vast experience of the work.

This aspect means they are super-efficient to overcome any challenge during the software development process.

2. This outsourcing model of delivery teams often involves payment after successfully completing the project. This means it does not require huge investment at the project’s outset. And, this means that the financial risk is divided between the outsourcing company and the delivery teams. Hence, it gives much relief to all the stakeholders involved in the project.

Delivery Teams Ensure Improved Software Security At a time when the whole world is going digital, there are many instances in which sensitive data gets compromised. When a business creates a customized software product, it cannot afford to let this happen to its customers. One of the goals of hiring efficient delivery teams is to ensure robust software security.

These teams have experienced engineers who are specialized in the matters of cyber security and data protection. These teams appoint qualified and efficient engineers to take care of an outsourcing company’s cyber security and data protection needs whenever it needs.

No model can be perfect. There are some disadvantages of autonomous delivery teams. Let us have a look at them.

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Disadvantages of Delivery Teams Following are some disadvantages of hiring delivery teams:

Lack of Control As they say, every idea has a contrary to it.

The idea that delivery teams allow the hands-on managers to focus on their core business has its contrary in the form of reduced control. Yes, though getting freed from the tedious daily responsibilities of software development is one of the goals of this outsourcing model, it creates confusion and frustration when executives, managers, and owners lose control over the project.

This often arises due to a lack of clear communication channels and accountability. When there is no clear communication about the daily updates and the project’s progress, the outsourcing company does feel a loss of control.

This can be easily resolved by setting up clear communication channels. These communication channels keep the project managers posted about each crucial step in the development process daily or as stipulated in the contract. This makes the outsourcing company quite at ease and in control.

Finding the Suitable Delivery Team

A highly efficient delivery team that is ready to work immediately and on cue is indeed difficult to find, if not impossible. The outsourcing company needs to have a trustworthy delivery team and meets or exceeds its expectations.

An outsourcing company may check the team’s business credentials with regard to its requirements. It is possible that a delivery team may be an outstanding leader in the industry.

However, it does not mean that it would do justice to the requirements of every project.

Therefore, when an outsourcing company wants to hire a suitable delivery team, it needs to check their portfolio or give them a sample work to make an informed decision.

A consciously chosen delivery team indeed proves to be an asset to the outsourcing company.

Investment in Training While it is true that delivery teams can start the projects immediately, they would still require some basic training to get oriented to the company and its culture. And, this would require the investment of time and money.

Many a times, delivery teams are hired for one or two projects. So, it does mean that if an outsourcing company wants to hire other delivery teams for some other projects, it would need to give them the necessary training from scratch.

And, this would certainly mean investing again and again whenever an outsourcing company wants to hire a delivery team for its different projects.

Staff augmentation is another software outsourcing model that an outsourcing company can consider to overcome the inherent challenges in delivery teams’ above-discussed software outsourcing model.

Also Read: Trending Approach To Build Next-Gen Products

IT Staff Augmentation : Better Outsourcing Alternative

In this model, you can hire dedicated teams to fulfill the existing tech skill gap in emerging technologies. This additional staff is tasked with providing their specialized expertise during the critical stages of agile software development process. At this point, staff augmentation proves to be a better alternative to delivery teams as it saves a lot of time and money for the outsourcing company.

Advantages of Staff Augmentation Over Delivery Teams C-level executives are always under a dilemma when choosing in-between Staff augmentation vs delivery teams. So, here’s the clear justification.

Delivery teams need to be hired for the entire project, whereas staff augmentation is about adding specialized experts to an existing team.

In this sense, an enterprise does not have to worry about finding an experienced team for the entire project. It only has to hire specialized experts that are efficient enough to complement the existing team.

For example, suppose an organization is working on a WordPress project. In that case, it needs to hire an entire team to execute the project if it is opting for delivery team model for software outsourcing.

But, in this software outsourcing model of staff augmentation, an enterprise can hire specialized WordPress developers who can make a real difference in the existing team’s roles and responsibilities to create a brilliant website for the clients.

This then eliminates the need to hunt for a group of individuals to execute the project seamlessly. The project is better served by the services of a couple of specialized experts in this software outsourcing model of staff augmentation.

Following are some more advantages of staff augmentation over delivery teams when comparing IT Staff Augmentation Vs Delivery Teams.

As staff augmentation is about hiring specialized individuals for specific needs of the ongoing project, it gives an outsourcing company access to niche talent across the world without any inhibition of border, race, or gender.

The experienced and specialized individuals are hired for specific business objective. This helps the business retain a lean and agile in-house team.

An outsourcing company gets flexibility as the staff augmentation model has no long-term employment commitment.

It also gives the companies tremendous scope to upscale or downscale their teams based on market trends or demands.

Staff augmentation also allows enterprises to create correct budgets and future business strategies.

Key Takeaway: IT Staff Augmentation Vs Delivery Teams

In this discussion regarding IT staff augmentation vs delivery teams, it is quite clear that each software outsourcing model has its advantages and disadvantages.

Enterprises can choose the one that serves their purpose the best.

However, staff augmentation services can be preferred when an enterprise wants to bring in specialized skills that are missing in the existing team. It can also be a better choice when an enterprise wants to scale an in-house team quickly without getting into the intricacies of hiring an entire delivery team.

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