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Differences between Outsourcing and Staff Augmentation

Outsourcing is the way companies subcontract digital talent services, for example, management or hiring digital talents, through other company to a given project or period.

In digital talents market, this is a practice of hiring external specialized professionals to perform particular tasks, from conception, planning, definition, management or digital products creation, for example.

But, after all, what is this strategy and why has it been used more and more in Digital Transformation initiatives in companies of all sizes?

Outsourcing is a great ally of managers when simplifies and streamlines teams fast growth, once that, in many cases, it’s possible to expand your team through third parties without involving Human Resources.

The fixed costs reduction, that starts representing project variable costs, also help to obtain stakeholders and C-Level’s approval, because it doesn’t rely on headcounts availability.

The strategy counts with highly qualified external specialists work in specific fields, like Design, Software Development, Infrastructure, Data, Digital Marketing, and Agile, building digital product squads.

Each one of these areas entail even more specialization. Using Design as an example, the teams may be formed of Strategist Designers, or Product, User Experience (UX), User Interface (UI), Research and Service Designers. Not to mention the fields of expertise that blend with Technology, like Design Ops and Design System specialists.

In a matter of days, not weeks or months, its possible to add “Rock-Stars” to your teams, temporarily or permanently. What makes them different is their living in different environments, companies and consultancies, accelerating the innovation processes and powering the digital transformation, growing or organizing process. Besides, the professionals can be absorbed into fix positions in the managers team in the future.

And, finally, when hiring a company that’s expert in finding, selecting and managing the best digital talents, the manager can focus on the core business. Less time lost, better results!

Source: brainub.eu

And what are the advantages of outsourcing?

  1. RESOURCES FLEXIBILITY. Senior specialists at work, taking less time to complete tasks without the need of using your company’s resources.
  2. PRODUCTIVITY. By hiring an outsourcing company or design and technology professionals, you can bring new visions and allow your team to concentrate on the company’s core activities, increasing the efficiency of other work lines and focusing on key tasks.
  3. COSTS MANAGEMENT. Transforming Fix Costs into Operational or Project Costs reduces investments, eases internal approval, and enhances the capacity of adapting to uncertainty environments.

The team is made up of reliable people who produce a high quality work. As the internal processes are well established, the team is happy with how the remote model is working for them.

Stepan Suorov – Vice-presidente de engenharia – Studybe (Holanda)

STAFF AUGMENTATION

Staff augmentation, means “team increase” and it’s an expertise inside the Outsourcing model. It is a very powerful tool for any organization, but many do not know its many possibilities and how to choose the most suitable model.

Currently, one of the meaningful trends in highly unpredictable markets all over the world is the growth of outsourced teams and professionals specialized in Design and Technology.

Due to the market impacts caused by the new Coronavirus pandemic, the managers started planning in shorter scenarios (6 months instead of yearly), in need to seek models of adaptation and flexibility.

There are a wide variety of scenarios in which companies take advantage of Staff Augmentation, including:

Source: toptal.com

Most organizations use a combination of suppliers and models, depending on their needs. When you think about growing the team, it’s essential to determine what you want to accomplish and what is most important. If you are looking for a Senior UX specialist, for example (a widely requested skill) prioritizing only the speed and the cost is not recommended. Experience and specific skillsets are crucial.

With a wide variety of staff augmentation models available to organizations, it is essential to evaluate the pros and cons of each model according to your needs even before selecting a suitable provider.


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