For most enterprises, it isn’t as simple as following a staff augmentation model or a project outsourcing model. Sometimes there might be an overlap of needs to get the job done on time. So when that happens, a hybrid approach might be the best option.
In this scenario, project outsourcing option and the staff augmentation model are blended to meet the specific needs of the project. It can also be implemented at different stages during the development cycle, but careful planning will be required to map it out in an efficient manner.
As far as hybrid approach is concerned, there’s a whole new trend of software development team outsourcing, i.e. you partner with an outsourcing provider to build your own dedicated product development team offshore (2+ time zones away) or nearshore (the same time zone), leverage external tech talent pools and retain as much project control as possible.
That being said, you set up your development team remotely by using your provider’s resources, office space, IT infrastructure, etc. and have your outsourcing partner take care of your candidate selection and screening, IT hiring, project management, and deliverables. However, this approach requires that you dedicate certain resources to manage your remote project and get involved in your project development at all stages, from candidate interviewing and hiring to onboarding and training to your product release and evolution.
Considering a tremendous shortage of onshore IT skills and a continuous challenge of saving costs without compromising on product quality, this model seems to be the most effective one.
The advantages are obvious:
- You rid yourself of HR, IT and admin hassle by offloading team setup and boost work to a professional 3rd party provider.
- You have full predictability, as your team cost will be recurring from month to month unless you decide to scale it up or down depending on your current financial situation and project needs.
- You access a new pool of fresh talent not seen elsewhere by local IT recruiters/agencies.
- In case of offshore team outsourcing, you don’t have to extend your office space to host more people in your team and actually pay half the price for your IT talent, which enables you to save money and increase your advertising/marketing spend, etc.
Yet, be ready to visit your remote team on your provider’s site often, as this approach implies intense face-to-face communication and knowledge sharing.
Figuring out which model suits your project needs best can be a complex task. What will help support your decision is a detailed cost-benefit analysis. This decision can be made internally or with the help of an external consulting firm.