When firms require additional staff to perform various jobs, they can choose from several options. Two of the most common ones are staff augmentation and outsourcing.
Staff augmentation vs outsourcing depends on the firm's needs and staffing capacity. The two have significant differences, and learning them could help you determine which is best for your business. Continue reading to find out more about the differences between staff augmentation and outsourcing:
Project Management
The staffing avenue you choose will largely depend on your project. Therefore, you should perform a conclusive evaluation of the project's staffing needs before choosing one.
Staff augmentation is ideal for short-term projects. If you require a few extra hands in several positions, you can augment your staff with several employees until the project is complete.
Alternatively if you have a long-term project, you should choose outsourcing. By outsourcing, you can establish a long-lasting relationship with a third party lasting more than five years.
Control and Responsibility
Another critical element to consider before choosing between staff augmentation and staffing is the control and responsibility you want over the project or results. If you choose wrong, it could have severe implications.
Staff augmentation gives you more access to employees and controls over the project. They will be working in-house, and you can manage what they do so they match the project's needs and goals. You will ultimately be responsible for their work and the project's results.
When outsourcing various business operations, you cede control to a third party. Therefore, they will share significant responsibility for the project's outcome. Less control means you have less say in how the work is done, meaning you must carefully choose whom you outsource operations to ensure project success.
Security and Confidentiality Risks
Security is paramount when working on a project and will influence how you choose your staff. You will, of course, want to select the most secure option for the project.
Outsourcing, especially offshore outsourcing, presents significant security risks. You will be sharing proprietary information with a third party for them to contribute successfully to the project. When sending information across thousands of miles, you also make the data more vulnerable to security breaches.
Outsourcing makes security very challenging for your firm.
Staff augmentation means employees come into a work environment that already exists. Therefore, they will use the same security protocols currently in use. You can also closely monitor them, which further reduces confidentiality risks.
Long Term Sustainability
Some firms have been successfully outsourcing their business operations for decades. However, offshore outsourcing is risky to a company's long-term sustainability.
A company can rely on a third party's presence and assistance to the point that the latter becomes seminal to business success. Therefore, offshore outsourcing puts a business's long-term sustainability in jeopardy.
With staff augmentation, you only rely on the staff briefly. There is little dependence on them as they are easily replaceable. So, long-term sustainability is unlikely to be unaffected by staff augmentation.
There are significant differences between staff augmentation and outsourcing. Every firm and project can use either, depending on which is helpful. Evaluate yours and come to a conclusive decision about which is most advantageous.