If you need developers for a new project, you may be looking offshore. That makes sense, as you can get global talent at decent rates, fast.
But here’s the thing. There are two different ways to do this.
Outsourcing is handing off a project to an external team. You tell them what you need to build, they go build it, and deliver the finished product. They handle the heavy lifting.
Skill augmentation is different. You’re bringing in professionals to your existing team. They work alongside your people, follow your workflows, and use your tools. More like hiring remote employees.
Let’s compare the two methods via some factors.
The Way You Manage The Team
In outsourcing, you tell the vendor what you want out of the project. Their team handles the rest. Their project manager takes care of the project tasks, progress, and daily decisions. You’re involved in kickoffs, reviews, and deliveries, but not in day-to-day tasks.
Skill augmentation puts management in your hands. The offshore developer works directly with your team lead or manager. They will join daily meetings, code reviews, and sprint planning sessions. You give them tasks, set deadlines, and offer feedback once in a while.
No approach is the winner here. It depends on whether you want to delegate management or retain it.
The Flexibility Factor While Outsourcing Projects
With normal outsourcing, asking for changes or modifications is a bit formal. Need to modify features mid-project? That’ll involve documentation changes, revised quotes, and new timelines. The vendor needs to reallocate their resources and adjust their planning.
It’s structured, simple, and provides clarity, but it’s not fast.
Offshore skill augmentation offers a bit more flexibility. Your offshore team members can switch things up like any employee. If your priorities change, inform them in your next meeting. You don’t really need to be formal.
For instance, your marketing team suddenly needs a dashboard feature that wasn’t in the original plan. With outsourcing, you have to draft a change request and wait for approval. But with augmentation, you can just discuss it in the next planning session.
The Initial Setup Costs
The upfront financial commitment differs between these two approaches.
For starters, outsourcing comes with a lot of expenses to get going. You may have to tackle costs related to project documentation and the contract.
- Contract expenses can include payment cycles, intellectual property rights, project milestones, and confidentiality agreements.
- Some vendors charge fees just to get started.
- You might pay for initial planning meetings and trial work before the real project begins.
Skill augmentation usually has lower initial expenses. You’ll start looking for candidates, interview them, hand out assignments, and on-board the ones you like. Once hired, you’ll pay their salary from day one, but there aren’t any large upfront fees.
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Adding or Reducing Team Size
When you start a project, your team may need more hands on deck when requirements change or increase.
In outsourcing, if you need more work done, you can start a new project. Or, you can expand the one you already have. The vendor will check your request and figure out the number of people actually needed for the job. After that, you’ll get a new or revised proposal.
This will include the newly updated timelines and project costs.
Skill augmentation scales by individual workers. Need two more developers? Hire two people. Need to cut back? Reduce the headcount. It’s a flexible way to add more resources to your team. Such a convenient vendor is CodeClouds, who’ve been offering great offshore outsourcing services for years. Connect with them for your next project!
Suppose your workload suddenly doubles. With outsourcing, you’ll need to start another contract for more deliverables. But with augmentation, you just have to hire more professionals who can start within weeks.
Offshore Skill Augmentation vs Traditional Outsourcing: When to Choose an Approach?
The way to onboard talent or opt for external assistance will depend on many factors. Offshore augmentation is ideal when:
- You need to connect and collaborate daily.
- The project requirements can change eventually.
- You need specific skills to fill gaps in your existing team.
- You want to directly handle priorities and task assignments.
- The project needs constant iteration and feedback.
You can go for traditional outsourcing when:
- Your project details are well-defined and probably won’t change.
- You don’t need to connect with developers daily.
- You don’t have time to manage the team and want to delegate it.
- You prefer predictable costs with fixed project budgets.
- The project doesn’t need frequent feedback.
Remember, the choice will also impact your overall project investment. It’s best to think about the other related expenses you may have, like marketing or research.
The Bottom Line
Both outsourcing and offshore hiring can let you tap into global talent. And yes, you might save some money. But the approaches are a lot different.
Outsourcing is all about asking others to work on your project. You hand off work, the vendor delivers results. It’s structured and keeps you in the loop. Augmentation is all about expanding your team. You add people who work directly with you, following your processes and building your product.
So, before picking an approach, understand the differences and match it to your needs. You’ll avoid months of frustration.
