Skip links

IT Outsourcing in 2024 and (How to Avoid) Pitfalls in Disguise

It’s 2024 and you have BIG plans! As they tend to do, big plans come along with big expenses.

Do you have a relatively small budget to allocate, but quite the goals to achieve? Do you have great ideas in mind but are not able to make them come true because you lack in terms of a tech team? With smaller budgets and leaner teams, achieving ambitious goals often seems like an uphill battle.

You said it! The answer is outsourcing. That is where team augmentation comes into play in the search of talented Experts who can fill the talent gap in your firm. In the fast-evolving IT landscape outsourcing has proven itself to be the way of turning your digital ideas into reality. When applied to the right project and business need, this model becomes a powerful means for accomplishing business goals. Outsourcing helps in allocating funds and resources more efficiently and allows businesses to scale their operations up or down quickly in response to changing market conditions or fluctuations in demand. Instead of maintaining a fixed internal workforce, businesses can adjust their outsourcing agreements based on their current needs.

There are numerous types of outsourcing. Team augmentation and staff augmentation are terms often used in the context of expanding a workforce, especially in the field of information technology and software development. While they are related concepts and often even used interchangeably, they have subtle differences. Let’s take a look.

Team and Staff augmentation, what’s that all about?

Team Augmentation, by definition is project-focused, bringing in a group of individuals to work collaboratively on a specific task or project for a defined period of time while Staff Augmentation on the other hand is oriented towards a long-term engagement. According to Google Trends the terms have been heavily on the rise for several years now, effectively becoming one of the most eye-catching strategies in the IT landscape in 2024.

Search term volume for "staff augmentation" for the last 5 years according to Google Trends.

And rightfully so, these models fill the skill gap and enhance the in-house team’s capabilities. It acts as the perfect strategy for businesses that are looking to hire external resources but also want to have control over the outcome.

But let’s give an example, shall we?

Case 1: Developing a Mobile Application

Suppose a software development company has secured a project to develop a mobile application for a client. The company’s existing team primarily consists of backend developers and web designers, but they lack expertise in mobile app development. To meet the requirements of the project, the company decides to augment its team by bringing in additional professionals with the necessary skills.

Businesses are increasingly turning to the help of augmented teams to transform ideas into reality and bridge the skill gap, so that they can strike a balance between productivity and profitability.

Staff Augmentation tends to be focused on a company’s long-term needs, often involving hiring individual professionals to fill ongoing gaps in skills or resources.

Staff augmentation involves hiring additional personnel for an extended period of time to address ongoing needs within a company. This could be to fill skill gaps or to handle increased workloads. Unlike team augmentation, staff augmentation may involve hiring individuals with specific skills or roles rather than forming a complete team. It is often part of a company’s strategic workforce planning, helping them scale up or down based on business demands.

Case 2: IT Support for a Growing Company

Imagine that a growing e-commerce company experiences an increase in customer inquiries and technical issues as their business expands. The company’s in-house IT team, composed of a few IT specialists, is struggling to keep up with the growing workload and demands. They identify the skill gaps within its existing IT team, recognizing the need for additional personnel with expertise in specific fields. To address this ongoing need, the company decides to include staff augmentation in its strategy.

In summary, the primary distinction lies in the duration and scope of the augmentation. Your ideal augmented team awaits, but the challenge lies in navigating the vast pool of available options.

In search of the right one

Be aware of good practices to avoid bad ones.

In the excessively dynamic world of technology, finding the right development team is a crucial step for the success of any project. However, the quest for the perfect fit is riddled with challenges, and being aware of good practices can be the compass guiding you through potential pitfalls.

Location, location, location…

The popular real estate mantra is as valid as ever when it comes to the tech industry. Many companies may boast a US-based facade to appeal to a wider market, whereas a genuine partner, on the other hand, is not afraid to embrace their roots. Companies with well-established IT hubs in Eastern Europe like Bulgaria, Poland and Ukraine often bring a unique blend of skill, innovation, and cost-effectiveness.

These regions are known for their fast internet connectivity, vast talent pool of Experts and cutting-edge tech solutions. These dynamic environments allow you to harness the rich expertise and innovation that Eastern Europe has grown to be known for. Yes, these specialists may or may not have a little bit of accent, yet they bring a unique point of view and vast expertise to your projects.

What attitude should you be looking for?

A reputable development team is transparent about its past and ongoing projects, yet discrete when sharing details about clients. It is vital to delve into individual candidate profiles, conduct thorough interviews and administer practical tests before you onboard your new hire. Тhe better we understand your project objectives, the better the project will turn out. Taking a close look at a company’s background, portfolio, and reviews provides a comprehensive understanding of their capabilities and reliability. Make sure your team’s expectations are aligned with your project goals.

Try out a pilot task

The pilot task allows the client to test the outsourcing company’s capabilities in a controlled environment before scaling the arrangement up. Throughout the pilot task, the client corporation closely monitors the progress of the outsourcing company. They track key metrics such as code quality, adherence to specifications, responsiveness to feedback, and timeliness of deliverables.

Unveiling the real talent

The road to success when hiring developers lies in a meticulous vetting process. A noteworthy caution is the prevalence of teams presenting junior developers disguised as seniors. To avoid falling into this trap, trustworthy vendors present their clients with the opportunity to interview every member of your future team to ensure they genuinely possess the skills they claim.

Such vendors often become powerful partners in achieving your company’s goals.

The subcontracting trap

To ensure smooth project execution, it is crucial that the hired candidates are directly employed by the company providing the augmentation services, eliminating the risk of hidden subcontracting. The vetted team should be an integral part of the company’s workforce, which will in turn ensure better communication, accountability, and seamless collaboration throughout the project’s duration.

Do you have clear objectives for your outsourcing journey?

Process refinement within the client company is crucial when seeking an augmented IT team. Acting fast is key because talented individuals are in high demand. This initial phase is like laying the groundwork for a successful relationship. It’s important to be specific and act quickly.

Avoiding the trap of miscommunication is vital. The clearer the understanding of your requirements, the smoother the collaboration. Preparation is essential to ensure your processes and workflows are streamlined to succeed across time zones and cultural barriers. Taking proactive steps paves the way for a more efficient and fruitful partnership.

The better we understand your project’s peculiarities, the better the result.

Voila! It’s a match!

Outsourcing has positioned itself as a key strategy in 2024 for organizations aiming to do more with less. Both Team and Staff augmentation make it easy to ramp up your development process and by leveraging the strengths of outsourced talent, businesses can bridge skill gaps, control costs, and drive growth.

Don’t start slow – outsource methodologically with the help of powerful Allies.

This website uses cookies to improve your web experience.