Staff augmentation and IT outsourcing are two common ways businesses handle IT needs without relying solely on in-house teams. The key difference is that staff augmentation adds outside specialists to work under your management, while outsourcing transfers IT responsibilities to a third-party provider.
Key Takeaways:
- IT staff augmentation adds temporary specialists to your internal team so you can maintain control over projects while expanding your workforce as needed.
- IT outsourcing assigns IT responsibilities to a third-party provider that manages the work, tools, and staff based on a service contract.
- Staff augmentation is often better for short-term projects requiring direct oversight, while outsourcing can be more efficient for ongoing IT services.
Many companies believe there are only two options for managing IT services like network repairs: in-house employees or a third-party firm. But are your choices really that limited?
The modern IT industry is constantly evolving, which has led to new service models, including staff augmentation and hybrid management solutions. By taking the time to compare staff augmentation vs. IT outsourcing, your business may benefit from improved cybersecurity, productivity, and profits.
WHAT IS IT STAFF AUGMENTATION?
Staff augmentation means temporarily supplementing your workforce instead of hiring new full-time employees. With this outcome-based alternative to the traditional hiring process, you add qualified workers to your teams on a short-term basis or for specific projects.
For example, if your company is struggling to meet an important delivery deadline, you can use staffing augmentation to bring in extra hands. These added workers can assist until your project finishes or for specific milestones that get you up to speed.
How staff augmentation works
Most of the time, IT staff augmentation involves recruitment outsourcing. An experienced staffing firm handles the entire recruitment process, including interviewing, vetting, and training candidates.
This agency maintains a list of available contractors and their skills, specializations, and certifications. When you need additional workers, the firm finds the right matches for your project and integrates them with your team.
Pulling from an existing pool of candidates speeds up the time to hire. If necessary, the agency can also recruit new candidates to fulfill specialized requirements for your organization, such as cybersecurity expertise.
IT staff augmentation options
Staff augmentation is a flexible hiring solution that can work in a few different ways depending on your needs:
- Project-oriented hiring, such as app development or data center installation projects
- Short-term staffing, usually for two to six months
- Seasonal hiring, to expand your workforce smoothly as client projects ramp up
- High-volume deployment for basic but time-consuming projects
- Specialized knowledge applications, such as cloud migration or IT infrastructure planning
IT staff augmentation is closely related to other temporary hiring models, such as contract-to-hire.
Worker pay depends on the project. Hourly rates are more common, but some contractors charge set fees per project or deliverable.
WHAT IS IT OUTSOURCING?
IT outsourcing means hiring a third-party company to manage some or all IT responsibilities. Outsourcing is common for desktop support services, network maintenance, app development, and cybersecurity management.
Both staff augmentation and IT outsourcing involve working with a third-party agency. Technically, you could say that IT staff augmentation is a type of outsourcing, but the work environment is very different.
When you outsource IT, you leave things in the hands of the service provider. You don’t need to worry about hiring workers, managing schedules, purchasing tools, or balancing project costs.
Types of IT outsourcing
IT outsourcing providers generally offer several models to fit organizations of different sizes. Common options include:
- Managed Services: Comprehensive project management, network support, help desk, or cybersecurity services, usually involving a package or subscription
- Break-fix Models: Versatile plans where you only pay for the technician’s time as needed, such as network repairs, hardware replacement, or equipment troubleshooting
- Hybrid Support: Custom service contracts where third-party employees handle some IT tasks and your in-house team manages others
- Remote Services: Fully digital IT services and software platforms, such as IT support, DDoS protection, network security monitoring, and vulnerability scanning
All IT outsourcing involves service level agreements. These contracts outline the scope of work, tasks, costs, project length, and other details.
Cost of IT outsourcing
IT outsourcing costs can follow several pricing models. Expert contractors usually charge by the hour (or fractional intervals). Break-fix technicians often use a table with different fees for each service. Managed service plans often have a set monthly fee.
HOW ARE IT STAFF AUGMENTATION AND IT OUTSOURCING DIFFERENT?
This quick-reference chart can help you understand the key differences between staff augmentation and IT outsourcing models.
|
IT Staff Augmentation |
IT Outsourcing |
|
|
In charge |
Your team |
Service provider |
|
Responsible for payroll |
Varies, usually the staffing firm |
Service provider |
|
Role flexibility |
High; adapts to project needs |
Low; restricted to contract terms |
|
Key benefits |
Rapid team expansion, in-house oversight |
Complete project management, broad scaling capabilities |
|
Pricing model |
Hourly or monthly rates |
Contract pricing or break-fix fees |
Which is more cost-effective, IT staff augmentation or IT outsourcing? Pricing varies by firm, and it also depends on the expert services you require.
In general, staff augmentation means lower fees and spin-up costs for short-term projects. Outsourcing can often save your company money for long-term IT services, especially with a break-fix model.
With both options, experienced and qualified professionals take care of the services you need. Both also make life easier on your HR department; there’s no need to worry about advertising roles, filtering applications, conducting interviews, or handling training.
WHY CHOOSE STAFF AUGMENTATION VS. IT OUTSOURCING?
Staff augmentation provides many of the benefits of in-house and outsourced services at the same time.
Control over the project
With IT staff augmentation, your team controls every step of the project. You determine objectives, processes, and procedures. Even if augmented staff members get paid by a staffing agency, those workers take their orders from you.
Worker oversight
Staff augmentation is an excellent fit for projects with regulatory requirements or tight cybersecurity restrictions. Because the added IT staff work under your roof, you have greater visibility into the tools and techniques they use.
Faster onboarding and scaling
For most IT roles, staffing agencies can quickly connect your business with the additional workers you need. Getting the new team members up to speed — even for in-progress projects — is generally faster than the time required to negotiate and approve a service contract.
Potential knowledge sharing
When staff augmentation involves longtime IT experts, having these professionals working side-by-side with other members of your team can have a “passive training” effect. Experienced IT workers may share tricks of the trade, teaching better practices to your newer employees.
WHEN SHOULD YOU USE IT OUTSOURCING VS. STAFF AUGMENTATION?
IT outsourcing services provide greater convenience for your organization, leaving important IT tasks in the hands of experienced professionals. This reduces the need for in-house employees, often saving money, simplifying projects, and freeing up your staff for the jobs they excel in.
On the other hand, outsourcing also means turning over management to a third party. You may not be able to see the day-to-day processes, only the results. This can introduce cybersecurity risks, especially if you choose vendors based on the lowest pricing instead of their reputation for trustworthiness.
EXPERTS IN IT STAFF AUGMENTATION AND IT OUTSOURCING
At TSP, we’re more than a staffing agency and more than a tech support company. Our team has decades of experience with IT solutions for small, mid-size, and enterprise organizations, from network support to managed infrastructure services. We offer a complete range of IT outsourcing and recruitment services, including staffing augmentation. Request a quote for more details.
