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With more and more businesses going through digital transformation and adopting various business solutions, the demand for experienced software developers is only rising. Besides hiring an internal team, companies have another option: cooperating with third-party software development vendors who will deliver the result the business needs.
However, to achieve desired outcomes, you need to choose the right model to cooperate with the service provider. In this article, we will compare two common options: staff augmentation and managed services with its main pricing model called dedicated team. What option will be the most beneficial for your company? Let’s figure it out together.
All You Need to Know About Staff Augmentation
Staff augmentation is a process of hiring specific specialists on a temporary basis. You might ask: how is it different from regular hiring to your in-house team?
The main difference is that the specialist you are hiring is actually employed by a software development vendor. This company is responsible for employment details of the augmented developers, like compensations, benefits, equipment, etc., while you for an agreed fee get a full-time or part-time employee who will work under your management together with the rest of your in-house staff.
Staff augmentation is one of the most popular services the software vendors offer. There are even software companies that focus solely on staff augmentation and provide their clients only with this service.
How Does Staff Augmentation Services Work
The staff augmentation model implies that the vendor unites developers with different technical expertise and experience, who are working within clients’ development teams.
The vendor hires developers and takes responsibility for administrative aspects: signs an employment contract, provides employers with workspace, equipment, and other infrastructure, manages payroll and does taxes.
When a client comes to the staff augmentation vendor and requests a position to be filled with appropriate developers, the vendor initiates the hiring process that usually includes the next steps:
After that, the augmented developer integrates into the team. The cooperation term is unlimited: everything depends on the agreement the client reaches with the vendor.
The vendor usually charges clients by hours for every augmented specialist, so the monthly price might change depending on the scope of work the developers complete. The hourly rates vary on the basis of developers’ specialization, level of skills, and experience.
Pros and Cons of Staff Augmentation
What benefits can staff augmentation contribute to your in-house team? What tricky pitfalls does it have, and would your business be able to handle them?
Advantages of Staff Augmentation
Disadvantages of Staff Augmentation
All You Need to Know About a Dedicated Team Model
A dedicated team is a project outsourcing model which implies the next approach: the vendor provides the client with a team of specialists required to deliver the project and both parties share the responsibilities for the project’s success.
Usually, a dedicated team includes not only developers but UI/UX designers, QA engineers, business analysts, DevOps engineers, and other specialists your project might need.
There are two options on how the dedicated team can be managed: either by the manager from the client side or by the vendor’s project managers. We always suggest hiring a PM along with the outsourcing team, as it has proved a much more efficient approach to the development process.
How Does Dedicated Team Work
When you hire a dedicated team, you get a full-fledged unit of specialists who works solely on your development project. The administrative expenses and concerns aren’t your responsibility, as the team is remote and employed by the vendor. You just get to cooperate with the specialists and get the most value from their experience without the need to cover office spaces, equipment, healthcare, etc.
Usually, vendors charge you monthly for the work of the dedicated team, and the fee depends on the number of specialists included in the team and their level of involvement (full-time or part-time). Basically, you pay a combined fee for every employee by their hourly rate.
The process of launching with a dedicated team looks the next way:
Pros and Cons of Dedicated Team Model
So, let’s see how this model might solve problems you encounter and what difficulties it might bring to the table as well.
Advantages of Dedicated Team
Disadvantages of Dedicated Team
Staff Augmentation or Dedicated Team: What to Choose for Your Project
So, now you know the specifics and differences between staff augmentation and a dedicated team. However, it is not all: we will also explain how to understand what model would be the most suitable for your case.
Altamira as Your Software Development Partner
Altamira has wide experience providing software development services to businesses in different industries on different cooperation models. For a decade, we worked hard to deliver a quality product to the clients who put their trust in us. These experiences allowed us to sharpen our delivery approach to maximize the value for you.
Cooperating with us, you get:
Our Staff Augmentation Services
Use our staff augmentation services to enhance the capacities of your existing team. Our specialists are ready to join your crew through team augmentation and contribute their expertise to your project.
Augment your team with:
Our Dedicated Team Services
Need a synchronized and strong team to deliver a software solution to your team? Choose our dedicated team for these purposes. Our approach and capacities allow providing you with quick time-to-market without sacrificing the essential quality of the product.
We specialize in the next industries:
In Conclusion
It is impossible to say what is best in general: staff augmentation and project outsourcing with a dedicated team. However, it is possible to choose the model that suits your case the most. If you have any doubts regarding this question, feel free to contact us: we would gladly help you navigate the world of different cooperation models and select the one for you.
