More and more companies are looking for IT outsourcing solutions. Finding and hiring internal IT staff can be time consuming, difficult, and expensive, not to mention the downsides if you have a fast-growing or time-limited project.
The two main models of IT outsourcing are augmenting IT staff and managing IT services. Both models are solid alternatives to full-time internal hiring, but the most effective model depends on the type and scale of your project.
Staff augmentation is used to outsource specific tasks and functions (inputs). The managed services model outsources the entire problem and solution to an external (outbound) provider. The main benefit of increasing staff is the ability to scale specific functions quickly, while managed services are best for long-term management of processes such as infrastructure and security.
What is the increase in IT staff?
IT staffing services can help your business grow or shrink as needed today. Rather than spending time and energy hiring permanent IT staff, staff augmentation allows you to temporarily work with qualified specialists as projects progress.
The Staff Augmentation IT Outsourcing Model gives you access to a pool of the best tech talent in the industry as soon as the need arises.
While some argue that increasing staff is better for small and medium-sized businesses, Rootstrap has worked with tech giants such as Spotify, Google, and Disney to successfully scale its processes and products. Startups and established businesses can increase productivity and save money with increased IT staff.
Here are some of the pros and cons of increasing your IT staff:
Benefits of increasing IT staff
Maintain control of the project
With the increase in IT staff, you retain the autonomy of the project. This way, you can guarantee the completion of the project to your specifications.
The outsourcing company will simply determine your needs and present qualified candidates for the position. Once you agree with your outsourced team members, they will adapt to your business and follow your lead to achieve your project parameters.
With Rootstrap IT staffing services, our support doesn't stop when you sign an agreement with the candidates we introduce. We help them transition into their business and monitor the relationship to ensure success.
Get the benefits you need from the project
Rather than recruiting new employees for a project only to let them go when it's done, Bootstrap's workforce augmentation services allow you to scale your staff to meet today's demands.
We offer specialized talent for every IT niche to help you complete any project. Whether you want a fully designed application, desperately need to fix a software glitch, or just need an extra hand with coding, we can find the right team members for you.
Increase production and reduce costs
Hiring new employees can dramatically increase overhead costs, including the cost of additional office space, hardware, software, and more expenses associated with on-site staffing.
Increased IT staff allows your business to remotely work with talents from around the world to achieve the same or even better results at reduced cost.
Since IT functions can be outsourced internationally to lower cost-of-living regions, you can save money on development without compromising the quality of your products.
Additionally, shifting some of the workload from your internal staff to outsourced teammates can increase productivity, as your employees will spend less time multitasking and more time doing what they do best.
While processes vary from company to company, Rootstrap has created a straightforward approach to IT outsourcing. We provide access to highly qualified developers on a contractual basis.
Rootstrap acts as the official employer, handling HR, tax, payroll and employee benefits matters so you don't have to. We also navigate the technical aspects of IT outsourcing abroad, ensuring competitive prices without cutting costs.
Additionally, all of our new hires are bound by the terms of our employee handbook, which covers legal issues and describes codes of conduct. Our IT staff will strive to adapt to the policies that govern your business.
Disadvantages of increasing IT staff
Best for short-term IT support
Increasing IT staff is a convenient solution for companies that need access to a flexible IT support source as projects come and go.
If your business needs consistent heavy-duty IT work, it may be more profitable for you to hire an in-house team of developers or opt for managed IT services.
Requires management resources
Outsourced IT staff will be under your direction. The need for management only counts as a disadvantage if you don't have the resources and vision to oversee your IT project.
What are managed services?
Managed IT services are another popular outsourcing model. With managed IT services, your company outsources IT processes to another company.
The IT company agrees to operate in accordance with specific parameters and specifications determined by the parent company. However, the managed IT services company assumes control of the IT staff, management and execution of the project.
When drafting a contract, the parent company and the IT company will agree on the deliverables or desired result.
Managed IT services are suitable for companies that need a specific technical result but do not have the resources to participate heavily in the process. This outsourcing model is also suitable for companies with long-term labor-intensive development needs.
Benefits of managed services
Stay focused on operations
Since Managed Staff Augmentation departments provide their own project management processes, the parent company can step back and focus on its services. The IT company will handle the technical and development functions, while its staff will focus on other operations.
Save time managing IT
If your company hires IT staff internally, you will need to spend time managing IT projects. To properly oversee IT functions and keep everything on schedule, a project manager will likely need a working knowledge of the project itself.
For companies that lack technical expertise and management resources, managed IT services can be a convenient solution, saving time and money in the long run.
Disadvantages of managed services
Since managed IT services cover both IT functions and project management, the cost of transferring your business processes to an IT company can be higher than outsourcing through staffing.
Loss of autonomy
If your company prefers to maintain full control of internal processes, handing over your product development to a managed IT services company may not be the best fit for you.
Companies that want to internalize project management and supervise outsourced staff have an interest in opting for IT staffing services.