The effects of technical outsourcing on businesses
In today’s competitive startup market, achieving excellence in product development and service delivery is crucial. However, many businesses face challenges when trying to recruit highly qualified professionals with the necessary technical skills due to limited resources and time — Team augmentation helps address this gap.
Team Augmentation involves partnering with external professionals from a third-party organization to complement an existing in-house team. This collaborative outsourcing method allows businesses to leverage the skills of experts and effectively execute projects. By adopting team augmentation services, businesses can streamline processes, reduce expenses related to hiring, and quickly fill skill gaps without the administrative burden of traditional hiring.
The flexibility of team augmentation also provides excellent scalability, allowing organizations to adjust their team size according to project requirements, leading to efficient resource utilization. Ultimately, team augmentation can help startups expedite their time-to-market goals and gain a competitive edge in the market.
When putting together an augmented team for a project, there are two main models to consider:
1. Dedicated team model
2. Extended team model
DEDICATED TEAM MODEL
A dedicated team model allows an external team to do all the same duties as an internal development team, except that they are a third-party service provider.
When should you hire a dedicated team?
The dedicated team is the best option if your idea requires a discovery stage and doesn’t yet have a product-market fit. These include:
Startups in their early stages
If you’re a startup in its early stages that expects to grow, consider hiring a dedicated team. It will allow you to build a team quickly, save money on hiring processes, and develop the product faster. While your in-house team focuses on business-related duties, the augmented team handles the extra work.
Long-term projects
The dedicated team model is appropriate for long-term projects. Startups that have progressed beyond the pre-seed stage and need to expand quickly might benefit from assembling a specialized development team.
Projects with ambiguous specifications
The dedicated team model is the way to go when your concept lacks product-market fit and requires a discovery phase. Because the discovery stage is the foundation for the project’s whole development mechanism, it may take months of testing and interviews. The dedicated team approach gives you the time and resources to focus on the discovery stage without worrying about going over budget.
EXTENDED TEAM MODEL
The extended team model is the practice of hiring just the positions you require from an outsourcing provider for the project. This individual or people would work alongside your team, either remotely or onsite. In other words, the extended team model helps supplement your current staff.
When should you hire an extended team?
An extended team acts as an add-on where the team members are integrated into the business and participate in various projects or work packages, or they might work together as a separate team on a single project with a set deadline.
Short and medium-term projects.
You don’t need to recruit separate development teams for small projects with well-defined needs. Expertise can be outsourced during the project when the scope of work is clearly defined.
Time and budget constraints
When resources are limited, an extended team model is an ideal option. A project manager might decide that a mobile application project has a two-month completion date, and adding a developer to the team would allow them to complete it more quickly and still meet the deadline.
Examining the benefits and possible drawbacks of team augmentation can help businesses make informed decisions about incorporating this approach into their larger strategy.
Pros
- Cost Savings: By leveraging augmented teams, businesses can avoid expenses associated with office rent, equipment purchases, and other overhead costs. By implementing team augmentation, organizations can optimize their budget allocation while accessing top-notch talent.
- Personnel Flexibility: Traditional recruitment processes involve significant time, expense, and complexity. However, with team augmentation, businesses can recruit professionals as needed and scale their teams up or down effectively. The flexibility provided by team augmentation ensures that the right resources are available at the right time, optimizing efficiency and productivity.
- Streamlined Objectives and Enhanced Business Organization: By defining the specific skills required to improve a product or execute a project, businesses can leverage team augmentation to streamline their objectives and enhance overall organizational efficiency. As a result, project execution is sped up, and deadlines can be met efficiently, contributing to improved productivity and yielding positive results.
Cons
- Need for Synergy: Building synergy within an augmented team can present challenges, especially when newcomers join an existing internal team, especially if remote work arrangements are involved. Proactive measures such as regular team meetings, fostering a collaborative work environment, and promoting open communication can help accelerate the synergy, leading to a more efficient workflow.
- Adequate Training and Onboarding: It’s crucial to provide your augmented team with onboarding and training when you hire them. While these professionals may possess the required technical skills, they may still need to familiarize themselves with tools, procedures, and the work culture specific to your organization. Allocating sufficient resources and time for training and onboarding will enable them to seamlessly integrate into the team and contribute effectively to project success.
- Lack of Motivation: Motivating team members in an augmented team setting can be a potential challenge. While employees within the organization may have specific incentives and benefits from the employer, such as salary increases, social benefits, or bonus payments, augmented team members may not enjoy the same privileges. This discrepancy can impact their motivation and engagement. To address this, organizations should focus on creating an inclusive environment, recognizing and appreciating the contributions of augmented team members, and exploring alternative ways to provide motivation and incentives.
How can you get started?
You will need to spend a bit of time researching your needs, goals, and expectations for the project as a business. Some important questions to consider include;
- Do I need to scale up projects quickly?
- Does the project require expertise in specific areas?
- Can I afford to augment the present team?
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In summary, team augmentation has several irrefutable benefits, such as flexibility, cost-effectiveness, close collaboration, and improved project control. It enables businesses to access a talent pool of remote employees while getting rid of cumbersome paperwork and administrative procedures. Businesses can remain ahead of the competition, improve project outcomes, and accomplish their corporate objectives by proactively utilizing team augmentation.
