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Dedicated Team vs Staff Augmentation

Business development
Digital transformation
Mykhailo Bohdan Content Writer
| 9 min read
dedicated TEam
dedicated TEam

A dedicated team is among the most demanded IT outsourcing models. It allows you to enjoy the benefits of outsourcing while granting the features and feel of an in-house team. Sometimes, though, the dedicated team is too much of a commitment for a company that does not require a complete software development crew. In this case, staff augmentation comes into play.

Dedicated team vs staff augmentation has some significant distinctions that you should consider before deciding on the preferred software outsourcing model.

A Word About IT Outsourcing

The dedicated team and staff augmentation fit snugly under the umbrella of software development outsourcing. Therefore, both models share the features granted to them by the industry, including

  • Lower costs compared to in-house software development. The difference in economic conditions between countries as well as flexible legislation of IT-focused countries makes outsourcing extremely cost-efficient.
  • A big number of available developers. Countries with a powerful IT outsourcing industry have some of the biggest pools of experienced developers. For instance, Ukraine has over 180.000 IT specialists, which is an impressive 1.4 % of its working-age population.
  • The experience forged by competition. The dense competition in the industry means that IT specialists need to constantly improve to maintain their relevance.

Such unique conditions coupled with efficient recruitment and a strong employer brand helped Forbytes to gather a team with over 90% of middle to senior-level developers.

 pros and cons of hiring remote developers

Considering the advantages of software outsourcing, the dedicated team and staff augmentation models offer an unrivaled value for the price.

What Is the Dedicated Team Outsourcing Model?

A dedicated team is an IT outsourcing model based on which a company provides you with a remote software development team fully dedicated to your product and business goals. The outsourced developers are hand-picked according to your requirements, and can be managed from your side.

A dedicated team addresses a tangible limitation of software outsourcing — the lack of personal leadership and feeling of unity.

With other IT outsourcing models, you still get a product for a great price, but you don’t get to be a leader of the team that brings your vision to life. You don’t have much say in who works on the project and how it should be managed. A dedicated team negates this issue by providing you with the ability to be the leader of your team as well as participate in the hiring process.

The sense of unity that a dedicated team grants is particularly important for startups and innovative products where creativity is a key success factor.

Thus, the only reminder that your team is outsourced — the team members aren’t in your office. Nonetheless, with modern communication and work-monitoring tools, this ‘remoteness’ becomes barely noticeable. Especially now, when half of the world works from home and some companies are switching to remote completely because of the pandemic and the massive paradigm shift associated with it.

pandemic driving digital transformation

 

Furthermore, there is always an option to visit the team on-site. You kill two birds with one stone: get to know your dedicated developers better, and receive a great reason to visit another country.

From our personal experience, one of the many benefits of having an office in Lviv, Ukraine is that our city has a lot to offer besides business opportunities. The clients who visit Forbytes get to enjoy our city’s many attractions.

Also, some of your dedicated team members can visit you in your country, which is also a prevalent practice. As a result, you get to strengthen the partnership, improve communication, and enhance the bond between you and the team that may last for years to come.

As you can see, the outsourcing of dedicated developers is a world without borders.

Benefits and Features of Dedicated Team Services

If we are to describe the benefits of a dedicated team outsourcing model in one sentence, it would look like this:

You get an experienced personal software development team without much effort, while recruitment, taxes, team accommodation, and compensation are handled by the company-provider.

If we are to go into detail, the benefits of the dedicated team are

  • A complete team. Your team consists of each professional required to develop your digital product from scratch or improve an existing project.
  • Dedication. Your team is fully dedicated to your project and cause; no distractions.
  • Management control. You either manage your team yourself, appoint a PM on your side, or leave it to the dedicated team provider.
  • Hiring control. You can take part in interviewing potential team members.
  • Scalability. Your dedicated team composition is flexible and you can change it based on your requirements.
  • Complete ownership. Anything that your dedicated team creates belongs to you.
  • No additional expenses and organizational troubles such as accounting costs, legal fees, HR costs, office costs, and employee benefits.

Usually, the dedicated team consists of the following IT specialists:

  • Software engineers: front end, back end, full-stack, mobile developers, system architects — you name it
  • Quality assurance specialists
  • UI/UX designers
  • DevOps engineers
  • Business analysts
  • Project manager if you want somebody to handle the management for you

Overall, the dedicated team is a very flexible IT outsourcing model, which can be tailored to your requirements and business strategy.

You can also wonder, is dedicated team good for long-lasting partnerships? The answer is yes.

For example, the average duration of our partnership is 52 months. If there is a trust and transparency between parties, a dedicated team is perfect IT outsourcing model for companies that seek a long-term partner.

Head of production talks about uses of modern technology in business

What Is Staff Augmentation?

Staff augmentation is an IT outsourcing model according to which a software development company provides its talents to fill in the tech expertise gap in your current team. The outsourced developers work remotely as a part of your tech crew. Staff augmentation is also known as team extension.

Usually, IT staff augmentation is performed under the time & materials business model, meaning that the cost of staff augmentation changes depending on the scope of the project and the workload. Another possibility is a fixed price business model that requires a fixed budget and a well-defined project scope.

Remember though that when choosing staff augmentation over traditional in-house hiring, you still need to onboard and accommodate new tech talents into your in-house team. The dedicated team does not have such an issue.

Benefits and Features of Staff Augmentation Services

In plenty of cases, IT staff augmentation shines compared to traditional hiring, especially when the deadlines are tight.

Staff augmentation’s benefits include

  • Cost-efficiency. You are not burdened with the recruitment process, don’t have to organize a working place, and provide benefits to your new software professionals.
  • Flexibility. The staff augmentation model is perfect for quickly responding to urgent business objectives.
  • Effortless scalability. With staff augmentation, hiring new employees or parting your way with them is much easier compared to the traditional approach as all the bureaucratic hurdles are handled for you.
  • Experienced tech specialists. Software companies that provide staff augmentation services either have available software experts with years of experience or can quickly hire them because of the local market saturation and a well-polished recruitment process.

Usually, staff augmentation services are used to quickly add the following IT specialists to your team:

  • Software developers
  • QA Specialists
  • UI/UX Designers
  • DevOps Engineers

Dedicated Team vs Staff Augmentation: What to Choose?

Though a dedicated team and staff augmentation are closely related, these IT outsourcing models aren’t interchangeable.

On one hand, if your company doesn’t have tech expertise at all, or needs a team for a new project, a dedicated software development team is the right choice. The same goes for sub-projects within bigger ones. In these cases, staff augmentation simply won’t cut it.

On the other hand, staff augmentation is great for quickly getting missing talents for an on-going project. As your project scope changes or people leave, the need for new software development professionals can become urgent. Finding the right person with relevant experience can take a lot of time and money. Software development companies are likely to already have available experts or an efficient recruiting department and process to quickly deliver the lacking talent. In this case, the dedicated team model is overkill.

Simply put, the world of IT outsourcing is full of opportunities for manifesting your ideas. If mentioned cooperation models don’t cover all your needs, you can always contact a software development company and discuss your requirements and possible alternatives.

If you, by chance, need a dedicated team, staff augmentation, or other software development services feel free to contact us. With years of experience building digital products and tech teams for international companies, we can find the right people to make your vision a reality.

 

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