If you’re planning an upcoming IT project, it’s likely that you’re also considering how you will address a skills gap. Staff augmentation through outsourcing may be the answer. How do you decide whether insourcing or outsourcing will better fit your needs? Here are the factors to consider:
Any time you are initiating a new project, cost is the first priority because everything depends on funding. When you choose to hire in-house employees, you will have to pay for gross salary, benefits, and taxes. You should also consider the cost of office space and devices to equip them to do their job. If it’s a new employee, you also have to factor in hiring and onboarding costs.
Outsourcing may allow you to reduce the overall cost of the project. Your provider will work with you to determine the fixed number of hours they will include in your contract. But that rate will cover everything: your provider will be responsible for the equipment and workspace necessary to fulfill the contract.
The determining factor for outsourcing versus in-house will likely be the length of time on your project. A project that takes years to build and maintain may be better with an in-house team, while short-term projects are more cost-efficient with outsourcing.
If you’re in a hurry to get your project into the market as soon as possible, this may be an indication that outsourcing would be a good solution. It takes time to hire employees, and even more time if your goal is creating a cohesive, role-based team. It may delay your project for months.
In addition, hiring the right talent in the current labor environment means competitive compensation, which may impose limits on your project budget. But if your project will take place over many months or even years, it will be more efficient in the long run to hire in-house developers.
When you outsource your project to a managed services provider, you get access to an expert team. You save time by finding an existing team that fits your timeline, budget, and technical requirements. If you are pursuing a shorter project, outsourcing is probably your better option.
This particular factor is harder to quantify than either cost or time, but it is also a critical measure in determining whether to outsource for staff augmentation. If you hire in-house, the quality is dependent on the recruitment and hiring of good resources, but it also gives you more control over your team.
Outsourcing allows you to engage in staff augmentation that pulls in resources from across the world with a wide range of abilities. This gives you a better likelihood of identifying a niche expert if your project requires one. In addition, an outsourced team is more capable of extending when a specific skill is required, making your project more efficient.
When it’s time to address staff augmentation, Proper Connections can help you assess your project and determine whether outsourcing is the best approach. Contact us for an initial discussion of your project. We look forward to hearing what your plans entail.