Staff Augmentation vs Outsourcing: What's Best for Business? Skip to main content


7th Nov, 2023
3 min read

Staff Augmentation Vs It Project Outsourcing - Which Is Better?

Staff Augmentation Vs It Project Outsourcing - Which Is Better? - Banner

Information Technology is the future when the business world is modernizing all their operations. However, having experienced software developers on board all the time is not possible. Here is when Staff Augmentation and IT Project Outsourcing come to the rescue!

With many benefits like time and cost optimization, companies focus on their core jobs while transferring their IT jobs to outsourcing providers. While both models equip businesses with a talent pool, there is a difference.

This blog discusses Staff Augmentation vs. IT project Outsourcing and how you can choose between them. However, before jumping into the differences between the two, let us have their brief!

IT Staff Augmentation

Staff augmentation is the temporary employment of IT professionals for a particular project in an organization. Workers employed in this manner are part of the company till the completion of their contract. It differs from freelancers, consultants, and other contractors that never form part of the company.

IT Project Outsourcing

IT project/ IT outsourcing means hiring a third-party vendor that takes over the complete IT project of the business and gets it done. The third-party vendor provides a full set of information technology services according to specified project requirements and agreements.

Staff Augmentation vs. Project Outsourcing

After understanding the general definition and concept of Staff augmentation and IT outsourcing, below is a specific comparison between the two:

  • Overhead Costs

Hiring skilled software developers in-house brings expensive costs for the company. Overall, both solutions eliminate the cost of the internal processes of hiring and training full-time employees. However, Staff augmentation usually costs you less in comparison to IT outsourcing.

Staff augmentation involves hiring specific jobs that a company needs for a particular project at that time. It means the cost you bear for the outsourced team will be only for that period. They are usually off the client's payroll.

Meanwhile, IT outsourcing costs you more than Staff Augmentation because of comprehensive outsourcing of IT functions and long-term contracts- from ideation to product completion.

  • Main Duties

While both technical services offer a quick solution for personnel in the IT industry, they distinguish between the main duties. Staff augmentation means hiring skilled/ expert IT people within a client's project in-house team for a given contractual period. In comparison, IT outsourcing means hiring a different company that offers IT services for a particular project. They oversee the entire software development process and don't interfere with your company's core.

  • Working Location

Working location is the main difference when discussing staff augmentation vs. outsourcing. The purpose of Staff augmentation is to assemble a team temporarily. It is filling in the vacancies for a given task. Hired people work within the office space with the existing team.

On the contrary, it is regular for the IT outsourcing team to be composed of remote developers. These developers may or may not be off-shore. They can also work as freelancers. It allows you to tap into a global talent pool for high-quality services at budget-friendly rates. Hence, they are an attractive option for you and other businesses looking for IT development services.

  • Project Management

Because the purpose of each type of hiring differs, the leader of each kind of model is different. When it comes to management of staff augmentation resources, it is the responsibility of your company's team lead. Since these human resources are hired to work directly with your project team, they take direction from the team lead.

In comparison, IT outsourcing is self-sufficient and has more control over project management than Staff augmentation. IT outsourcing offers various IT functions for the project, from application development and infrastructure management to cybersecurity. The team lead (often located at the outsourcing provider's headquarters) coordinates with your company's project team lead.

  • Onboarding

Staff augmentation can be done swiftly without requiring lengthy hiring processes as they are only for the contractual period. In contrast, outsourcing consumes more time onboarding because of the complexity of the dedicated team investment of time and resources in the selection of an appropriate service provider. However, when onboarded, they take responsibility for IT functions within the client's organization.

Staff Augmentation vs. IT Project Outsourcing - Which Is Better?

By now, you should have understood the differences between Staff augmentation and IT outsourcing. Choose between the two depending on the specific needs of your organization. Staff augmentation works best if you are hiring for short-term projects that require a few skilled professionals to complement the existing team.

In comparison, if more resources are needed, you must go for IT outsourcing. It works best for longer-term projects that require a more comprehensive IT solution team. You can also contact Innoraft for web development services.


No matter what outsourcing service you are opting for, carefully choose your service provider. Avoid wasting time and money on the wrong outsourcing partner. We recommend you check their portfolio and past clients they have worked with in the past to get a better idea. Software development outsourcing benefits your business; you only need to find a suitable partner.