Dec 17, 2013

Resource augmentation vs. Project based outsourcing

IT industry is growing at a very rapid pace. More and more people are getting employed on regular basis by the IT companies. However, not all the companies have the ability to give sustainability as well as security to their employees and they scale the size of their company as per the requirement of the project.

It becomes very difficult to keep selecting and hiring a person and then let go of him after the project is completed. Hence, the trend of resource augmentation and outsourcing is becoming very popular. So what is Resource augmentation and project based outsourcing? Let’s have a look-

Resource Augmentation-

In resource augmentation, the resource becomes dedicated extension of your development team. You can talk to them directly without any channel. You communicate with your dedicated resources as often as you like through phone, chat, e-mail etc. The enterprise can also demand for the regular status update by the end of the day. This resource will only work for your project during the length of the contract. Some of the outlines of staff augmentation are-

  • Communicate directly with your resource for as long as you like.
  • The resource will only be dedicated to you and will not work with any other client during the length of your contract.
  • You can hire this resource for the longer duration as well. You can even extend the contract as per your need.
  • You can even ask him to guide your in-house team and use them to their maximum core expertise.
  • The resource will make sure that your company is delivering the project which is not over budget and within the times lines.

Project Based Outsourcing-

Unlike staff augmentation, in project based outsourcing the resource can work on many other projects along with your project. There is no exclusive clause which is being implemented on the given resource. In this type of agreement, you have to specify the terms and condition as well as your requirement in advance. After you laid down your requirements, you and project manager will agree on a delivery schedule. You will have a weekly meeting with the resource where you may ask any question, give your feedback and take the update on the scheduling of the project. The outlines of project based outsourcing are-

  • You can talk directly with the resource generally once a week.
  • All the software requirement must be defined before the beginning of the project and the delivery must be pre-fixed.
  • Resource also works for other projects as well.
  • You can hire these resources for any length of time.

After looking at the above said points, we can certainly say that both resource augmentation and project based outsourcing have their own advantages. You can pick the option which you like and suits your requirement.

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