The world of software development has transformed significantly over the years. From monolithic in-house teams to globally dispersed professionals, how and where software development happens has become a strategic choice for businesses. Outside building an in-house team, two models stand out: Outsourced Software Development and Staff Augmentation. Although they both aim to augment your capabilities, they follow different paths. Understanding the differences between these models will help you decide which is right for your business needs.

Outsourced Software Development

Outsourced software development is a model in which a third-party agency takes responsibility for delivering a project or a defined set of services. The agency employs its own developers, project managers, and other necessary roles to complete the project. Once the agreement is in place, the client steps back, and the outsourced team takes control.

The primary benefits of this approach are convenience and specialization. If you need to develop a mobile app and lack the necessary expertise in-house, hiring a specialized mobile app development agency can be an attractive option. The agency manages the project from beginning to end, allowing your in-house team to focus on core operations.

However, outsourced software development can have its drawbacks. A significant concern is the lack of control over the project's day-to-day progress and the potential for misunderstandings due to communication barriers. This model may also result in less flexibility, as the agency may have its own preferred methods and protocols, which might not align with your specific needs.

Staff Augmentation

Staff augmentation is a scalable approach to extend your team's capabilities by bringing in skilled professionals from outside. The hired talent works as an integrated part of your existing team, under your management, but is officially employed by a staffing agency.

The benefits of staff augmentation are numerous. It allows you to scale your team with nearshore team members, thus offering significant cost savings. It also allows for seamless integration between your in-house team and augmented staff, fostering collaboration and communication.

Furthermore, staff augmentation enables you to retain full control over your projects. The augmented staff becomes a part of your team, adhering to your methodologies, standards, and work ethics. 

But as with any model, staff augmentation also has potential drawbacks. Managing a larger team can be challenging, especially if your in-house team lacks the necessary managerial resources. You also need to ensure that the augmented staff feels connected and engaged, which can be a challenge with remote teams.

Conclusion

Whether you should opt for outsourced software development or staff augmentation depends on your specific needs and circumstances. If you seek a hands-off approach and need specialized skills for a specific project, outsourced software development could be the right choice. But if you want to maintain control over your projects and need to scale your team flexibly, staff augmentation may be the better approach.

At Zipdev, we specialize in staff augmentation, placing top-notch Latin America-based professionals with our clients to work remotely. Our mission is to help our clients expand their teams with quality professionals who uphold our core values of quality, communication, accountability, teamwork, problem-solving, and continuous learning. If you're considering staff augmentation or outsourcing for your business, reach out to us. We can guide you through the process and help you make the right choice for your organization.