Staff Augmentation vs. Outsourcing a Dedicated Team: What’s Better?

According to Statista, over the last five years, more than half of the worldwide firms have faced a skills deficit that has regularly hampered their progress. As of 2022, about 70% of all tech businesses still experienced a significant tech talent shortage, meaning that the trend is not going anywhere. Luckily, by partnering with a trusted software development partner, you can address the skill shortage problem. Staff augmentation and dedicated team models are great for filling in your organization’s existing tech skill gaps. And, you won’t have to spend extra on searching, screening, interviewing, and hiring engineers. Keep reading to learn what model best fits your needs in 2023. 

Staff Augmentation Definition

Staff augmentation is a hiring approach in which an organization recruits temporary employees to supplement its existing personnel. Additional personnel, often known as contract workers or temporary employees, operate directly under the organization’s supervision and management but are not considered permanent employees. Staff augmentation is usually used when an organization wants extra resources to finish a project or task or lacks specialized skills or knowledge in-house. It can be an efficient approach to expand a team without committing to employing permanent workers. Staff augmentation can also assist a company in managing its workload during peak seasons or when there are unexpected staffing shortages due to illness, resignation, or other circumstances. Staff augmentation is commonly employed in industries such as information technology, software development, engineering, construction, healthcare, and finance, where specific experience and abilities are required for a project or task. The staff augmentation approach enables businesses to access a pool of skilled specialists without incurring the price and time needed to recruit and train permanent personnel. That being said, here is a short list of staff augmentation benefits that will help you decide if the model is the right fit for you: 

  • Scalability. Staff augmentation enables businesses to increase their personnel to fulfill short-term or seasonal demands without committing to long-term hires.
  • Cost-effectiveness. Employing temporary employees via staff augmentation is more cost-effective than hiring permanent employees since it eliminates the overhead and costs associated with recruiting and training new hires.
  • Expertise and specialized talents. The model also enables businesses to access a pool of technical talents and knowledge that might otherwise be unavailable in-house.
  • Flexibility. It allows firms to recruit temporary employees for as long as they need them, giving them flexibility in terms of engagement length.
  • Reduced time-to-hire. Staff augmentation can assist firms in shortening the time it takes to hire new employees because temporary workers are easily accessible and can begin work immediately.
  • Reduced risk. You can avoid the risk of recruiting permanent employees who are not a suitable match for the firm or lack the requisite skills and knowledge.

 Read more: Expert Tips on How to Hire Outsourcing Development Teams 

What’s a Dedicated Team?

A dedicated development team is a group of specialists who work solely on one or more projects for a company. The team is often made up of developers, designers, project managers, quality assurance specialists, and other professionals with the essential abilities and expertise to execute the project successfully. The dedicated development team approach is utilized in the software development and IT industries, where specific skills and knowledge are necessary to accomplish complicated projects. Unlike staff augmentation, which involves adding temporary employees to an existing team, the dedicated development team is a separate entity that works only on the client’s project. The dedicated development team model involves an external service provider, typically a software development business, who is in charge of recruiting, hiring, training, and managing the team. The client company has minimal influence over the team and its day-to-day activities but is involved in project goals, requirements definition, and feedback throughout the development process. Organizations benefit from the dedicated development team approach in various ways, including access to specialized talents and knowledge, higher productivity, and reduced time-to-market. It is also a cost-effective choice for firms that need continuous development work but do not want to invest in employing and managing a full-time, in-house team. Based on the things mentioned above, here are the benefits of the dedicated development team model: 

  • Expertise and specialized talents. The dedicated development team approach enables enterprises to gain access to a team of professionals with technical skills and expertise in areas that may not be available in-house.
  • Cost-effectiveness. The model is a cost-effective solution for enterprises that need continuous development but want to avoid engaging in hiring and managing a full-time in-house staff.
  • Enhanced productivity. If you want to focus on core competencies while an external service provider supervises the team and guarantees that the project is finished on time and within budget, this model is the right fit for you.
  • Flexibility. If you’re not sure about how long it will take for the team to complete a project, it allows for flexibility in terms of engagement length, allowing companies to engage the team for as long as they require them.
  • Reduced risk. The dedicated development team model can help eliminate the risk of recruiting permanent employees who may not be a suitable match for the firm or lack the requisite skills and knowledge.
  • Improved quality. This model encourages tight collaboration between the customer and the service provider, leading to higher-quality deliverables and better project outcomes.

 Related: Main Benefits of Hiring an Offshore Software Development Company 

Staff Augmentation vs. Outsourcing a Dedicated Team: Differences

Staff augmentation and team outsourcing are two common tactics businesses use to handle staffing demands. However, they differ in various aspects and may be more suited to different contexts. The distinctive feature of the staff augmentation model is that the organization retains control of the project and the team in this approach, and the augmented staff members are typically entirely incorporated into the company’s culture and operations. Staff augmentation is employed when a company wants to expand its in-house team quickly or when it lacks certain capabilities for a specific project or activity. You wouldn’t have to manage anything if you choose to outsource a dedicated team. The service provider is in charge of hiring, training, and managing the staff in this model, whereas the client company has less authority and oversight. When a company needs more resources to develop and manage a dedicated team in-house or when particular talents are required that are not available in-house, it is common to outsource a dedicated team. The best strategy relies entirely on the organization’s unique needs and circumstances. Staff augmentation is usually favored when a business has unique needs and requires fast access to experts who can join an existing team. Outsourcing a dedicated team may be more appropriate when an organization wants to scale up for a project or lacks the capacity to maintain a dedicated team. Finally, both staff augmentation and outsourcing a dedicated team can be viable solutions for handling staffing demands. The organization’s specific needs is what will determine the choice between the two. 


The tech talent shortage is no joke—virtually all organizations struggle to find teams with appropriate skill sets. Hiring in-house employees has become time-consuming and expensive, with no significant benefits. This is why staff augmentation and dedicated development team models will interest those struggling to find local tech experts. So, if you like the idea of building your perfect team in under 72 hours, contact Nearshore Friends and start working with goal-oriented experts today. 

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