Staff augmentation vs outsourcing: which one you actually need
Staff augmentation adds people to your team who work under your direction. Outsourcing hands a function to a provider who manages it and owns the outcome. The right one depends on whether you want to run the work or hand it over.
Why this comparison is straight
We sell both. Seats and managed teams are our staff augmentation service; process handover is our operations service. Neither answer below is steering you toward the one we'd rather sell.
Side by side
Outsourcing, sometimes called business process outsourcing or BPO, is the model our operations service runs.
| Staff augmentation | Outsourcing | |
|---|---|---|
| Who employs the people | The provider | The provider |
| Who manages the daily work | You (or the provider's managers, in a managed team) | The provider |
| Who owns the outcome | You | The provider, against agreed service levels |
| What you set up | Access to your tools, and your direction | A scope, service levels and a handover |
| How you scale | Add or remove people | Change the scope or the volumes |
| Where the know-how sits | Inside your team | With the provider |
When augmentation fits
- You have someone ready to direct the work, or you want a managed team working inside your process.
- The process is yours and you want to keep it that way.
- You need capacity for a role, not a redesigned operation.
- You want to meet the people doing the work.
Start here: staff augmentation services
When outsourcing fits
- The process is well defined and you're happy for someone else to own it.
- You'd rather buy a result against service levels than manage people.
- Nobody on your side has the time or the appetite to run the function.
Sometimes outsourcing is simply the better choice. If this list describes you, go to our operations service.
Staff augmentation vs managed services
"Managed services" usually means a provider takes responsibility for a service, often IT infrastructure or support, against a service-level agreement. You buy the service, not the people. Staff augmentation gives you people working in your process. A managed team sits between the two: the people are managed for you, but they work to your guidelines, inside your process.
Staff augmentation vs consulting
Consultants advise, or deliver a defined piece of work, and then they leave. Augmented staff do ongoing work as part of your team, under your direction, for as long as you need them. If you need a recommendation, hire a consultant. If you need the work done week after week, add people.
Questions buyers ask
Is staff augmentation cheaper than outsourcing?
Neither wins every time. They're priced differently: augmentation is a monthly rate per person, outsourcing is usually priced on scope, volume or service levels. Which costs less depends on the work and how much managing you want to do yourself.
Can you switch from one model to the other?
Yes. Seats can grow into a managed team, and a function that's settled into a stable process can move to outsourcing later. We run all three, so switching doesn't mean switching providers.
What's the difference between staff augmentation and consulting?
Consultants advise or deliver a defined project. Augmented staff do ongoing work inside your team.
When is outsourcing the better choice?
When the process is well defined, you want a result rather than people to manage, and you're comfortable with a provider owning it.
Who owns the deliverables in each model?
With staff augmentation, everything the person produces for you is yours, and the contract says so. With outsourcing, ownership is set in the scope of the engagement.