Insights
April 2022

Find Out Which Tech Outsourcing Model Is The Right One For You

Martin Sandhu
Martin Sandhu
Founder of nuom

Whether you are an early-stage startup or a venture-backed company, you might consider outsourcing some of the work to speed up your product development.

But between team augmentation and having a dedicated team, how do you know which outsourcing model is the right fit for you? Let’s find out.

Outsourcing product development has been around for ages, but it only grew in popularity over the past few years.

Its flexibility has proven fundamental in driving innovation and rapid growth for companies of all shapes and sizes. 

Although there are multiple variations of the cooperation model, the two main types are ‘Team augmentation’ and a ‘Dedicated team’.

Team augmentation

This outsourcing model allows you to borrow first-rate talent from a selected tech partner to speed up the launch of your product. 

Your partner’s experts become an integrated part of your in-house team for a set amount of time. 

The best part is that you still get to remain in control of the project without worrying about recruitment, training, or staff retention. 

However, for this outsourcing model to work, you’d need to have an in-house development team already set in place.

Pros

  • Project flexibility;
  • Cost-effectiveness;
  • Helps you secure the best talent & expertise;
  • Allows you to retain full control over the project;

Cons

  • Need to have an in-house team already in place;
  • Onboarding and knowledge transfer;
  • Requires detailed communication plan;

Dedicated team

Although team augmentation sounds like the perfect fit for most cases, it’s not a universal solution.

Especially if you are just starting out and you are lacking the resources to build your in-house team. 

The alternative approach is to reach out to a development house to bring your idea to life. Your selected tech partner will provide you with qualified professionals that will work around the clock fully dedicated to your product needs. 

The team would encompass a wide range of specialists like UI/UX designers, front- and backend developers, and QA specialists. 

This model is best suited for companies that need skilled employees but don’t have the hiring budget for it or want to build a product as fast as possible.

Pros

  • Fully focused on your product goals;
  • No talent gap;
  • Fewer legal & HR formalities;

Cons

  • Bigger cost due to hiring more professionals;
  • Less control over the project;
  • Communication can be a challenge between both teams;

So, which one’s the best outsourcing model for you?

There isn’t really a universal solution to this problem. Whatever you choose needs to align with your business goals and product requirements for optimum results.

If you are an up-and-coming entrepreneur, don’t shy away from cooperating with a product development studio. 

Experience and manpower are the two things you’ll need even if you are low on budget. 

However, if you already have an established in-house team and you wish to have the ability to scale your team up or down without worrying about a lengthy and often expensive recruitment process - team augmentation might be your best bet.

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