Business's Success

Comparing Dedicated Team, Staff Augmentation, and Outsourcing: Make Informed Decisions for Your Business’s Success

The way we use the bank today has changed significantly. So much so that if a bank doesn’t have a mobile app, we don’t even consider being part of it. The number of unique mobile users continues to grow worldwide; thus, an intuitive, user-friendly mobile banking application becomes a necessary consumer touchpoint for banks that aim to increase their market share.  

Therefore, we will explore the options for developing mobile applications in fintech and how to choose the right one for your business.  

Let’s briefly look at the differences: 

Dedicated Team

What is a dedicated team, and how does it work?

If your startup is expanding quickly, this may be the one. A dedicated team is about hiring a self-sufficient team from a provider to help you with your project. All the professionals selected for your project are looking towards your needs for the best experience and skill sets, and they are usually located off-site and are managed only by the provider. Still, as a client, you may lead the team yourself or delegate the project management responsibilities to the hired company.  

This model is ideal for long-term projects, and the provider should deeply understand your business to align with your primary objectives.   

What are the benefits of a dedicated team? 

Let’s see some of the benefits when it comes to working with it:  

1. Cost efficiency  

One of the most significant benefits is the low project costs because, for a reasonable price, you would have access to full-time workers. Hiring an internal developer differs from hiring a dedicated team for your project.  

2. Access to personalized management.

Sometimes, when it comes to standard outsourcing, one of the doubts you may have is the need for more transparency. If you hire a dedicated team, you will be okay with this because you will have access to permanent feedback and, of course, be able to make the changes needed to your project without further delays.  

3. Long-term partnership.

Having the opportunity to renovate or readjust your project is one of the advantages of a dedicated team. Regarding long-term projects, this is necessary and a relief for your company’s needs.  

4. Full commitment.

If you want a deeper working relationship and increase the team’s productivity, you can choose, under an agreement, the exclusivity of the team participants to work only on your project. 

When is it appropriate to consider a dedicated team? 

When the project scope is not already defined, and you consider that the requirements of the projects may change during the development process, the developer team is the answer. 

Choose if you are looking for: 

  • Long-term continuous projects that evolve and may go on indefinitely. 
  • Hire developers locally because ofthe need for more time or money. 
  • Leadership experience and software project management 

Staff Augmentation

What is staff augmentation, and how does it work? 

It is a flexible engagement model where you receive assistance on a scalable, per-project basis, making it simple to focus on the company’s objective. It’s all about hiring professionals on a short-term basis, where the augmented staff are integrated into your organizational structure, working under your management and supervision. 

What are the benefits of a staff augmentation? 

Let’s see some of the benefits when it comes to working with it: 

1. Cost-efficiency.

You only pay for the talents/skills you require when you need them, whether you need someone for a few weeks or months. In this way, your company will cut down costs without sacrificing quality. 

2. Choose the skills according to your needs.

You can select and choose the best candidate with the precise set of skills that your project requires. In this way, you are saving the cost of investing in internal skill development and saving time hiring someone new. 

3. Have experienced professionals with objective opinions.

By filling in-house skills gaps with outside talent who have expertise in their fields and do not require training or assistance, you can confidently delegate tasks and projects and get a more objective assessment of how things are going.

When is it appropriate to consider staff augmentation? 

When you have an in-house team of professionals, but a new project is emerging with demands and skills that your crew needs, then staff augmentation is what you need.  

Let’s see when it is ideal to choose this model:  

  • If you need people with higher skill levels.  
  • If you need to improve communication with the team.  
  • If you need to expand the team fast with expertise in areas your team does not have. 

Outsourcing

What is outsourcing, and how does it work?

Outsourcing is the answer if you want to avoid dealing with team management or office preparation to welcome new employees. This model allows you to delegate your entire project development to an external service provider full of professionals, which is more cost-effective than hiring new employees because of the lack of expertise you have in-house. 

What are the benefits of outsourcing? 

Let’s see some of the benefits when it comes to working with it:  

  1. It is timesaving and cost-efficiency.

When you outsource your project to experts, you won’t need to go through the trouble of training them because it is not only a daunting task but also expensive, and it is more cost-effective to have an external provider handle the work.  

2. Access to an expansive talent pool.

Outsourcing connects your company with international talent in areas of expertise and highly sought-after technical skills, helping your business in unimaginable ways. Thus, you will have access to various roles such as product manager, software architect, mobile, cloud, data, and test engineer.  

3. Help focus on priority.

With the help of outsourcing, your team will be able to focus entirely on critical projects or initiatives because you will be delegating more operational development tasks to outsourced team members. 

When is it appropriate to consider outsourcing?

When you have a project with well-defined requirements and deliverables and use that time to focus your team on other priorities, outsourcing is the answer.  

Let’s see when it is ideal to choose this model:  

  • If you are looking forward to expanding your project.  
  • If the project is new for your company, and you wish to keep the focus of your in-house team the same.  
  • If you need experts in areas your team does not have expertise in.

How to choose the suitable modality for your business

Each modality is tailored to each project depending on the needs. Here are some guidelines to help you choose the best modality:  

1. Project Scope  

Having a clear picture of your business goals and a clear knowledge of what your business needs is helpful. Try to also clearly understand the working document’s scope before contacting any possible outsourcing.  

2. Budget  

Being clear about how much money you have to hire the proper modality is crucial in choosing the best option. For example, suppose you are looking for a cost-effective solution. In that case, you should select staff augmentation or outsourcing. Still, if you have the means to assemble and train specialized teams, you can choose a dedicated team, even though it can involve higher costs because of the resources and infrastructure.  

3. Internal capacity management  

It is essential to understand your internal capacity management. For example, if you want to define the guidelines and responsibilities and supervise the development process, you should choose a dedicated team. On the contrary, it could be daunting if you decide on staff augmentation or outsourcing.  

We know that selecting a suitable model and partner for your project can be challenging, but after having explained it in depth, we hope you can make the best decision for your company. For complex projects, a dedicated team is the best; for the lack of professionals on your team, staff augmentation is the best, and if you need help with all the projects, outsourcing is the answer.  

Remember that with the correct orientation and understanding of the options, you can choose the best option for your company’s current needs, maximizing efficiency and competitiveness in the fintech market. 

Ready to take the leap?  

Consider partnering with ThinkUp, an experienced fintech app development company that understands the intricacies of fintech mobile apps. Let us help you transform your business and stay competitive in today’s fast-paced. 

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