In today’s fast-paced business environment, small and midsize businesses (SMBs) face constant pressure to innovate, adapt, and deliver results quickly. That issue often concerns what 3rd party service providers can help reach those strategic goals, particularly regarding technology solution development (software, cloud services, and data-related). Beyond the question of who, there is a question of how – meaning under what service model a 3rd party should be onboarded. One decision that can significantly impact the success of your projects is whether to build agile teams or rely on staff augmentation to supplement or complement your existing technology teams. While both models have merits, agile teams often provide more value, particularly for SMBs looking to maximize efficiency and output. The nature of the work to be done usually dictates the model type. For example, a 1-person team may be needed to build APIs for integrating 3rd party services. There, the decision to use staff augmentation is likely the most straightforward. In other cases, especially where multiple team members are needed and the team is multi-disciplinary, an agile approach may be more suitable.
What Are Agile Teams?
Agile teams are cross-functional professionals collaborating to achieve a common goal using agile methodologies. They are designed to quickly adapt to changes and deliver high-quality results in iterative cycles, known as sprints.
Key Benefits of Agile Teams
- Flexibility and Responsiveness: Agile teams can pivot quickly in response to changing project requirements or market conditions, ensuring your business remains competitive.
- Continuous Improvement: Agile practices emphasize regular reflection and refinement, helping teams constantly improve their processes and outcomes.
- Higher Engagement and Ownership: Team members in agile setups tend to be more engaged and involved in the project, leading to better results and increased job satisfaction.
- Efficient management and resource utilization: Teams are led by experienced business and technology professionals who understand the objectives from both perspectives and ensure these objectives are met throughout the solution development lifecycle.
Staff Augmentation: A Quick Fix or a Long-Term Solution?
Staff augmentation involves hiring external resources to supplement your in-house team temporarily. This model is often used to fill skill gaps, manage workload spikes, or provide specific expertise on a project-by-project basis.
Pros of Staff Augmentation:
- Rapid Deployment: Quickly scale your team to meet immediate project needs without the long-term commitment.
- Access to Specialized Skills: Bring experts with the precise skills required for short-term projects.
Cons of Staff Augmentation:
- Lack of Long-Term Cohesion: Augmented staff may need to fully integrate into your company culture or team, leading to communication gaps and inefficiencies.
- Limited Flexibility: While staff augmentation can provide short-term relief, it lacks the adaptability and continuity that agile teams offer, especially in larger projects.
- Higher Management Overhead: The client is responsible for managing the individual team members and their deliverables
Why Agile Teams Provide More Value for SMBs
For SMBs, where resources are often limited, and the need for rapid innovation is high, agile teams offer several advantages over staff augmentation:
- Focused Client Interface: With agile teams, a dedicated individual—often a Project Manager or Product Liaison —serves as the primary point of contact with the client. This streamlined communication allows for precise and focused interactions, helping to keep the project on track and aligned with the client’s goals.
- Cost-Effectiveness: While staff augmentation might seem cheaper upfront, the long-term benefits of having a dedicated agile team—such as reduced turnover and higher productivity—often outweigh the initial savings.
- Sustained Growth: Agile teams are not just about delivering a single project; they are about fostering a continuous improvement culture that drives long-term success for your business.
Case Study: Success Through Agile Teams
Consider the example of a mid-sized tech company that needed more in-house expertise to keep up with its product development timelines. Initially, they turned to staff augmentation, hiring external developers to bridge the gap. However, the temporary nature of the solution led to communication breakdowns, project delays, and inconsistent quality.
Switching to an agile team model, they brought in a dedicated, cross-functional team that integrated with their existing staff. The result was significantly improved product delivery times, higher quality outputs, and a more engaged, motivated team. This shift also led to a 30% increase in project completion rates and a 25% reduction in project costs over time.
How Tangonet Solutions Can Help
At Tangonet Solutions, we specialize in building and deploying agile teams tailored to the unique needs of SMBs. Whether you want to enhance your development capabilities, manage workloads more efficiently, or drive innovation, our agile teams offer the flexibility, expertise, and dedication required to achieve your business goals.
Ready to transform your project management approach? Schedule a Call with Us today to explore how our agile teams can drive your business forward.
While agile teams and staff augmentation have their place in the business world, agile teams often provide superior value, especially for SMBs looking to stay agile, innovative, and competitive. By investing in agile teams, you’re not just filling a gap but building a foundation for sustained growth and success.
