Software Outsourcing Models – FAQs

Startups often go for project-based outsourcing when building MVPs. It’s cost-effective and faster to execute. Alternatively, staff augmentation lets them stay lean while scaling gradually.

Yes, many businesses start with one model and evolve as they grow. For example, starting with project-based delivery, then moving to a dedicated team once the product scales.

Absolutely. Companies often blend models—for instance, using staff augmentation for frontend work while assigning backend to a dedicated team. It depends on complexity, scope, and timelines.

These terms refer to location, not the structure. You can use any model (augmentation, dedicated, or project-based) in a nearshore or offshore model. Learn more in our full Nearshore Outsourcing Guide.

It depends on factors like budget, timeline, technical complexity, and how involved you want to be. If you need close collaboration, staff augmentation works well. For end-to-end delivery, go with a project-based model.

Yes, Agile works with any model, though implementation varies. Staff augmentation fits daily standups, while dedicated teams can manage full Agile cycles. Project-based models use Agile mainly for phased deliveries.

Project-based outsourcing gives you a fixed cost based on scope. However, if the project scope evolves often, dedicated teams offer better flexibility with predictable monthly rates.

With staff augmentation, you manage tasks and people directly. Dedicated teams require less micromanagement but benefit from weekly syncs. Project-based vendors usually handle everything and report progress per milestone.

Yes. Many companies integrate external talent with internal teams. For example, using augmented developers for UI while their in-house team focuses on backend APIs.