| In tough economic times, many companies must | | | | consulting firms provide a viable alternative. Be sure |
| downsize in order to cut costs and survive. Especially | | | | that the consulting firm has a core competency in |
| during times of extended recession, IT resources can | | | | delivering specific types of projects to increase the |
| become one of the first and most aggressively | | | | probability of success. |
| targeted departments for cutbacks and is often | | | | 2. Support and knowledge transfer |
| expected to do more with less. Employing the | | | | A great advantage in delivering a project with |
| appropriate IT staffing and outsourcing strategies will | | | | primarily internal resources is the knowledge gained |
| ensure the optimal technology resources are in place | | | | during the project that can be applied to the ongoing |
| and result in significant savings. | | | | support of the application. However, managers should |
| Many companies expand the use of staff | | | | keep in mind how quickly the size of IT can grow |
| augmentation or professional services consulting | | | | when you try to support all of your specialized |
| through technology staffing and recruiting agencies in | | | | applications internally. It is critical to ensure that |
| order for a downsized IT department to remain a | | | | knowledge transfer is built into the project plan and |
| productive part of the organization. However, before | | | | specifically addressed in terms of tasks and |
| working with an outside staffing provider, there are | | | | deliverables in the project statement of work. This |
| some critical factors to consider. | | | | plan should include documentation; user and technical |
| First, you must understand the differences between | | | | training; a maintenance plan; and possibly ongoing |
| each option. In a staff augmentation scenario, the | | | | support from the firm that provides you access to |
| company adds external resources to supplement | | | | specific expertise when you need it. |
| their existing staff. Consultants work at the direction | | | | 3. Cost, duration and quality. |
| of the company. The company is responsible for | | | | Most often, project requests come with a target |
| tasks and deliverables; planning and managing the | | | | date and budget allocation. Staff augmentation hourly |
| project; and, ultimately, delivering results. | | | | billing rates will be lower than professional services |
| Ideally, professional services consulting is more like | | | | consulting rates. If you have the expertise and |
| buying a solution since the company outsources its | | | | delivery capability, augmenting your internal staff will |
| project delivery to a third party. The third party is | | | | be a more cost-effective solution. However, should |
| responsible for tasks and deliverables; planning and | | | | the project take significantly longer to complete in |
| execution; and is partially accountable for the results. | | | | the staff augmentation model, you may defeat any |
| Both alternatives can be effective and both have | | | | cost savings. |
| their place. To help you make the right choice, | | | | Careful consideration of these three, key criteria |
| consider the following three, key decision criteria: | | | | before making a decision on staff augmentation |
| 1. Internal delivery capability | | | | versus professional services consulting will help you |
| A company must evaluate the size and complexity of | | | | optimize external support resources. Whether in |
| a given project and honestly assess their ability to | | | | times of prosperity or recession, a thorough |
| undertake it. While project management and delivery | | | | understanding of your options before choosing a |
| capabilities exist within most companies, it is often | | | | direction is smart business that will ensure desired |
| not their core competency. If this is the case and a | | | | results and save significant dollars. |
| project is large and complex, professional services | | | | |