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Navigating the fintech landscape? Whether you're an early stage startup building a fintech product from scratch or an established player aiming to hit ambitious milestones, finding the right way to accelete your development efforts is critical. A significant decision every fintech faces is whether to leverage the expertise of an experienced vendor through Outsourcing or plug in talent gaps with Team Augmentation. Which strategy will serve you best in realizing your aspirations?
Let’s dive into these two models and how they can speed up your journey to market leadership.
Main Differences: Outsourcing Vs. Team Augmentation in Fintech
When fintechs outsource, they hand over an entire project —like app development — to an external partner. The endgame? Cost-cutting and efficiency boosting. The development partner takes the reins, managing and delivering the outsourced function end-to-end. 📑
Conversely, team augmentation lets fintechs expand their in-house talent pool with external professionals. These additional resources are managed by the client and work seamlessly with the existing team. The result? Direct control, cost-effective resource utilization, and easy scalability. 📈
Outsourcing Model 💼
Outsourcing is a popular choice in the fintech industry. Companies entrust the whole project to a software development partner, freeing up internal resources to focus on core competencies and strategic initiatives. With the perks of cost savings, seamless project execution, and access to specialized expertise, outsourcing can position your fintech company ahead of competitors.
Key Features of Fintech Outsourcing:
Advantages of Fintech Outsourcing:
Disadvantages of Fintech Outsourcing:
Team Augmentation Model 📈 Team augmentation enables fintech companies to supplement their in-house talent with external experts. This model keeps the control in your hands while providing the flexibility to scale the team as per project needs.
Key Features of Fintech Team Augmentation:
Advantages of Fintech Team Augmentation:
Disadvantages of Fintech Team Augmentation:
In essence, fintechs, big or small, must evaluate their immediate and future needs. If the goal is to reduce time-to-market or venture into specialized domains where a vendor offers more expertise, outsourcing might be the answer. On the other hand, to fill specific talent gaps without long-term commitments, team augmentation shines.
This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author.
Tachat Igityan Founder and CFO at destream
03 December
Luigi Wewege President at Caye International Bank
02 December
Victor Irechukwu Head, Engineering at OnePipe Services Limited
29 November
Nkahiseng Ralepeli VP of Product: Digital Assets at Absa Bank, CIB.
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