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Embedded teams

Staff augmentation vs. hiring vs. an agency: how to choose

You need more engineering capacity. You can hire, bring in embedded engineers, or hand the project to an agency. Each is the right answer in some situations and an expensive mistake in others. Here's how to tell which one you're in.

By the Sixth Wave team4 min read

Start with the question behind the question

When a team runs short of engineers, the conversation usually jumps straight to who to hire. The better first question is what kind of gap you actually have. There are three, and they call for different answers:

  • A permanent gap. The work will be there for years, it's core to what you sell, and you want the knowledge to stay in the building.
  • A capacity gap. You know what to build and how, but there aren't enough hands, or you're missing one skill, such as AI, DevOps or a senior architect, for the next six to eighteen months.
  • A project gap. There's a defined thing to build, with a beginning and an end, and nobody on your team has the time or the background to own it.

Most bad staffing decisions come from treating one kind of gap as another: hiring full time for a capacity gap that will be gone in a year, or handing a core product to an outside agency because hiring was slow.

Hiring full time

Hiring is the right answer for a permanent gap. A full-time engineer builds context over years, carries your culture, and becomes the person who knows why the system works the way it does. Nothing replaces that for the core of your product.

The costs are mostly in time and risk. A search for a senior engineer often takes months, and the cost of recruiting is paid whether or not the hire works out. Then there's ramp-up before they're fully productive, and the cost of getting it wrong, which we cover in what a bad engineering hire really costs. Hiring also assumes you know what the role should be. For a new capability, such as your first AI work, that's often the thing you don't know yet.

Staff augmentation and embedded engineers

Staff augmentation means bringing in engineers who work inside your team, on your backlog, in your tools, under your direction, while someone else employs them. The best version is what we call an embedded team: the person is vetted for your role and your culture, sits in your standups, and is reviewed and supported by senior people on our side.

It fits a capacity gap. You keep control of what gets built and how, which you don't with an agency, and you don't carry the long recruiting cycle or the commitment of a permanent hire. It's also a low-risk way to find out what a new role really needs before you hire for it.

Where it goes wrong is when the provider is just a resume pipeline: people nobody has really checked, a recruiting fee up front, and nobody to call when it isn't working. The questions to ask any provider are who actually vets the people, what happens if someone isn't the right fit, and how much notice it takes to end it.

An agency or outsourced project

An agency, or any fixed-scope outsourced build, fits a project gap. You agree what will be delivered, the agency runs its own team and process, and you get a finished system. Done well, it's the least management overhead of the three: you're buying an outcome, not people.

The trade-off is control and continuity. The agency's engineers aren't in your standups, the knowledge leaves with them when the project ends, and changing direction mid-project usually means renegotiating. That makes an agency a poor fit for a core product that will change every week, and a good fit for a well-defined system with a clear finish line, especially if the contract gives you the code and documentation at the end.

The three options side by side
Hire full timeEmbedded engineersAgency or project
Best forA permanent, core gapA capacity or skills gapA defined project with an end
Time to startUsually monthsUsually weeksWeeks, after scoping
Who directs the workYouYouThe agency, against an agreed scope
Who employs themYouThe providerThe agency
CommitmentLong termMonth to month, if the terms are goodThe length of the contract
If it's the wrong personA performance process, then a new searchThe provider replaces themThe agency's problem, until it isn't
Knowledge stays withYour companyYour team, if they work in your toolsThe agency, unless it's handed over

A simple way to decide

  1. Will this work still be there in three years, and is it core to what you sell? Hire, and consider embedded engineers to cover the gap while you search.
  2. Do you know what to build, but lack the people or one specific skill? Embedded engineers. You keep direction, and you can scale up or down as the work changes.
  3. Is there a defined system to build, with an end, that your team can't own? A fixed-scope project, with the code and documentation handed over at the end.
  4. Not sure yet? Start embedded or with a short discovery, learn what the work actually needs, then decide whether it becomes a hire.

How our embedded teams work

Our embedded teams are built for the capacity gap. We place product managers, architects, and AI, software and DevOps engineers inside your team, remote, hybrid or on-site as you need. People usually start within two weeks of agreeing the role. There's one monthly rate per person, with no recruiting fee and no hourly billing, and onboarding, senior reviews and cover are included.

Everyone we put forward goes through the vetting we describe here, and you interview them before they start. They stay employed by us, so you aren't taking on an employee. If someone isn't the right fit, we replace them, and engagements run month to month with notice agreed up front.

If what you need is a defined system built and handed over, we do that too, through product development and custom apps, with one agreed price and a free discovery first.

Common questions

Quick answers.

What's the difference between staff augmentation and outsourcing?

With staff augmentation, the engineers join your team and you direct their work day to day. With outsourcing, you agree an outcome and the provider runs its own team to deliver it. Augmentation gives you more control; outsourcing gives you less to manage.

Is staff augmentation more expensive than hiring?

Per month it can look that way, but the comparison should include recruiting costs, time to fill, ramp-up and the cost of a hire that doesn't work out. For a gap that may not last, or a skill you need for a year, embedded engineers often cost less in total.

How quickly can an embedded engineer start?

With us, people usually start within two weeks of agreeing the role. You interview everyone we put forward before they start.

Work with us

Add vetted engineers to your team.

No recruiting fee, one monthly rate per person, and anyone who isn't the right fit is replaced.