Staff augmentation vs T&M vs fixed-bid SOW: how to choose
Choose staff augmentation when you have a team and a plan and need specialists fast; Time and Material when scope will evolve and you want a managed team; and a fixed-bid SOW when scope is clear and you want price certainty. Many programs use more than one over their life.
Who directs the work
In staff augmentation you direct the specialists. In T&M direction is shared with a delivery lead. In a SOW the provider owns delivery against agreed acceptance criteria.
How risk is shared
Staff augmentation and T&M bill on effort, so scope risk stays with you. A fixed-bid SOW moves delivery risk to the provider, which is why it needs a short discovery first.
A practical path
Start with a SOW for a defined first release, keep a T&M team for the roadmap, and add specialists through staff augmentation where skills are scarce.
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