"Don’t put all your eggs in one basket." This might not be sound advice in love, but much more so in business. While many organizations stick to one team augmentation provider, bigger companies usually mix it up by working with multiple vendors.
So, is vendor lock-in in hiring a clever strategy or a risky move? Sometimes, having a single, trusted partner can pay off. But in other circumstances, spreading your bets across several partners might be the smarter play. Let's break down the pros and cons of going all-in with one provider versus building a diverse partner network for team augmentation.
Vendor lock-in may come in two flavors: forced and voluntary. Forced vendor lock-in occurs when a company becomes so reliant on one vendor's products or services that switching to a different provider feels nearly impossible—whether due to high costs, incompatibility, or long-term contracts
That said, some businesses voluntarily stick with a single staff augmentation provider for convenience, consistency, or quality of service. While this approach offers stability, it also leaves the door open to exploring other providers if needed. And yes, both types of vendor lock-in apply to team augmentation and hiring, especially in the tech world.
Here’s how it might play out: A company with 150 in-house employees needs extra hands to ship its product faster. To bring in more talent, it partners with a staff augmentation company. Over time, the nearshored team grows to 30 members, and the company signs an exclusivity agreement with the partner, locking them into the relationship. Everything’s going smoothly, but could it be missing out on fresh perspectives by staying with just one vendor?
Like any business strategy, working with one vendor has its pros and cons. The key is to find the right balance between stability and flexibility.
On the plus side, going with one service provider offers cost savings through fewer setup fees, lower onboarding costs, and a chance to negotiate bulk pricing. This comes in handy when you need to scale your tech team fast. It also makes life simpler. With one point of contact, you get consistent quality in hires and deliverables. And if something goes wrong, you know who to call—no need to track down multiple vendors.
As your hiring partner gets your business better, they can align new hires with your company culture more smoothly so they feel like a natural part of your in-house team. But building the perfect tech team is a two-way street. While your partner’s expertise matters, your feedback is just as crucial. By staying involved, you can help your partner fine-tune your team even after the initial hires are onboarded.
Over time, costs could rise, too. With exclusive control over your recruitment, they might charge more for urgent hires when you could have found more affordable or better options elsewhere. Plus, your team risks stagnating without fresh talent and new ideas, which can hold back innovation and growth.
Now that we’ve covered the ups and downs, let’s discuss when it might be a good idea to mix things up and add some new providers to your lineup.
Imagine your company’s augmented team faces service disruptions because of issues with your provider. If you have another hiring partner working on your tech projects, you can keep your team running smoothly without interruptions, even when facing vendor challenges. It's also crucial to ensure a seamless launch of cooperation with your new vendor.
For example, all our clients are guaranteed a risk-free start of the partnership. That means no up-front costs and no binding commitment. You only start paying once we’ve found the perfect tech experts for your team. And if the first month doesn’t go as planned, walk away with no exit fees—no strings attached.
When your business grows to the enterprise level, one staff augmentation partner might need to be able to scale your team faster. With more projects, you need fresh talent to take the lead. Adding providers can help expand your teams, build new ones, and even provide extra management support as your operations grow.
To serve our clients at any scale, we rely on a vast, international network of professionals and keep updated on the evolving clients’ businesses. With 96% of our recommended candidates acing their trial periods and above-average retention of 95.7%, our teams are built for the long haul.
Are your current provider's ideas getting stale? Maybe you’re working on a new app or a big platform upgrade, but your provider’s tech expertise or creativity isn’t quite up to par… It might be time to bring in a fresh perspective. You can team up with a new partner to spark innovation while letting your current provider stick to what they do best.
Our Client and People Partners are always looking for ways to improve your team’s skills through ongoing training and exciting projects. This way, they make sure your experts stay motivated and challenged. And if you need new ideas, we can always bring in more talent with creative solutions.
Over time, the balance between cost and efficiency can shift. Bringing in more providers can spark some healthy competition. When vendors know they’re competing for your business, they’re more likely to offer better prices, improve their services, and deliver great value.
At Pwrteams, we bring top-quality service with complete transparency. Instead of pushing the priciest talent, we focus on finding the best match for your needs. Any changes to team members’ compensation are discussed with you first to keep spending in check.
So, all eggs go in one basket? That depends. But we have other words of wisdom that are suitable for any situation. Our motto, “The power of together”.
Sometimes, it’s just us working closely with your teams to achieve your goals. Other times, we team up with different team augmentation providers who bring their unique skills and strengths. The goal is always the same: to deliver the best solution for you so your business can move forward with confidence.
Get in touch, and let’s see how we can make it happen together.