Consulting vs Resource Augmentation
- steve3626
- Feb 4
- 4 min read
We see this a highly topical subject today, there’s a lot of cases, and value in both models. This has been heightened further with proposed changes in both employment legislation going through parliament in 2025 and an ongoing demand for external expertise, what is right for you?
Most businesses, Private and Public Sector, often face challenges or opportunities that require a bit of extra help. At a high level, two common options to address these needs are Consulting and Resource Augmentation.
While both have their benefits, understanding the key differences can help you decide which approach is right for you and touch on what you should expect from either and the tax position.
What’s Consulting All About?
Consulting is all about bringing in external experts to help solve a specific business problem or offer strategic advice. Consultants are typically hired because they have deep knowledge in areas such as Digital, Transformation, Technology, Governance, or Risk. They don’t just analyse the situation; they provide insights, suggest strategies, and often help put those strategies into action and deliver in full.
Consulting is outcome / project-based, a clear scope and timeline and ultimately an outcome mutually agreed with the client at the outset. At IVARTY Consulting these engagements and projects will be quality assured, managed, controlled and executed to your acceptance, sharing the projects risk by means of milestone / deliverable based approach and payments.
Consultants work closely with senior leaders to understand and help reshape high-level strategies, improve business processes, or boost performance. They’re valued for their experience and fresh perspectives—offering ideas that might not be obvious to the internal team or a contracted /contingent resource.
Typically, this engagement model is outside of HMRC’s IR35 as there is a clearly defined outcome, they will stand up substitutes, as required, they are sharing the risk, and they are firmly on the hook for delivering the contracted outcome.
What’s Resource Augmentation?
Resource augmentation is very different. Instead of bringing in a consultant for strategic advice, it’s about temporarily adding skilled professionals to your existing team, additional capacity. These could be contractors or temporary staff who step in to get specific work done, such as software development or digital marketing. You will be managing these resources on a day-to-day basis and be required to manage them from a project stand point.
This approach is especially helpful when your business needs extra hands to support a particular project, supplementary help. The professionals you bring on work directly alongside your team to get things done, ensuring projects stay on track and on budget. Unlike consultants, augmented staff are to be directed by you, and take care of the day-to-day tasks rather than offering strategic guidance.
Typically, these engagements will be inside of HMRCs IR35, as they are not contracted for the outcome or deliverables, and they are working as required by you, with your management and direction.
Comparing the Two Approaches
1. Expertise vs. Execution
The main difference between consulting and resource augmentation comes down to their focus. Consultants provide high-level guidance and strategic insight, while resource augmentation focuses on the execution side of things—adding skilled people to get the work done.
If you need strategic solutions to a complex problem, consulting is probably the best route. But if you need extra hands to meet a short-term demand, resource augmentation is the way to go.
A key factor, and hidden cost, for resource augmentation is you will need to manage the resource/s, which can be exhaustive.
Our Demand & Capability Solution (DaC) is closely aligned to resource augmentation, however, is fully managed and reported on – a halfway house between the two. An enticing commercial level, however the strain of direction and management of the augmented resources is owned by us, providing light consulting expertise along the way.
2. Cost Considerations
Consultants tend to be more expensive because they bring specialised expertise and high-level skills to the table. Yes, there's a cost associated to the strategic direction and input we provide. The cost can also depend on the length of the engagement and how complex the project is. But, if their advice leads to long-term efficiency gains or cost savings, it could be money well spent.
Resource augmentation tends to be more budget-friendly, especially for short-term needs. While hiring temporary staff might be cheaper than consultants, it’s worth noting that costs can still add up if the project goes on for a long time.
3. Flexibility and Scalability
Resource augmentation gives you more flexibility when it comes to scaling your team. If you need extra developers, data analysts, or project managers for a short-term project, you can quickly bring in the right people without any long-term commitment. This makes it a great option if your needs are constantly changing.
Consulting can be flexible too, but it’s often more structured, with specific deliverables tied to high-level outcomes. So, while it’s adaptable, it might not offer the same kind of day-to-day agility that resource augmentation can.
4. Long-term vs Short-term Focus
Consulting is often geared toward long-term success. Consultants help develop strategic roadmaps that guide a business towards growth and improvement over time.
In contrast, resource augmentation is typically used for short-term needs—whether it’s to get a project over the line or fill a specific skill gap. Once the project’s done, the augmented resources are usually no longer needed.
The Bottom Line
Ultimately, whether you choose consulting or resource augmentation depends on what your business needs right now. If you’re looking for expert advice and strategic direction to solve a big problem or seize an opportunity, consulting is the right choice. But if you just need extra hands to get a project done, resource augmentation offers a more flexible and cost-effective solution.
In many cases, the best solution might be a combination of both. You could bring in consultants to help develop a plan, and then use resource augmentation to execute it. By considering the scope, expertise, and timeframes of your project, you’ll be in the best position to choose the right option for your business.
We hope you found this interesting and welcome your thoughts and experiences.
At IVARTY Consulting we have a successful track record of delivering both models. Please get in touch to understand more, whether that is Consulting or Resource Augmentation, or as we call it Demand & Capability (DaC).
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