An engagement model is the commercial and working structure under which a company buys technical work from people or providers. Common examples include staff augmentation, dedicated teams, project outsourcing, managed services, fixed price and time and materials.
Fixed price and time and materials split risk differently: one agreed price for a defined scope, or billing for the hours and costs actually spent. Under fixed price the provider absorbs overruns; under time and materials the client does.
In-house development is done by engineers you employ; outsourced development is delivered by an external provider under contract. The choice weighs control and long-term knowledge against speed to start and access to specialist skills.
Staff augmentation is an engagement model where a company adds outside engineers to its own team for a set period, managing their work directly. The provider sources and employs them; the client keeps control of priorities, process and delivery.
A dedicated team is an engagement model where a provider assembles a group of engineers who work full time on one client's product for an extended period. The client sets direction and priorities; the provider handles hiring, employment and retention.
Staff augmentation adds engineers who work under your direction; consulting brings experts who diagnose a problem and own advice or a deliverable. Augmentation buys capacity, while consulting buys judgement.
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