Having worked on both sides of this, I've found that it depends a lot on the organization and the reason an outside team is being brought in.
The best situation is where the vendor team is needed to supplement the work load of an in-house team. For example, if the business has 6 epic level projects that need to be done by a certain time but only has the in-house staff to complete 2 within the time frame, then bringing in a vendor can allow all of the projects to be completed in time.
Another situation where it can work is where the vendor is brought in when there is no in-house team and the organization doesn't want to have one. How well this works depends on the quality of the vendor team and management support. I've seen low quality teams come in and make a mess of things and situations where it worked very well.
A situation that can go bad is when a vendor is brought in because management has lost confidence in the in-house team. The in-house team is usually berated and treated poorly by management. This can turn ugly quickly as conflicts and resentment escalate.
A similar situation is the "mythical man-month" scenario in action where warm body vendors are brought in to increase the staff size on a troubled project. But, there's lack of a plan and bringing the vendor team up to speed actually slows down the lagging project.
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Having worked on both sides of this, I've found that it depends a lot on the organization and the reason an outside team is being brought in.
The best situation is where the vendor team is needed to supplement the work load of an in-house team. For example, if the business has 6 epic level projects that need to be done by a certain time but only has the in-house staff to complete 2 within the time frame, then bringing in a vendor can allow all of the projects to be completed in time.
Another situation where it can work is where the vendor is brought in when there is no in-house team and the organization doesn't want to have one. How well this works depends on the quality of the vendor team and management support. I've seen low quality teams come in and make a mess of things and situations where it worked very well.
A situation that can go bad is when a vendor is brought in because management has lost confidence in the in-house team. The in-house team is usually berated and treated poorly by management. This can turn ugly quickly as conflicts and resentment escalate.
A similar situation is the "mythical man-month" scenario in action where warm body vendors are brought in to increase the staff size on a troubled project. But, there's lack of a plan and bringing the vendor team up to speed actually slows down the lagging project.