IT Staff Augmentation: Worth the Cost? A $100,000 Impact Analysis

Maximizing ROI: IT Staff Augmentation Analysis
Amit Founder & COO cisin.com
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What is Staff Augmentation?

What is Staff Augmentation?

 

Staff augmentation refers to outsourcing workers to meet an organization's staffing requirements and goals, such as creating a game app with seven developers.

At the same time, your in-house team only possesses four. Suppose these developers require experience creating robust applications. In that case, their hiring may significantly delay your project launch date and potentially cost revenue in lost business opportunities.

Staff augmentation allows you to hire three developers within weeks for faster project completion without legal hassles and documentation associated with full-time employment.

Augmenting your staff often includes outsourcing. Staff augmentation becomes redundant when your app goes live as its work ceases.

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There Are Many Types of IT Staffing

There Are Many Types of IT Staffing

 

Three ways can be used to augment staff:


Commodity-Based Augmentation

Commodity-based augmentation primarily adds employees to an already established business by hiring workers that don't necessarily require complex skill sets but still fulfill their essential functions.

It is instrumental when there is a shortage of workers or companies need to quickly fill jobs that don't necessitate extensive qualifications - fast hires may require commodity-based augmentation for fast results.


Skills-Based Augmentation

Businesses can increase their staff by hiring skilled workers. They will be more educated and experienced than the average worker, allowing them to perform tasks faster than other employees.

They may have special skills not available at other organizations, making them valuable to the organization.


High-Skilled Augmentation

Staff augmentation refers to hiring developers individuals with tech stack for specific organizational tasks; individuals hired may include those performing highly-skilled activities like product design or problem resolution.

You can choose whether it is temporary (staff augmentation) or long-term. Short-term staffing solutions involve temporary workers helping complete one project at once; for instance, a campaign needing graphic design assistance could benefit from having an intern on staff augmentation for just that project, making this short-term.

Long-term staffing refers to hiring individuals for extended periods, typically one or two years.

If an employee has become indispensable to your company and you want them to continue contributing their expertise over an extended period, long-term staffing could be necessary.

Also Read: IT Staff Augmentation Company


Staff Augmentation: When Should You Use It?

Staff Augmentation: When Should You Use It?

 

When and how to add more staff is crucial. These are the five situations where a staff increase is ideal for your company.


Reinforce Your Internal Team

Enhancing or complementing your existing technical expertise is essential, even if you already have software developers on staff.

This will be necessary when launching a product or initiating a project. Then, adding to your IT staff is a great idea.


To Bridge Skill Gaps

Your workload likely includes multiple projects simultaneously, and each may call for different skill sets in various specializations.

Since demand can change rapidly from project to project, addressing it dynamically on each one may require adding skilled developers with unique specialties that might otherwise go unused, saving money and energy in training in-house staff.


Expand Your Team Quickly

You should expect to spend some time searching for someone with deep IoT and Dart experience.

It is easier to find and hire an expert using the augmentation model. The vendor must be contacted, the resume of the developer reviewed, and an interview conducted.


The Deadline Must Be Met

From job postings to onboarding, the hiring process is lengthy along with job interviews with schedule interviews.

It takes two months to hire an employee. The staff augmentation method is a great way to meet the needs of IT departments, regardless of whether your contract will be short- or long-term.

The global software developer pool is also available to companies, allowing them to hire from anywhere globally.


You Cannot Use Other Models

You should take control of the work done by the developers and manage their workload.

Integrating software developers into your team is a great way to motivate your employees and focus more on the business.


What Makes Staffing Popular in IT?

What Makes Staffing Popular in IT?

 

IT staff augmentation has become so widespread due to its ease of hire, especially given the enormous market for software products and services.

The projected to surpass $1.493 billion by 2025 (an 11 percent compound annual compound growth rate). Such high rates require accessing an adequate pool of experts - something resource enhancement provides.

Staff augmentation offers IT companies a practical, flexible hiring solution that meets today's stringent hiring requirements.

Traditional methods require many steps for in-house team recruitment: screening and background checks, employee registration processes, and payroll services. Unfortunately, such lengthy processes make hiring talent quickly for urgent projects too time-consuming or resource intensive, not to mention challenging to fire employees if seeking temporary workers with engineering excellence.

Staff augmentation provides companies with flexible solutions which meet these challenges effectively and reduce overall employer value when searching for temporary workers.

Staff augmentation can be accomplished quickly since your vendor selects competent developers with relevant expertise and work experience, leaving only you or an executive from your company to interview and hire those selected.

It allows your business to stay agile and aligned with project deadlines and deliveries without incurring revenue losses or delays, helping prevent slow market launches or revenue drops.


What Are The Different Types Of Staffing Services? How To Select Them

What Are The Different Types Of Staffing Services? How To Select Them

 

IT Staff augmentation services allows companies to scale up their team quickly and gain access to specialized talent temporarily.

Knowing the different types of services available and which one is best for you is essential.


Staff Augmentation On-site

Staff augmentation on-site is the hiring of temporary workers to work in your office.

The service is designed to allow for seamless integration and direct collaboration with existing teams. Staffing on-site is ideal for projects that require close coordination, alignment between teams, and direct interactions.This ensures effective communication between existing employees and the team member you are adding.


Staff Augmentation By Remote Workers

Remote staff augmentation (RSEA) provides businesses access to global talent pools while offering cost-cutting solutions simultaneously.

RSEA's flexibility and scalability are unparalleled while working across different time zones, making collaboration much simpler - essential components in an RWA work environment.


Staff Augmentation For Projects

The project-based approach to staffing focuses on hiring experts who can help with a particular task or assignment.

Businesses can tap into the expertise and skills of experts without having to commit long-term. The project-based approach to staffing is an excellent option for short-term projects requiring specific skills. This allows you to adjust your staff size based on the project's needs, which ensures optimal resource allocation.


Staff Augmentation Based On Teamwork

Team-based staffing entails hiring an entire group for one project or task simultaneously, pre-assembled with all the skills required to complete complex endeavors.

This method offers excellent benefits when looking to assemble complementary talents or meet deadlines quickly and effectively, as it facilitates effective collaboration while streamlining project execution.


Selecting The Best Staff Augmentation Services

Selecting The Best Staff Augmentation Services

 

Consider the following when selecting a provider of staffing services:

  1. Experience and Expertise: Search for service providers with a proven track record in delivering services of high quality within your specific industry.
  2. Scalability and Flexibility: Make sure the provider can scale up or down the team based on your needs.
  3. Culture Fit: Determine the cultural fit between your company and that of the service provider to achieve seamless integration.
  4. Project Management and Communication: Assess the communication channels and tools used by providers to manage projects and their methodologies to achieve effective collaboration.
  5. A pool of Talent: Assess the provider's access to a pool of professionals with diverse soft skills who can meet your needs.

What Is The Best Staffing Model To Use?

What Is The Best Staffing Model To Use?

 

When you are outsourcing talent, it is essential to choose the best resources and staffing options.

Consider these factors when choosing an augmentation model.

  1. Consider the estimated timeline for your project. Staff augmentation is an excellent option if you need to complete the project in less than six months. You can choose from other options if you don't need it completed in less than six months.
  2. Calculating cost - Determine the development costs of training your internal development team so that they can work with an augmented workforce. Compare the cost of hiring dedicated staff or outsourcing the project to a third party. Staff augmentation can only save money if communication and management are effective.
  3. Consider your data's sensitivity before you release it. Signing an NDA contract and augmentation agreement with developers and vendors is a great way to do this.

Consider the total project duration and carefully calculate your expenses to choose the suitable augmenting outsourcing model.


The Pros And Cons Of Hiring IT Staff

The Pros And Cons Of Hiring IT Staff

 

Staff augmentation isn't the right option in certain situations because multiple outsourcing engagement models are available.

We've put together a list that will allow you to decide whether augmenting staff is right for you.


The Pros

  1. Flexibility- As mentioned, flexibility is a lucrative aspect of resources and staff addition. It is time-consuming and expensive to find and hire suitable candidates. There are also multiple paperwork steps involved. You can avoid the same hassles by increasing your staff.

Staff augmentation allows your organization to hire or fire as many employees as needed without going through a complex development process.

Starting with six programmers could eventually lead to hiring two without worrying about formalities for contract termination or recruitment processes. Furthermore, flexible resource addition makes budgeting (weekly/monthly payments, hourly rates, etc.) even more straightforward than it was previously.

  1. Cost reduction- Outsourcing talent results in massive savings. No extra fees for holidays, leave, taxes, or any other benefits are required. You don't have to pay extra for recruitment or legal fees because your vendor will cover these average costs.
  2. Huge Time-Saving- Writing job descriptions, posting them for public review, interviewing candidates, and filling out all necessary paperwork can take extensive time and energy. Staff augmentation offers relief as outsourcing providers will handle everything for you; all that remains for you to do is conduct interviews to gauge candidates' suitability before passing their details along to HR for further screening and consideration.
  3. Direct Communication - Staff augmentation allows you to work directly with your staff members and assign tasks directly. To monitor progress, sprints can then be set up using project management software such as cisin, etc... You will receive direct reports from hired developers, so you constantly communicate while keeping tabs on everything.
  4. Productivity Increase- The staff are entirely dedicated to the project and dedicate their time. They need to work as part of a team that handles multiple daily projects. This means their productivity levels will remain high, and the project can be completed on time.
  5. Global talent- It goes without saying that when adding staff, you are no longer limited by the local talent pool. Hiring locally and in person may require lowering your standards to hire the staff required for your project. The IT Staff augmentation service is available globally, allowing vendors to recruit talent and collaborate remotely.

Cons

  1. Privacy risks- A certain level of trust will be required when outsourcing. Working with third parties and involving them in internal operations is part of the deal. You must therefore conduct regular audits of your security to identify any threats or hazards. Also, you should obtain an NDA signed by all the new staff members for total data security and protection.
  2. Management bottlenecks- Since staff augmentation involves outsourcing, the employees you hire are unlikely to work in your office. To avoid management hurdles and work efficiently, you must set up efficient communication and management channels that keep your in-house and augmented staff on the same page during project completion.
  3. Control of quality- Managers prioritizing cost savings over other criteria often need to hire better developers. It can lead to cost overruns, project delays, and security issues for the end user. You can easily avoid it by setting up strict quality control procedures. By obtaining feedback from past clients, you can verify if the augmented staff is well-trained and capable of completing their assigned tasks.
  4. Lack of technical knowledge- Conducting a thorough selection process to find the best talent is essential. If your team is not performing well, hiring new staff to fix the problem may be tempting. This can lead you into trouble. A thorough selection process can allow you to examine the developer's experience and portfolio to determine if it's right for your company.

Read Also: Unlocking the Power of AI: Enhancing Efficiency in IT Staff Augmentation


The Challenges and Solutions of IT staff Augmentation

The Challenges and Solutions of IT staff Augmentation

 


Finding The Best Expert To Hire:

The success of any project depends upon finding top talent. A study by Korn Ferry indicates that by 2030 over 85 Million jobs may need more qualified people.

Hiring veterans with vast experience is crucial; organizations often face difficulty selecting candidates who meet technical and cultural sensibility requirements for specific projects.

Solution Partner with a reliable and credible staffing company to find solutions.

Look for partners with diverse skill sets, deep talent pools, technology knowledge expertise, and exposure across business types, verticals industries as well as meeting ISO, PCI DSS, or HIPAA security standards - steps which may include:

  1. Review the business model and onboarding processes.
  2. Understand the project management and training methods, as well as their availability,
  3. Review the portfolio and references.
  4. Look at the case studies of success and other stories.
  5. Examine their resources, infrastructure, backup, compatibility, and backup.
  6. Assess communication actual skills, personal development, safety, teamwork, and other metrics

Communication and Management:

Do not partner with individuals lacking interpersonal and team-oriented capabilities that meet your expectations.

Unreachable members who fail to attend meetings or respond promptly when called can become liabilities; resources who refuse to show up at meetings or do not attend stand-up scrums as scheduled and stumble when using tools like chats, emails, and project management software are equally disqualifying resources.

Solution: Avoid regions that do not match the team dynamic. To create an efficient working environment, it's critical that resources "stay" on-site during working hours if they are to contribute effectively and can quickly work alongside one another.

Candidates willing to communicate and accept questions or instructions would provide great value; projects would benefit significantly from mature developers that follow best coding practices while working well within teams; here are a few additional points of advice:

  1. Demonstrates a hands-on, proactive willingness to take on tasks and to iterate as needed
  2. Make sure your employee understands the language
  3. Candidate is willing to work with team schedules and culture
  4. Knows different methodologies for project management services, such as Agile, Scrum, and Kanban.
  5. Work in a safe environment using the appropriate tools and technologies
  6. Demonstrates flexibility and understanding of critical deadlines
  7. Respect source code, confidential data, and intellectual property

Knowledge Transfer

Unreliable and inconsistent knowledge transfer creates chaos in any workplace, making it hard for peers to utilize best practices when assigning duties or passing instructions.

A systematic approach should be employed during various phases, from kick-off through implementation; when informal knowledge transfers become out-of-hand at any point during projects, they could spiral out of control leading to late deadlines or poor-quality outputs.

Solution: You must invest in tools and resources that will reduce silos, facilitate knowledge sharing and learning, and increase efficiency through user-friendly collaborative methods and transparency.

Mature and well-organized teams typically employ effective strategies for collecting project information as well as assigning tasks and tracking progress; additional tips could include:

  1. Prepare the information as spec sheets (e.g., video, test documents, guidelines) and other assets.
  2. Create a systematic roadmap planned and have9 a proper breakdown of milestones.
  3. Define your knowledge transfer item
  4. Choose the best knowledge transfer heads to convey the data
  5. The minutes of the Meeting should be sent to the participants.
  6. Hold meetings with key stakeholders and hold Q&A sessions to reinforce and discuss information
  7. You need to track and measure your ongoing efforts to stay on top of things.

Flexible and Scalable:

Imagine that your project requires additional resources than was initially requested; is the partner's pool of developers sufficient for your needs? Working with vendors without sufficient expertise or those relying too heavily on freelancers could jeopardize its success; recruiting can delay project completion and cause time-to-market delays - this wait time increases when AI/ML or high-end technology experts are required.

Solution: Any flexible agency providing staff augmenting services must have access to IT specialists on short notice and be able to enlarge and scale up teams as necessary quickly.

When looking for vendors for staff augmenting, select companies who possess large pools of talent capable of taking multiple tasks on at the same time - this way, your business has backup developers available should one be needed when deadlines loom large and you need extra developers quickly. Additional things to keep in mind:

  1. Calculate the number of active and total personnel required to perform the role.
  2. Avoid companies with high attrition rates by checking the rate.
  3. The employee's Net Promoter Score, the work index, culture ratings, and overall brand are all worth checking.
  4. Calculate their average recruitment time and the method they use to recruit candidates.
  5. Set the number of rounds for screening/review and assessment practices
  6. Talk about how the partner explores and absorbs talent
  7. Find out what your business is doing to promote employee inclusion and retention

Legal Investments and Returns

Make sure your contract obligations precisely reflect what you need and want because disagreements over contracts can delay business operations and compromise projects by failing to thoroughly explore all scenarios and negotiate issues between two entities without creating delays in projects.

Failure to abide by their terms puts projects at risk or causes delays - make sure yours do.

Solution: Before hiring IT staff augmentation companies, create more clarity in the contract by discussing possibilities and creating one which provides proper control over quality, security, and challenges.

Watertight contracts (leak-proof contracts) cover every scenario without leaving room for disputes to arise - also, make sure your return-on-investment clauses provide for that! Here are other helpful hints:

  1. Analyze the risks and rewards of the investment in the company that provides staffing services
  2. Understanding the breakdown of the investment value
  3. Make sure your instructions are clear.
  4. Set liability limits by establishing clauses of limitation.
  5. Introduce penalties for breaching contract terms
  6. Establish guidelines and warranties for safety-proofing measures in case of delays or disruptions.
  7. Set clear terms for invoice issuing and payment.

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The Wrap-Up

IT staff augmentation services offer an ideal solution to these difficulties by hiring efficient employees without long-term contracts and taking advantage of flexible remote talent without dealing with tedious paperwork or processes.

Staff augmentation allows businesses to address challenges they might be experiencing more effectively and remain competitive by hiring efficient personnel without long-term commitments or cumbersome processes.

Cisin's AI-backed Intelligent Talent Cloud makes finding and hiring Silicon Valley-quality remote developers that match your requirements more accessible than ever; we find them for you within 3 - 5 working days so your workforce is up and running more quickly.