Contact us anytime to know more — Abhishek P., Founder & CFO CISIN
As the name suggests, staff augmentation allows companies to hire skilled workers to augment their workforce. Because of their project-based and seasonal needs, IT companies are most familiar with this recruitment method.
Companies often partner with the supplying organization to have access to short-term workers for a specified period of time. Staff augmentation services may take many forms depending on the needs of an organization. They can range from an increased workforce of onsite or remotely located professionals.
IT companies are increasingly choosing staff augmentation services over traditional staffing options due to their many benefits.
Small firms are more inclined to increase their workforce with only a small percentage of permanent staff. Big firms supplement their stable employees with project-based personnel to keep a balanced team of developers.
IT firms are increasingly synonymous with IT staff augmentation because they act as perfect supply and demand outsourcing partners for project delivery.
The significance of increasing IT staff
Staff augmentation bridges the gap between a talent pool with high-level skills and the availability of short-term positions within IT companies.
Because it allows for flexibility in the workforce, staff augmentation is becoming a more popular recruitment method. Although the full takeover of staff augmentation may still be a distant dream, many organizations are moving to a hybrid model.
Many companies are now combining the advantages of traditional staffing with staff augmentation. Permanent employees are rapidly disappearing as Millennials manage most companies.
Staff augmentation can address issues such as lack of experience, skill sets, seasonal workloads, time constraints, or other concerns.
Companies often use staff augmentation to fill high-level roles before they hire full-time employees or when they have unexpected needs that require external resources. It cuts down on the work required in direct hire and can save companies time and money. Augmentation offers all the benefits of additional experience and expertise without the associated cost of full-time employees.
The Seven Major Advantages of Increasing IT Staff
Our lives are becoming easier and more efficient thanks to technology. Information Technology (IT) is not compromising on the above.
IT staff augmentation can help you with everything, from hiring programmers to business intelligence specialists to quick service delivery and customer retention.
This is called staff augmentation in general standards. When a sector-based agency receives many client/customer requests, it must have enough manpower to complete the projects.
Finding the right professionals, evaluating their skills, and hiring them in-house is difficult. This is where outsourcing comes in handy.
In IT staff augmentation, new expertise is outsourced to the company to complete client tasks. This is why it's also known as "subcontracting"!
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7 Business Benefits of Staff Augmentation
Staff augmentation is more than just the idea of furnishing projects. It also has many unbeatable benefits! Let's take a look at them from the next.
1. Legal headache gone
You must understand the importance and complexity of the legal documentation protocol within the hiring process as a recruit manager or general IT employer.
You are responsible for submitting the candidate's profile and other legal documentation to the higher officials. This can be time-consuming and costly. But with staff augmentation support, the outsourced company will take the documentation-recruitment steps and give you a stress-free outcome!
2. Client-Centered Approach:
You will always put your customers or clients first as a business. Outsourcing companies will ensure that your projects are taken care of.
They will provide quality-controlled results that meet your requirements and have been double-evaluated to ensure accuracy and authenticity. This is a way to get high-quality project goal results that conform to your clientele. Be as precise as possible when giving instructions to the outsourcing company.
3. Works beyond Geographies
Imagine that your client needs a software platform for healthcare that has been pre-ordered and comes with fast delivery.
Your immediate instinct as a company would be to rely on in-house soft skills developers. Your project could be:
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Delayed submission and submitted after the TAT estimated.
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Quality is questionable, and the recipient expects a revision.
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The Professional's side is incomplete.
This is why staff augmentation can be a great option to quickly get software developers from anywhere in the world.
You can rest assured that your client will be satisfied!
4. Abundance of Expertise
Although there has been a 40% increase in IT staff hiring, there will always be a need for subject-based, professional expertise.
You may lack the necessary manpower resources for future projects to meet the project's requirements. For such situations, staff augmentation consulting can be beneficial. They can help you find the right professional for your project because they have multiple output platforms and are location-centric.
5. Development Cost Cuts:
From reducing your operational costs to cutting down your additional expenses on broadening your professional extended team, outsourcing tasks with IT staff augmentation companies is cost-effective.
Remote team development can be done with a much smaller budget. The outsourced agency may charge only the consulting fees and tax. Staff augmentation can save your business a lot of money on hiring and selecting IT professionals.
6. Strategic Business Options
It is known that ideas, opinions, and values can vary within a business, even in one industry/domain. This is why augmentation service providers can be useful for the same.
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They offer unique suggestions and feedback to improve.
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They are more adept at Agile methods and practices.
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They could be inspired or competitive.
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They can meet the specific needs of your business through their field experience.
Therefore, staff augmentation companies are known for their superior project management techniques, communication lines, and other information-oriented principles.
7. Setup Risk Minimization:
You will be responsible for preparing the instructions checklist and how to submit the task to the augmentation company before the deadline.
This guarantees efficiency. Your business could also see a decrease in investment risks and other planning issues. The core purpose of IT employee augmentations is to maximize their resources and minimize the risks for your business.
How to choose the right staff enhancement provider
Now that you know the many benefits of subcontracting let's discuss the six key parameters you need to consider when choosing a brand to fulfill your outsourcing needs.
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Data technical involved in your project.
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Current nature, type, availability, and cost of manpower.
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Actual scheduling and deadline estimates.
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Before final recruitment, verify the testimonials.
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No matter if you are looking for new skills or to expand your existing workforce.
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Before going live, test the product.
Read More: What Is The Difference Between Staff Augmentation And Managed Services?
Different types of IT staff augmentation models
A service provider that provides IT staff augmentation services hires its team of software developers who will be onsite at your company for a specified time and help you achieve your business goals.
You should be familiar with the following types of IT staff augmentation models to better reap the benefits of this outsourcing service:
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Core augmentation
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Functional Augmentation
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Temporary staff augmentation
Core Augmentation
This is a contract that shares the company's resources with another organization. It is long-term and full-time.
The core team works full-time at the client site and in parallel with their normal duties in the company. Core augmentation often relies on an agreement between the parties. This contract defines the roles and responsibilities of each party.
Core augmentation's duration is determined by factors like project work, market time, customer satisfaction, and the ability to maintain business continuity. It is also important to predict the staffing requirements, as large staff fluctuations can be unsustainable.
Functional Augmentation
These are contracted resources who temporarily assist the organization with specific project requirements. These resources are not indestructible, a key distinction from core augmentation.
Temporary staff augmentation
This temporary, short-term staff augmentation is contracted to meet specific project requirements. Clients often don't have enough staff to handle all their projects simultaneously.
Hiring a temporary augmented can increase the resources available for multiple projects.
Why is IT staff augmentation so popular?
Today, IT staff augmentation services are very popular for many reasons. The most obvious reason for IT staff augmentation services' popularity is their ability to quickly and easily scale up or down your IT department as required.
This is a huge advantage during times of growth, when you need more staff to meet demand, or when you are trying to cut costs.
You can also use IT staff augmentation services to improve the speed and quality of your IT projects. You can access technical expertise and skills you might not have internally by bringing in external help.
This is especially useful for complex software development companies projects or requiring high levels of specialization.
An IT staff augmentation service is a great way to provide your employees with valuable training opportunities. Your in-house team will benefit from having an augmented team that is familiar with the technology.
Five Undisputed Benefits of IT Staff Enhancement
IT staff augmentation can provide many benefits. The following are some of the most important benefits:
1. Cost-efficiency
Augmentation lets you use specialist skills in your projects without needing additional staff. You can access the expertise and experience of highly skilled tech professionals without needing to pay their salaries, benefits, office space, equipment, or other expenses.
This helps to keep costs down. You can only pay for what you use with most IT staff augmentation services because they are temporary.
Additionally, IT staff augmentation services can be used to save time and money on training and recruitment. Because IT staff augmentation services offer a pool of highly skilled professionals, it reduces the time needed to find the right candidate.
2. Accelerated Project Completion
IT staff augmentation is a common service many organizations use to speed up and complete projects more efficiently.
You can access skills and knowledge not available in your company by bringing in experts. You don't need to wait for your new employees to be fully trained and proficient in the required systems and technologies before you can allow them to start working on your project.
3. Greater Flexibility
As we have discussed earlier, IT staff augmentation allows companies to quickly scale up or down. This is especially useful in times of growth when additional IT staff is needed to keep up with demand.
You don't have to wait weeks or months to find the right candidates for open positions. This is also useful during economic downturns, when you may not be able to hire permanent employees.
Because they can move from one project to the next, Augmented IT staff is more flexible than permanent employees.
Augmented IT staff can be shifted from one project to another as needed. This means they can start working within days of being hired. IT staff augmentation allows for flexibility, so it is possible to find the right people at the right moment.
This increases productivity and collaboration, which can lead to higher employee satisfaction.
4. Expertise at the highest level
Employers can access highly qualified professionals by using an IT staff augmentation company instead of hiring permanent employees.
This saves them money on training and recruitment. This allows you to hire the best people without waiting or paying more while they are trained on your projects.
Although it's true that not all IT staff augment services are equal in quality, many offer industry-leading training programs and mentorship opportunities to their employees.
This helps ensure that you are hiring top-quality employees and improves the quality of your projects. It also increases employee job satisfaction and retention.
5. More Control
Although IT staff augmentation services can provide companies with highly skilled employees, they also allow them greater control over their resources.
Companies can create customized workflows that enable them to closely monitor the activities of their augmented employees.
This allows project managers to track costs and identify resource needs in real time, which can help them improve their efficiency.
This allows you to monitor the performance of your augment employees and hold them responsible for any errors. This improves IT productivity and can increase your company's profits.
Traditional workforces, which have permanent, full-time employees who work a fixed schedule and earn a fixed salary, are slowly disappearing.
Businesses are turning to on-demand staffing to get the best out of their workforce.
On-demand staffing allows workers to be hired for short-term assignments or projects.
A third-party agency provides workers with a pool of available workers at short notice.
Businesses that need to quickly increase their workforce for a project, or need extra workers during busy seasons, can benefit from on-demand staffing.
This can also work well for businesses that need to decrease their workforce during slow times.
Read More: Staff Augmentation Vs Other Models
5 Most Common IT Staff Augmentation Challenges
1. Uncertain goals and general expectations
Poor expectation management is one of the biggest problems that new IT staff augmentation can face. This can happen at both ends of the spectrum.
Developers and companies have equal expectations regarding work placement, regardless of their differences. It is important to clearly define what you expect of the external team members, including their monthly, quarterly, and annual results, and your day-to-day expectations about their tasks and responsibilities.
Setting goals is an important aspect of managing expectations. They should be established regularly regardless of whether they are related to their daily tasks or quarterly results.
Clear objectives will allow remote developers to focus more effectively and be more productive. These are the top project management software engineers that will help you set goals and keep track of tasks.
2. Poor communication and poor project management.
Lack of communication can seriously impact your working relationship with your external development team. Poor project management can lead to both parties withholding information and creating strain in their relationships.
Your remote developers should be contacted regularly via Slack messaging or weekly check-in. Developers should be encouraged to communicate. This can be done by offering support and guidance to them whenever they need it.
3. Inefficient transfer of institutional knowledge
Although your external development team may work remotely, they should still be able to get to know the company for which they are producing quality work.
They should be informed about the company's development methods, social media practices, and mission. You should provide all this information to your incoming developers in a written document. You might also want to meet with them to review the information.
You will likely find that the work produced by your new team is not up-to-standard or meets the content or style requirements if you don't transfer this knowledge.
4. Security issues
Nearshore developers are at risk if they do not have access to IT staff augmentation services. Because staffing requires bringing in an external team to your internal processes, security concerns are a major concern for IT staff augmentation.
It is important to ensure your remote developers can be trusted to protect your clients and their projects and your company's well-being. It is a good idea to have all remote developers sign an NDA immediately after they are hired.
5. Management of contracts is not well done.
Lack of contract management is the last of the five most common problems with IT software staff augmentation.
This is more common than you might think. It has to do with the contractual obligations of your developers and their expected stay in your team. It is important to define the scope of the developer's responsibilities and their expected stay within the team.
You can add a closing statement that both parties can terminate the contract at any time with a standard 15-day notice if you are unsure how long they will be available. This simple addition will save you months of legal hassle!
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What are the advantages of staffing on-demand?
On-demand staffing offers many benefits:
1. Get immediate access to skilled workers
On-demand staffing offers the advantage of having immediate access to qualified workers. On-demand staffing doesn't require you to go through the entire process of hiring and interviewing workers.
Simply contact an on-demand staffing agency to receive a list of available workers.
2. Increased Flexibility
You can hire workers as often as you need them. Workers can be hired for one project or several months.
3. Reduced Costs
On-demand staffing is often more affordable than hiring permanent employees. On-demand workers don't need to be paid for benefits or healthcare.
Training is usually not required as the workers are already competent and ready to go on the job.
4. Increased Efficiency
You can increase your productivity by using on-demand staffing. It is easy to quickly add workers and then release them when they are not.
This reduces overhead costs while keeping your workforce efficient and lean.
6. Scalability
Staffing on-demand is very flexible. It is easy to increase or decrease your workforce's size quickly. On-demand staffing is a great option for companies that are expanding or contracting.
7. Increased Productivity
Your workforce's productivity can be increased by using on-demand staffing. Workers hired to work on short-term projects are more motivated and focused.
They know they have limited time and don't want any wasted time. This can result in better productivity and results.
