Contact us anytime to know more — Abhishek P., Founder & CFO CISIN
Here's something important. It is wise to hire developers as a long-term investment. Some companies have a dedicated team, while others hire developers as needed.
Working with local developers can be expensive in any country, especially if you live in the USA, UK, or Canada. The staffing model is a great example!
What is IT Staff Augmentation?
The staff augmentation strategy is popular. You can employ developers in another country that have a lower cost of living.
This approach is used by the organization to scale its internal team to meet IT needs rapidly.
It is almost impossible for a company to stay competitive in this age of rapid technological advancements and constant evolution.
It is essential to meet the needs of high-tech clients today. The harsh reality of the digital marketplace is that successful organizations require top-notch development teams. In the computer industry, it's critical to accept and recognize new programming languages and technology.
How can you ensure that your development teams are always the correct size and composition to use new technologies and meet current challenges if hiring IT staff is difficult and expensive? Staff Augmentations are the answer.
Outsourcing the Talent required for IT staff augmentation is a way to expand an in-house team. It allows a business to remain agile and avoid the headaches associated with hiring in-house Talent, particularly if a high level of expertise is required.
The IT staff augmentation model is highly recommended:
- You can expand or scale your team if you have one already working at the local office.
- You are building a team that will need specialized skills to meet your business & project requirements.
- You can only hire the remote developer you want if they are available near your location.
There are Many Types of IT Staff Augmentation
Three ways can be used to augment staff:
Commodity-Based Augmentation
This type of enhancement primarily increases the number of staff in a company. This type of augmentation involves the hiring of employees that could be more skilled but who can perform basic tasks for the company.
When there are shortages of workers and companies need to quickly hire new employees or fill jobs that don't require high-level skills, a commodity-based augmentation is an option.
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Skill-Based Augmentation
The hiring of skilled employees is a form of staff enhancement. They will be more educated and experienced than the average worker, which allows them to perform tasks faster than other employees within the organization.
They may have special skills that are not available at other organizations, which makes them a valuable asset to the organization.
Highly-Skilled Augmentation
These individuals are recruited from other organizations to work on specific projects. These individuals may be hired to perform tasks like developing new products and solving complicated problems.
You can divide it into short-term or long-term. Staff augmentation is a short-term process that involves temporary staff to assist you in completing a particular task.
If you are working on a campaign and need help with design, for example, an intern could be hired to assist you. It would only be for a single project, which is considered short-term.
Long-term staffing is hiring someone to work for you over a long period, usually a year. Your employees have become so indispensable for your company you want to keep them on board.
The Hiring Process is Fraught with Problems
The Staff Augmentation Model is useful in the IT Industry, where a large team of highly-specialized individuals is required for many projects.
Companies concentrate on their core objectives when they don't need to worry about hiring and maintaining developers.
Common Challenges:
- Hiring is a costly process.
- Hiring involves a wide range of costs.
The staff augmentation method allows you to pay only for work performed. It also eliminates any expenses associated with hardware and software, such as recruiting or training.
You can count on your offshore developer to start working immediately!
The Hiring Process is Long
In the event of a sudden dismissal, resignation, acquisitions, or large projects that have exceeded the capabilities and abilities of current staff, the organization will need extra assistance.
Companies are rushing to fill vacancies as the business' productivity is in danger. It is important to consider the time spent finding, training, onboarding, and hiring new employees.
The time required for phone calls, Skype, in-person interviews, and skills tests is considerable. Background checks can add a week or more to the selection process.
All efforts are wasted if the applicant withdraws a few days before joining. It takes a minimum of one month to hire and train a developer. After the training period, it takes at least 2 weeks or 1 month for a developer to reach peak performance.
It may take up to a month for a manager at a high level of management before the desired outcome is achieved.
The IT Staff Augmentation Model allows you to hire a top offshore development team who can start working in a few days.
In addition to being effective, these specialists add value because they are authorities in their fields. The turnaround time to reach full productivity for these companies is not more than one month but less. It is beneficial to businesses because they can be ready for any loophole that may arise.
The Turnover Rate is High
It becomes increasingly difficult to find dedicated developers for office space as the economy grows. This issue can be addressed comprehensively with the IT Staff Augmentation Model.
The company can rely on a steady and consistent workforce of skilled employees. Productivity is not affected by random resignations.
The Benefits of the IT Staff Augmentation Model
Reduction in the Recruitment Time
A substantial amount of resources are needed to develop and carry out a recruitment drive. It takes a lot of resources to create an employment Description (JD) and update it on different employment portals.
It takes time and effort to interview candidates after narrowing the field. If something goes wrong during the employment process, the business must start over.
Developers can be hired by the staff augmentation team in a matter of days. In a few days, the staff augmentation team can hire a new employee.
It takes a lot of time to post job descriptions and create them, publish them on different platforms, interview the candidates, and complete the paperwork required to bring on a new full-time worker.
Staff augmentation allows you to say goodbye to all this, as the outsourcing company will handle everything. Although you may need to interview the candidate to determine their suitability, the rest of the work is done for you.
Efficient Staff Management
Comparing offshore IT staff augmentation services to managed services gives you more control of the workflow within the team.
On top of that, action can be taken instantly.
Concentrate on Talent and not Vendors
If you are looking for the best software developers in the industry, you should pay close attention to their experience.
Focus on the abilities you require, then limit your options. Imagine you want to use Flutter to construct a mobile application. Therefore, you should only give staffing agencies that can help you hire mobile app developers who have experience with Flutter apps serious consideration.
Staffing services allow you to hire top Talent without committing long-term. It is up to you whether you hire a single developer or an entire team.
Qualitative Quality on a Budget
It can be expensive to pay full-time salaries for the team, particularly startups. To keep your staff happy, you need to give them bonuses and other benefits from time to time.
This is different when you choose the IT staffing model. Hire qualified developers who can produce work of the same standard at a fraction of the cost.
A Talented Pool of Experts
Staff augmentation agencies are quick to provide the required experts. The staff augmentation agency gives an organization access to a global team of dedicated software developers.
This allows them to collaborate with experts around the world. The best method for building a remote staff in another nation that can assist you in achieving your business goals is the IT Staff Augmentation Model.
Companies can make the most of their internal and external resources by using staff augmentation. They are able to locate any gaps and close them.
Companies can access expertise through On-Demand Staffing services, which also lessens the requirement for training and development specialists to be involved in the project.
Reduced Operational Cost
Staffing and recruitment for augmentation services save on hiring costs incurred by full-time IT staffing and save on additional operating costs.
Hiring is done on a project-based basis, avoiding the payment of full-time salary when the project has yet to start.
Benefits like health insurance and other benefits are provided to employees who work full-time. Outsourcing employees eliminates all of this.
Outsourcing employees reduces the total operational costs.
Increased Flexibility and Scalability
Adopting the model of IT staff augmentation makes it easier to scale up and down. This model brings a new level of flexibility, scalability, and adaptability.
The best way to increase the staff is by adding new employees as the need arises. This will save you from having to hire full-time workers and lay them off.
Productivity is increased - IT staff augmentation is known for its high productivity. This is because the employees are completely focused on a project and dedicate their time to it.
They are separate from a team that handles many projects in a single day. Their efficiency is high, and the project will be completed as desired. You don't have to limit yourself to local Talent when augmenting your staff.
Hiring locally and in person may require you to lower your standards to hire the staff required for your project.
What Makes Staff Augmentation Popular in IT?
It's because of its ease in hiring that IT staff augmentation has become so popular, especially with the huge size of the market for software.
Staff augmentation is a flexible solution that fits well with today's growing hiring requirements for IT companies. Hiring an in-house team involves many steps.
From screening and background checks to registration and payroll processes. It's a lengthy and resource-intensive process that is not suitable for hiring Talent quickly to work on urgent projects.
It is difficult to fire such employees, which reduces your value as an employer, especially when you are looking for temporary workers.
Staff augmentation can be done quickly since your vendor will handle all hiring procedures and paperwork. The vendor selects competent developers who have the necessary expertise and work experience.
You or the executive of your company only need to interview and hire the right candidates. It allows your business to stay agile, aligned, and on time with project timelines and deliveries. This will help you avoid revenue losses and slow market launches.
Compare Staff Augmentation with Different Outsourcing Models
Outsourcing IT Talent is what we mean by outsourcing staff. It is only one model of outsourcing. Other options include independent contractors, time-and-material (T&M), offshore development centers, and dedicated teams.
How do they compare to staffing augmentation, and what is the best option for you?
These models can have certain aspects that are different. They include:
- Renting and purchasing office equipment.
- Recruitment (hiring developers or dedicated development teams and checking their availability).
- Payroll (accounting and salary).
- The developer's commitment (the amount of time they will be able to devote).
- Management (determining if the vendor or client is involved).
- Overhead costs (buying of equipment, licensing, furniture, and payment for bills).
- Salary Reviews (salary increases and bonuses).
- Benefits for employees (training, workshops, health coverage, 401K, and so on).
- Communication with the development team/developers.
- Review of the rate (setting prices).
Read More: IT Staff Augmentation: What Is It and How Does It Work?
Independent Contractors vs. Staff Augmentation
If you engage a freelancer, you (or your customer) would be expected to handle the majority, if not all, of these duties.
If you select IT Staff Augmentation, the vendor will handle administration, payroll, and communication.
By using independent contractors, you can avoid giving vendors any commissions. Instead, you would employ the contractor.
Independent contractors must be aware that certain limitations apply to them depending on where they sit within an organization. When you use independent contractors, you won't have to pay overhead expenses or offer benefits to your staff. Their role may also include limited access to company information or data that would normally be shared with your additional staff.
Managed Services vs. Staff Augmentation
It is clear that the main difference between IT staffing and managed services lies in the level of control the client gives the vendor.
The former assigns only the staffing required to the vendor and leaves the rest under the client's control. However, the latter is a full-service. The suppliers of manager services take on external management of the client's non-core system.
They oversee each component of their client's operation while offering Talent.
Managing services necessitate more delegation. For companies who want to make the most of their resources and concentrate solely on their internal team for their strategic aims, it can be a terrific alternative.
A managed service provider also frequently has a developer and development team "benched." This implies that rather than having to wait while the vendor hires staff, you can start working on project-related duties as soon as the contract is signed.
Dedicated Teams vs. Staff Augmentation
Despite the similarities between these two outsourcing methods, there are significant differences. When the client requests a dedicated staff, the outsourcing provider is given extra responsibilities.
You can directly manage remote devs with resource and staff augmentation.
However, a team of dedicated professionals will work under vendor supervision. While the former requires a full-time commitment, the latter is often working with several clients at once.
Vendors review the salaries of dedicated teams, whereas clients do it for new staff.
Offshore Development Centers vs. Staff Augmentation
It is comparable to renting an apartment versus building your home.
A representative office is what your vendor sets up. The vendor will find the office, recruit staff, and provide other services such as internet, furniture, supplies, etc.
The vendor will include all of these services in their fee. Once everything has been set up, you will have the ability to manage your team, office, internet connection, supplies, etc., on your own.
Time and Material (T&M) vs. Staff Augmentation
In the time-and-material outsourcing model, a client is responsible for paying a team of developers or a single developer to work under their supervision.
The staff augmentation model is different as temporary employees are hired by the augmentation company, which handles all taxation, paperwork, and administrative expenses.
If a client wants to, they can take on the responsibility of payroll. In general, clients are responsible for salary reviews and benefits.
However, sometimes vendors will also take on these responsibilities.
What is the Best Way to Make IT Staff Augmentation Work for Your Business?
If you implement the model correctly, it can be highly beneficial for your company. Take into consideration the following:
Choose Projects with a Fixed Due Date
The best projects for staff augmentation are those that have a limited duration. Staff augmentation is most effective for this type of project.
Instead of hiring local staff to build a business website or app, hire an offshore team and start within one week.
Staff augmentation is popular for a good reason. It is better to hire a developer for a project than recruit someone full-time.
Ensure Clear Communication
Every company needs to have a well-defined communication plan. You must apply the approach as early as feasible in the development cycle to allow for open collaboration.
Misunderstandings also result from a lack of communication. The project may suffer as a result of this. It's crucial to stay in touch with new hires.
Roles and Responsibilities
By defining roles for each member, you can ensure that they are held accountable. The project's core goals should be understood by both in-house developers and those working offshore.
The project managers and leaders of the teams should make sure that all tasks are equally distributed to team members.
Ensure that all tasks are completed promptly and to the standard expected. Let the team share any feedback or opinions that could benefit the project. It is essential to have a development workflow in place for the IT staff augmentation model to work.
Each member must be able to see the entire process, including all steps and who is responsible for what. A documented workflow is best for everyone.
Embrace Tools and Technology
According to a report, firms that use project management Software Staff Augmentation can meet budget restrictions while maintaining quality standards.
Project management technologies and tools are essential for companies to get the most out of their augmented teams.
Be Sure to Document the Codes
Every app relies on code documentation. Organizations must ensure the outsourced team members keep track of code in different stages.
It is important to maintain and update the process. It is easier to identify bugs and risks when several developers are working on the same project. Use a collaborative approach to code documentation.
Swagger is a tool that helps implement clear mythologies in-code documentation.
Find the Skill Gaps in Your Company
Each business process needs a thorough analysis. It can provide you with valuable insights into the current talent gap within your organization.
A talent audit can be used to assess the project's requirements or make plans for upcoming projects. It aids in identifying the present talent gap.
Determine the candidate's criteria after you have filled in the blanks. Are you seeking a temporary or long-term external resource to assist with your business? Your use of the staff augmentation model can close this gap.
Identify the Skill Set Requirements
The process begins once the role of the project is defined. You can do this by simply shaking hands with a partner in offshore software technology.
The benefit of hiring developers temporarily from an IT Staffing Company is that they have experience in managing the same kind of project as yours.
This will allow them to bring in their expertise, which can be a great advantage. Developers who are dedicated and have experience in various projects will bring broader knowledge than those who only work on the same type of project for an extended period.
Cons of IT Staff Augmentation
Risks to Privacy
Outsourcing work requires a degree of trust. Working with third parties and involving them in internal operations is a must.
Therefore, you must conduct regular audits of your security to identify any threats or hazards. Also, you should obtain an NDA from the new staff to ensure data security and privacy.
Management Bottlenecks
Staff augmentation involves outsourcing; the employees you hire will likely work outside your office. To avoid management hurdles and work efficiently, you need to set up efficient communication and management channels.
This will keep both your in-house and augmented staff on the same page during the project.
Quality Control
Poor developers are often hired by managers who prioritize cost-cutting over other criteria. It can lead to cost overruns and project delays, as well as 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.
Lack of Technical Knowledge
To hire the best Talent, a meticulous selection process will be necessary. You may rush to hire new staff if your team needs to perform better.
This can be disastrous. A thorough selection process can allow you to examine the developer's experience and portfolio to determine if it's right for your company.
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The Bottom Line
A staff augmentation model can help a business keep its competitive edge. Several benefits of this paradigm include cheaper operational costs, fewer legal responsibilities, and less paperwork.
Additionally, it offers more freedom. Several challenges can be resolved by expanding the company's personnel. With augmentation, the hiring process is simplified and made more effective.
Every business that wants to expand should give this recruiting strategy considerable consideration.
The staff augmentation method will allow you to get a fresh perspective by hiring the best developers. Experts will bring efficiency and discipline to the company, which in turn encourages the staff within the organization to perform better.
Staff augmentation can be a great solution to these challenges. The staff augmentation solution can help you overcome these challenges. You can hire efficient employees without committing to a long-term contract.
You can stay competitive by hiring flexible remote Talent without having to worry about tedious paperwork and other processes.
