Maximizing ROI: How Much Can Your Business Save with IT Staff Augmentation?

Boost ROI with IT Staff Augmentation Services
Abhishek Founder & CFO cisin.com
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Contact us anytime to know moreAbhishek P., Founder & CFO CISIN

 

For IT professionals like software developers, this tactic is most frequently employed. It can also be used in other businesses that require more professionals with certain talents.

You will need to know more about staff augmentation if you have short-term needs for experts. We'll be explaining the following:

  1. This strategy
  2. How staff augmentation works
  3. When should it be used
  4. Both pros and cons

Defining Staff Augmentation

Defining Staff Augmentation

 

The temporary use of an external workforce to assist with project activities is known as staff augmentation. To fill up the gaps and satisfy deadlines, this is done.

With the help of this hybrid approach, internal and external specialists can collaborate on the same project. Each component is often handled separately, though.

To find new abilities that aren't frequently employed, this technique calls for an evaluation of the present team and project.

By bringing in outside specialists, a staff augmentation provider can momentarily improve the organization's capacity to meet its objectives.

This strategy has the benefit of not turning the augmented personnel into normal workers when they become extended members of the team.

Only when necessary are they compensated? Also, because they are aware that work is done on a project- or engagement-by-project basis, it makes it simple to dissolve the connection.

Because the external resources are not regular workers, it is also cost-effective. Overhead expenses like taxes and hiring fees will be covered by the service provider.

Augmented staff is different from hiring extra employees who aren't used 100% of the time. You only need them when they're needed.


How Staff Augmentation Works

How Staff Augmentation Works

 

Let's look at an example to help you understand how staff augmentation works. Imagine you run an online store and are searching for methods to improve the convenience of buying.

Online shopping is more popular than going to actual stores. You may build an app exclusively for your shop to increase client awareness of your brand.

A web professional on your current team maintains your website current, safe, and functional. Despite their ability to tackle the new assignment, they will feel overburdened and could put off their regular obligations.

Consider project outsourcing at this point. You can pick from a talent pool of app talented developers provided by a staff augmentation company.

In order to accomplish your company objectives more quickly, this service provider can assist you in finding a committed team.

The vendor manages the specifics of selecting the most qualified individuals. You'll gain immediate access to the resumes of skilled app developers.

To close the sale, interview and interrogate them. After that, the contract can be signed.

This Staff Augmentation Model Has Four Steps:

  1. Here is the section where you define the objectives of your project. Also, you must decide what you need from the tools you use. This will enable you to choose the professional you want and the expertise they possess in order to complete your project on schedule and on budget.
  2. Talent Finder When recruiting outside specialists, consider the talents you need. Interview each candidate to make certain you hire the finest people.
  3. You may still onboard the chosen applicant by explicitly describing his tasks, responsibilities, and restrictions, even while staff augmentation services manage all legal matters.
  4. Continuous assistance: Managed services are offered by service providers. To assist you in creating a successful collaboration, they send either an account manager or an HR manager.

When To Use Staff Augmentation

When To Use Staff Augmentation

 

Perhaps you are wondering if I need staff augmentation to supplement my in-house expertise for projects. These three factors will help you decide if this is the right model for you.


Project Length

The optimal use of staff augmentation is for short-term tasks. Instead, it could be more economical to recruit someone who is a member of an inside team or to use another kind of outsourcing, such as managed services.

For projects lasting between three and twenty-four months, IT staff augmentation is an excellent outsourcing technique.


Confidentiality

Public disclosure should be avoided for some initiatives. Certain initiatives could jeopardize intellectual property rights.

In these situations, possibilities for staff augmentation should be carefully considered.

Sure, a service provider's written contract can provide some level of security. There is a chance that you hired the expert without doing a background check or in-person interview.

It is worthwhile to do a risk analysis.


Reduced Project Costs

Staff augmentation models entail managerial and administrative expenditures, as we previously noted. This covers the price of administrative, workstation, and office space.

You will only be charged a certain amount based on the number of employees needed for your project.

As a result, you won't have to spend money on people you won't be working with for a time, allowing you to make the most of your budget.

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Types Of Staff Augmentation

Types Of Staff Augmentation

 

There are six types of staff augmentation. We'll discuss each type and the best use of it, as well as some pros and cons.

This will help you choose the right type of staff augmentation for your project.


Traditional Staff Augmentation

  1. What it Is: Traditional staff augment hiring staff from a staffing agency to help you build your in-house staff. This allows for the traditional segmentation of temporary staff through a service provider or staffing agency.
  2. Where to Use: Traditional staff augmenting is great as it can be used on any type of project. This includes IT-related engagements.
  3. The pros: Traditional staff augment allows for a lot more flexibility when it comes to how many external resources are needed. It also gives you many options as to which resources you would like to add to your team.
  4. Cons: Traditional staff augmentation is difficult. It's often hard to find a service provider/staffing agency that has qualified personnel.

Independent Contractors

  1. What it is: Independent contractors involve looking for contractors and engaging directly with them.
  2. Where to Use: Independent contractors can be great for projects that don't have a clear focus. Contractors are often willing to give input on the overall direction. Independent contractors are great when you have a single need in your team.
  3. The pros: Independent contractors can be flexible and often of very high quality. Independent contractors are flexible and can be hired to cover multiple needs.
  4. Cons: Hiring independent contractors can be difficult. You need to find a trustworthy contractor who is high-quality.

Master Vendor Staff

  1. What it Is: Master Vendor Staff involves approaching a staffing agency in order to supply a large number of temporary workers.
  2. Where to Use: Master vendor staff works best for companies that have a sudden need for increased capacity and cannot hire staff internally.
  3. Advantages: One of the main benefits of master vendor staffing is that it is often inexpensive and easy to scale up in order to meet great demands.
  4. Cons: It's difficult to guarantee quality when you hire a lot of temporary workers. You might also have inconsistencies.

Boutique Agency

  1. What it is: A boutique agency focuses on high-quality staff augmentation and a smaller skill set.
  2. Where to Use: Boutique agencies can be great for businesses that have specific needs or require rare basic skills.
  3. Professionals: Boutique agents are among the best quality workers that you can hire.
  4. Cons: One of the main problems with boutique agencies is that they are often more expensive than other options.

Gig Platforms

  1. What it is: A gig marketplace is an online platform that hosts a talent pool for highly skilled workers. It's similar to freelancers.
  2. Where to Use: Gig platforms can be used for short-term and minor tasks.
  3. Pros - Gig platforms offer a lot of flexibility and speed if you need to quickly get your project started.
  4. Cons: gig platforms have varying quality workers. You'll need to either get lucky or do some thorough vetting.

On-demand Talent Platforms

  1. What it is: On-demand talent platforms are online platforms that host a talent pool of highly-skilled workers, but they are more structured than traditional gig platforms. On-demand talent platforms will take care of the majority of the vetting so that you don't have to.
  2. Where to Use: These platforms can do a lot of vetting and are useful for almost all types of projects.
  3. The pros: On-demand talent platforms offer flexibility, quality, speed, and great customer service.
  4. Cons: Because the platform does some of the management and up-front vetting, it can be more expensive than gig platforms.

How To Choose The Right Staff Enhancement Model

How To Choose The Right Staff Enhancement Model

 

Even though it's enticing to concentrate on the instant advantages, picking the appropriate model can assist in making things far simpler and prevent needless delays.

What else ought you consider when selecting staff augmentation? These are some of the things you need to remember.


Identify Your Needs

You can ask questions such as:

  1. What is my ultimate goal?
  2. What can I anticipate from the staff augmentation tools I use?
  3. How much time can I commit to leading my outside team members?
  4. What skill gaps should I fill, given my present capabilities?

Assess Your Candidates

To help you evaluate your candidates, use the questions below. There are many other factors to consider. You don't have to hire a temporary employee in a hurry.

But you should still take your time when choosing a person. You'll have more delays if you hire the wrong person.

While examining applicants, look at their portfolios to determine whether they have worked on comparable projects as you.

You can request references to confirm their veracity. Also, you may look for comments and reviews online.

When you contact them, enquire about their work process. By doing so, you'll be able to assess how quickly they work and decide whether they can reach your deadline.

This will demonstrate their level of job proficiency.

Candidates who automate their own labor can be seen favorably, albeit this is not always practicable. You might also give the applicant an outline of your project and ask them how they would go about working on it.

You may recruit any external workforce from anywhere in the world with staff augmentation. As a result, you have the choice of hiring team members locally or remotely.

You should think about how to accommodate time differences and overlaps in business hours.

Query them regarding the project. Professionals who are enthusiastic about their tasks are more likely to complete them on schedule.


Start with a Pilot Task

To make sure you are all on the same page, begin with a pilot task. This will enable you to assess the candidate's suitability to assist you in developing your project.

Testing is the greatest technique to validate that your criteria are being understood and to evaluate the candidate's skills. This is necessary in order to avoid any major roadblocks that could cause unneeded expenses and additional hassle.


Take Into Consideration The Cultural Fit

While dealing with members of an outside team, it's critical to keep this in mind. Cultural differences may be a significant source of unaccounted costs when a misunderstanding occurs.

A significant cultural divide may result in a lack of understanding and predictability.

Tasks will be finished more rapidly as a consequence, and team leaders might need to micromanage. While hiring, take the company's culture and work ethics into account.

Read More: The 12 Great Benefits of IT Staff Augmentation for Your Business


Five Tips For Effective Staff Augmentation Implementation

Five Tips For Effective Staff Augmentation Implementation

 

  1. It's critical to establish objectives and benchmarks if you want to conduct staff augmentation successfully. What are your objectives when adding external staff? Prior to implementing a staff augmentation plan, it's critical to define your objectives, timetables, and processes.
  1. Identify the skill gaps in your staff: By doing this, you'll be able to cover your workforce's skills gap and avoid having to learn new talents on top of what you already know.
  1. Choose the appropriate vendor: It is essential that you select the appropriate vendor to supplement your resource. The ideal service provider will have the same culture and values as your business. It's crucial to keep in mind that not every vendor employs the same hiring process. There is one for each seller. The one that best meets your demands should be chosen.
  1. In order to achieve corporate objectives: it is essential to build and maintain strong working connections among your team members. Whether your staff was hired internally or externally, you should try to keep them engaged and focused. Remote workers should also be taken into account. Employees who work remotely should feel equally appreciated and a part of the team as those who work onsite.
  1. The ability to lead is crucial because great leaders build great teams and great businesses. All employees, especially those acquired from outside sources, require effective leadership. Micromanagement shouldn't be your main priority. Yet, in order to maximize the benefits of your augmentation drive, you must offer direction, encouragement, and encouraging comments.

Six Benefits of Staff Augmentation

Six Benefits of Staff Augmentation

 


Flexibility

When you operate on a project-by-project basis and need more workers, you can recruit whatever many professionals you need.

In an app project, you may start with a UX/UI designer, an iOS developer, an Android developer, and two quality assurance engineers if you need to supplement your IT personnel. Afterward, you can continue to employ the developers full-time.


Cost Control

Instead of temporarily hiring specialist individuals to assist with a temporary project, additional resources are needed to hire more personnel for the project.

When the project is complete, you can avoid paying for the benefits and salary of employees who lack the necessary abilities.


High Productivity

Temporary staffing is hired to perform a task or complete a project. This will ensure that they are productive and efficient by focusing their efforts on the task at hand.


Knowledge Control

An internal staff augmentation team with key competencies can remain. So, the internal team will still be able to comprehend the technical issues and make the choices, even if you employ temporary professionals to assist you on a project you are working on.

They'll still be knowledgeable in their field. The hiring of new teams will be simpler because your own staff is already knowledgeable.


Speed Of Integration Into Workflow

When you add a full-time worker to your team, you will need to control overhead. If you choose staff augmentation, even if the new employee is added remotely, process integration will be considerably simpler.


Provides Objective Perspective

Companies planning to continue projects will benefit from the perspective of a temporary specialist. Temporary specialists can provide outside perspectives on the project entire development process and workflow that may not be possible for the in-house team.

This can increase productivity and may even be a better option for your project.


The Pros and Cons of Staff Enhancement

The Pros and Cons of Staff Enhancement

 

Staff augmentation is not an exception to the rule that everything has two sides to it. We'll go through the advantages and disadvantages of this tactic before you decide whether to employ it or not.


The Advantages of Staff Augmentation


Full Administrative Support

You may save time and money by outsourcing your recruiting and HR needs to staff augmentation providers. The hiring agency also covers additional costs, such as insurance.

This enables you to concentrate completely on your company or project.


Access to a Global Pool of Trained Specialists

Although the majority of your workforce is likely based nearby, outsourcing knows no geographical bounds. This implies that you have access to possibly manage a remote team members from all around the world, particularly if staff augmentation firms have local offices.

You can swiftly hire software developers and IT specialists who fit your demands thanks to access to a bigger talent pool.

Certain countries and regions have the best talent in particular fields. You can tap into those individuals with special skills to ensure that you have the resources you need to complete your projects on time and within budget.


Less Training Needed

With staff augmentation services, project management is made simpler.

You won't have to waste your time training or onboarding them because they already possess the necessary abilities to perform the job.

Tech developers that operate as staff augmentation contractors are multi-skilled. Compared to internal workers, tech developers that work for outsourcing companies are more skilled and have a wider range of app and technology specializations.

Use current resources to expedite the project rather than invest money in internal training for new abilities.


Scalability

Whatever your staff size, staff augmentation enables you to access expertise. When the project is over, the number of employees may be readily decreased.

You can expand your crew if a new project develops.


Staff Augmentation: Disadvantages


Technical Expertise

If you don't have the time to carefully review each candidate, your augmented staff could perform worse than you anticipated.

Re-hiring the worst egg can lead to a delay in the project. You should request portfolios and reviews to see whether the specialist can meet your company's objectives.


Miscommunication

Global outsourcing is one option. This indicates that there may be communication issues if the prospect you are thinking about doesn't speak your language.

If you don't comprehend the crucial instructions, you'll lose more time and wind up having to pay more money afterward.


Inefficient Workflows

While adopting outsourcing models, your workflow could suffer if you don't organize your work. To make sure that your procedures and processes perform well across all time zones and cultural obstacles, you may plan ahead.


Security Issues

As staff is added, security is a problem. If you don't engage with a reputable project outsourcing service provider, this is especially true.

Information leaking may be prevented by conducting regular security audits. Also, you should adhere to a security procedure, which includes getting NDAs signed by both the outsourcing firm and the expanded workforce.

Providing temporary access keys and accounts that can be used to rotate out when their engagement is over to external resources is a smart idea.


What Is The Difference Between Staff Augmentation & Outsourcing?

What Is The Difference Between Staff Augmentation & Outsourcing?

 

Although they are often used interchangeably, staff augmentation and outsourcing can be distinguished by a fine line.

These are the differences.


Efficiency

Traditional project-based outsourcing is the best option for large projects and established businesses when it comes to efficiency.

Smaller projects that require staff augmentation are often easier to manage, especially if you already have a few experts onsite.


Flexibility

Outsourcing and staff augmentation both offer flexibility.


Target

Outsourcing is the ideal option if getting results is your main goal. If you wish to have extra resources to handle an issue or satisfy a requirement, staff augmentation is more suitable.


Scalability

Staff augmentation can be scaled up to a higher level than traditional outsourcing. Aloa can also offer high-scalability outsourcing.


Control over the Team

You may have less control over your workers and resources if you choose traditional outsourcing. You may exert total control over how your resources are used by adding staff.

Aloa gives users unheard-of control over outsourcing and staff augmentation approaches.

Want More Information About Our Services? Talk to Our Consultants!


Wrapping up

A cost-effective staff augmentation is a viable option for urgent tasks that call for more professionals. As a result, the team is more effective, and the deadlines are more attainable.

With a large selection of qualified professionals at your disposal, you may pick with confidence.

Review the considerations given while selecting the appropriate model before deciding to use this method. Think about the advantages and disadvantages as well.

This will enable you to maximize the plan for your development team as well as your complete company. Most businesses can't just get into staff augmentation without some planning.