To understand what staff augmentation entails, let’s imagine being a business owner in 2024.
Now usually, your in-house IT staff can handle the day-to-day operations and client projects on their own just fine.
However, sometimes, sudden changes in client demands or project requirements can overwhelm the same IT team. They need an extra pair of hands temporarily with additional skills to add to their core expertise. That’s where staff augmentation may prove to be a game-changer.
For an organization in need of IT professionals to fulfill technology roles, IT staff augmentation is the way forward. It is a process of integrating temporary staff into your existing IT teams to help manage workload or upscale current skill set to improve organizational efficiency. This allows businesses to be more flexible and scale up or down their operations without the complexities and financial commitments of full-time hiring.
Still not convinced?
Let’s run the numbers game:
As of 2021, the Global IT staff augmentation expenditure reached 81.87 billion USD.
IT outsourcing market was estimated at 526.6 billion USD (as of 2021), and is projected to reach 682.3 billion by 2027.
Revenue generated from IT staff augmentation is expected to reach approx. $1.5 billion by 2025.
(Source: Medium, PWRTeams)
One thing is for sure. If your organization is struggling to navigate amidst fluctuating customer demands; or whether your existing project requires a wider skillset, then opting for IT staff augmentation services is a savvy business move.
But that’s just the tip of the iceberg.
If you’re considering outsourcing an IT agency to expand your tech capabilities, this article is for you. This comprehensive guide walks you through the whys and hows of staff augmentation (particularly in the IT sector). We also look at various staff augmentation models, benefits, potential roadblocks (?), and best practices; i.e. – the whole package!
Let the learning begin.
What is IT Staff Augmentation?
Simply put, IT staff augmentation is an effective hiring strategy that many companies in 2024 rely on to boost their existing IT competencies by onboarding external talent. This approach is especially utilized by companies to deliver complex projects by filling skill gaps without recruiting IT personnel on a fully-time contract.
When you hire dedicated developers from an outsourcing agency, you can utilize their talent for specific projects, meet project deadlines, and scale up or down with maximum ease. That way, choosing IT Outsourcing Services can be a highly cost-effective and flexible strategy to leverage specialized expertise to boost your IT team without bearing the costs and risks of traditional hiring.
IT Staff Augmentation: Use Cases:
The next logical step is to understand when team augmentation is truly needed. While it may sound an attractive proposition to hire a third-party agency to manage your entire IT assets, it may not be a suitable approach for all use cases. An organization should consider staff augmentation services to:
Bolster their existing IT team:
Even when enterprises house an existing software team, they can complement them by onboarding additional IT personnel. For instance, if you’re looking to launch a new product, and your existing team needs backup, then you could hire DevOps developer to augment their skills and ensure a timely, successful deployment.
Overcome major skill gaps:
When handling multiple projects simultaneously, a small-scale enterprise can be easily overwhelmed. The skill demands may vary, and so, it’s important to adapt on a project-specific level. That’s where investing in IT staff augmentation empowers companies to bridge skill gaps by leveraging specialized expertise.
Meet project deadlines:
Let’s be honest, full-time hiring is a long and tedious process. If you’re on a time crunch and are struggling to meet project deadlines, then opting for staff augmentation is the right move. By accessing a diverse pool of IT professionals, companies can quickly boost their tech proficiency and achieve timely project delivery.
Acquire short-term/temporary expertise:
The staff augmentation model is best suited for short-time projects that require highly specialized expertise. This approach is more cost-effective, with scope for flexibility and scalability than permanent onboarding. However, for long-term projects with ongoing deployment, choosing a traditional hiring model should suffice.
Address budget constraints:
Companies operating on a limited budget or looking to minimize project-related cost can easily outsource a third-party agency and leverage their vast talent pool for a fraction of the cost. For instance, you should hire eCommerce developer from India, etc., paying exclusively for what you need and how long you need it for.
Staff Augmentation v/s Managed Services – Key Differences:
Also Read – IT Staff Augmentation Vs Managed Services: Which Model is Perfect for Your Business?
Types of Staff Augmentation Models: –
Staff augmentation itself is a vast concept with distinct models that ultimately aim to boost business productivity and profitability. By choosing the right model, you can improve your bottom line and optimize in-house efficiency. Staff augmentation is generally divided into 5 different categories, namely –
On-site model:
Hiring IT professionals who can work on-site (i.e. from your office premises) is a huge bonus for organizations who rely on real-time communication for efficient operations. On-site staff augmentation allows businesses to stay agile and aligned with their ongoing project requirements.
Remote model:
An offshore staff augmentation model is for companies seeking IT resources from a different country (usually for cost-effectiveness) and are fine with developers working in different time-zones. This model provides the flexibility of working with a global talent pool of certified experts.
Project-specific model:
Experience a seamless project journey by entrusting a third-party agency to handle the entire project scope with utmost professionalism. From ideation to delivery, the team oversees the entire project lifecycle and offers pre-vetted resources as needed.
Team-specific model:
Need highly specialized expertise for an isolated project or industry? We recommend the team-specific model that allows you to onboard IT developers with expertise in specific domains (like IoT, Blockchain, AI, etc.) to fill any skill gaps within your existing teams.
Time-specific model:
Choose time-specific staff augmentation to meet your temporary or short-time project requirements with minimum fuss. By hiring IT experts for a set timeframe, companies can ensure timely and quality-oriented work. This model allows you to tap into top-notch skills without the obligation of permanent hiring.
IT Staff Augmentation Benefits: Why Choose It?
Most businesses see IT staff augmentation as an effective means to reduce recruitment costs. But that’s not all.
In truth, opting for IT Outsourcing Services offers a myriad of benefits, some of which you’ll be surprised to learn. Let’s discuss these advantages in more detail:
Access a wider talent pool:
With the recent advancements in AI and automation, businesses can no longer rely on in-house resources to cover the entire spectrum of emerging IT technologies. However, by embracing the staff augmentation model, they are no longer restricted by geographical barriers; the entire world is now a potential talent pool. By tapping into a vast network of IT gurus, businesses can bridge the skill gap and achieve success.
Forget the hassles of traditional recruitment:
Traditional recruitment, in addition to taking weeks (or months) also presents potential risks. Hiring offshore IT experts helps mitigate some of these risks while being a far more cost-effective strategy. Just remember to thoroughly assess the external team’s proficiency and project management skills before committing to a long-term arrangement.
An excellent avenue for cost-savings:
Money saved is money earned”. By working with a global IT agency, businesses can avoid financial investments associated with full-time recruitment (i.e. vacation leaves, insurance, office space, etc.). This money can then be spent on improving the core business, modernizing infrastructure, and transitioning from legacy systems.
Accelerated project delivery:
Projects with tight deadlines are easily fulfilled by acquiring top-notch staff augmentation services. By recruiting offshore IT experts, you can accelerate project timelines and ensure successful delivery. With the help of staff augmentation, you can quickly onboard top-notch engineers to your team, enabling businesses to excel in a digitally driven world.
Unmatched flexibility:
Staff augmentation provides the ability to scale up or down your dedicated staff based on latest projects requirements with ease. Hiring IT talent on a short-term basis offers flexibility, as businesses can adjust team size and core expertise at the end of each project lifecycle.
IT Staff Augmentation – What Are the Potential Roadblocks: –
As we can see, IT staff augmentation brings numerous benefits to organizations in 2024. But what are the potential limitations, or more precisely, key pointers that you must remember when embarking on this journey? Let’s find out:
Communication barriers:
Effective, real-time communication can be challenging when working with an offshore staff augmentation agency. Apart from the language barriers, working in different time zones can make communication more tedious.
Limited control:
By choosing IT outsourcing services, you are basically entrusting all your projects on a third-party agency. This lack of control might be a stumbling block for some companies, especially when working with an unknown entity.
Finding the right IT partner:
While staff augmentation provides access to a vast talent pool, choosing the right partner who fits your organization’s cultural and skillset gap can be challenging. Hence, make sure that the outsourcing agency has a track record of delivering projects relevant to your domain and skill gap.
Hiring Staff Augmentation Services – Best Practices:
No two organizations have the same IT needs. Hence, when looking for an IT staff augmentation agency, some crucial pointers must be kept in mind to choose the right tech partner. Here are the 6 key tips to follow:
Assess your IT needs:
Before shortlisting IT agencies, clearly define what IT skills, resources, and assets you are looking for. Also assess the project timeline, scope, and any specific certifications necessary based on your own in-house competencies.
“What’s the budget?”
Compare the IT agency’s unique pricing structure and hiring model (including hourly rates, fixed project fees, or monthly contracts). After you have a tentative budget in mind, conduct research to identify which IT agencies match your budget.
See what clients have to say:
Check online reviews and testimonials from old clients to gauge the IT company’s performance and commitment to client success. Gathering client feedback is crucial in understanding what caliber of talent you’re working with.
Follow proper onboarding protocols:
Ask about the process used by the IT agency to screen and shortlist candidates. Make sure that they have a comprehensive process for finding, interviewing, and approving IT personnel that match your business requirements.
Negotiate contractual terms beforehand:
After shortlisting the IT agency, discuss contractual terms and conditions that work best for both parties. For instance, when looking to hire mobile app developer, you must clearly state project goals, timelines, budget, and add-ons to avoid any hidden charges or last-minute bottlenecks.
Prioritize communication and support:
See what communication channels the staff augmentation agency utilizes. A reputable firm will ensure timely updates throughout the project cycle, resolving issues in real-time that may arise.
Frequently Asked Questions:
Q1. What does staff augmentation mean?
Staff Augmentation is a widely used practice in the IT industry. It involves collaborating with external professionals to assist in completing a specific task or pipeline. These certified professionals can work both independently or as part of an in-house team, for either a short or extended period. The aim of Staff Augmentation is to provide businesses with additional resources to fill skill gaps and increase productivity. It is a flexible approach that allows organizations to scale up or down as their priorities shift.
Q2. List the benefits of acquiring IT staff augmentation services.
The key benefits of IT staff augmentation services include, but aren’t limited to –
- No upfront investment is required, from recruitment to training the hired IT staff.
- Companies don’t have to spend time and money on recruitment, as IT specialists can get started on the project from the get-go.
- Companies have access to a worldwide talent pool to choose from, ensuring cost-effectiveness and compatibility.
- Ensure a smooth and faster onboarding process.
- Ability to scale up or down based on the current skills requirements.
Q3. What is the difference between IT staff augmentation and IT outsourcing services?
IT staff augmentation is a popular outsourcing model that enterprises turn to when looking for specialized expertise for their various project requirements. This strategy allows organizations to tap into the necessary skills and resources without the commitment of hiring permanent staff, making it a highly cost-effective solution. Therefore, IT staff augmentation is a sub-set of a company’s overall project outsourcing offerings.
Q4. How can I avail IT staff augmentation services?
IT staff augmentation services are readily accessible in 2024 since many companies rely on third-party agencies. Two common models include – engaging a recruitment agency or partnering with a dedicated software developer. Collaborating with a recruitment agency is particularly useful if the agency has a good grasp of the core technologies and business domain. However, hiring a dedicated software developer is a more flexible and cost-effective approach.
Final Thoughts:
Recruiting top-notch talent for your organization can be a daunting and time-consuming task. Additionally, the result of outsourcing personnel from an agency can be unpredictable. While staff augmentation is an effective solution that can provide you with skilled resources without any long-term commitments, finding the partner best suited to your organization is a different animal altogether. And that’s where we come in!
As a top-tier staff augmentation provider, we can offer your business a competitive advantage, while giving you more control over projects. To learn more about how our agile IT staff augmentation solutions can help transform your vision into reality, feel free to contact us today.