Nowadays, staff augmentation is quite popular. Cost-cutting, greater operational efficiency, better customer service, access to new technology, and flexibility are the main reasons why organizations outsource their business responsibilities.
According to data, the staffing business was worth $497 billion in 2019.
IT talent recruiting accounted for $69 billion in worldwide temporary employment, making it the market's largest staffing category (37%).
Companies may maintain business continuity and jump on the innovation bandwagon sooner by outsourcing IT services. CEOs also want their software development teams to be able to scale up and down as needed, taking into account current project demands, budget, and cash flow. As a result, if you want to flourish in a fast-paced IT environment, you'll need a strong team and a well-thought-out plan geared to your company's objectives.
Contacting a reputable software development firm is a common strategy to achieve excellent outcomes while reducing expenses and increasing bottom and top-line growth. With a projected worldwide market size of $85.6 billion for outsourced application development services, staff augmentation may be the most cost-effective method.
What is Staff Augmentation?
Staff augmentation is the temporary deployment of external staff with varied skills to increase the capacity of a firm.
Read more: What is IT Staff Augmentation?
The hiring of remote teams and individuals to cover gaps in existing projects in accordance with current business objectives is part of this outsourcing strategy. Due to a scarcity of in-house specialists, companies hire third-party workers for short or long-term collaboration.
Compared to the earlier concentration on only back-office operations, outsourcing has become pervasive in all facets of a business, according to a Deloitte Global Outsourcing Review. Large organizations, for example, use outsourced teams to deploy RPA (robotic process automation). Smaller organizations, on the other hand, prefer staff outsourcing for a variety of reasons, including increased efficiency, competence, flexibility, and cost savings:
Augmented Staff Types
There are various main forms of staff augmentation, which differ depending on the length of the collaboration and the talents necessary. Staff augmentation can include the following models:
- Hiring a Distributed Team on a Temporary Basis
This strategy is suitable for businesses that require developers or other expertise on a short-term basis. Recruiting for projects that require specialists with high technical skills can take weeks or even months. Working with a trusted IT staff provider can help bridge the missing gap in a matter of days.
- Hiring a Distributed Team on a Long-Term Basis
This method allows businesses to hire a technical and digital team of specialists for as long as they require it. As a result of their years of service, these teams frequently get integrated into the client's company. Long-term collaboration enables hiring experts with extensive experience and soft skills.
- Hiring a Team without Specific Skill Sets
Businesses hire dedicated teams or employees through staff augmentation to fulfill jobs that don't require a specific expertise or skill set.
- Hiring a Skill-based Team
When a company needs specialists with certain mid-level talents, it hires a dedicated team or distinct personnel.
- Hiring Highly Qualified Experts
When the organization needs high-level specialists to do certain duties, it hires a specialized team or distinct individuals.
7 Ways Staff Augmentation Can Boost Your Business
Outsourcing technical expertise has both advantages and disadvantages. Faster execution times, access to a worldwide talent pool, scalability when necessary, cost-effectiveness, and cooperation with highly trained developers are just a few of the advantages. Security and privacy problems, governance challenges, and other issues are among the disadvantages.
1. Easier Access to Talent
You'll have access to a worldwide talent pool.
Previously, businesses relied on the personnel who were available in their local market. As a result, due to a scarcity of talent, they frequently had to understate their needs while hiring new employees. The situation has now altered as a result of the possibility to outsource services. Employers all throughout the world can benefit from outsourcing. They can recruit workers from any nation as long as they match their requirements.
In economies and markets that are witnessing a fast pace of digital transformation like Saudi Arabia, finding qualified talent with deep expertise can be really challenging, expensive, and has hindered the ability of businesses in Saudi Arabia to deliver on time.
Being able to access a global or regional database of highly qualified experts in software development is a major competitive advantage for such businesses.
2. Superior Collaboration
According to a study by Salesforce, insufficient cooperation or poor communication are the top causes of failing initiatives, according to over 90% of employees and C-suite executives. According to another study, 70% of failed teams had a lack of contact among team members.
Unlike freelancers, specialists sourced from IT staff augmentation providers are guaranteed to be a fit for your organizational and team culture because they are highly trained in soft skills, communication tools, reporting, and are vetted to be sociable and willing to contribute proactively.
3. Smarter Project Management
Hiring digital and technical expertise that have experience using essential project management tools.
Distributed software development teams use a variety of project management tools to improve project performance and transparency, detect weak areas, and quickly resolve problems. Hiring a team or specialists through staff augmentation means you will hire professionals comfortable using all the major project management tools in the market.
Today's AI-powered project management software can handle scheduling, reminders, and follow-ups without the need for human intervention. This helps staff save time on other activities by ensuring that nothing is neglected. These smart technologies combine with Slack and JIRA to make workflow more efficient.
PMs (project managers) spend more than half of their time on administrative chores. AI bots can take over less valuable, mundane, and manual tasks, allowing PMs to focus on the key procedures of their management responsibilities.
4. Flexibility to Adapt
Staff augmentation helps businesses save time and money by eliminating the need to recruit, interview, and hire a new specialist. Furthermore, like with recruiting, terminating a worker necessitates a significant amount of resources.
IT staff outsourcing is available from custom software development organizations on a temporary or permanent basis. As a result, clients don't have to bother about finding and recruiting employees because the vendor takes care of everything.
Distributed teams, on the other hand, provide flexibility during the development process. Agile projects are well known to help businesses adapt to changes mid project development faster than traditional software development models and we make it a point at Sitech to always provide talent that are experienced or certified in Agile project delivery.
According to a poll conducted, Agile projects are more likely to succeed:
When dealing with outsourced employees, both sides must frequently establish common ground in order to resolve work issues.
Unlike freelancers, staff augmentation ensures you hire project managers, analysts, designers, and software engineers that have relevant experience working with in-house teams. Such an advantage will make your workflow management easier.
5. Save Hiring Costs
Any outsourcing operation helps a company-client decrease expenses at several levels. The first economy eliminates the requirement for the distributed team to pay taxes, vacation days, maternity and paternity leaves, and sick leave. Second, you save money on hiring and legal fees. If you deal with a staff augmentation provider on an all-inclusive basis, you can rest assured that you will receive all of the aforementioned services.
When it comes to remuneration, a recruited Ukrainian software developer will cost three to four times less than an American or twice as much as a Jordanian. This is because their salaries already cover all taxes, benefits, and additional costs such as office space, workspace, and other assets.
The ability to recruit from a diverse and global pool of digital talent gives you an essential advantage: being able to hire tailored talent at managed cost.
6. Save Training Costs
New technologies are disrupting the market almost everyday and your customers are adopting the "new normal" faster than ever before.
Digital transformation is not a one-time event and the real challenge for businesses here is that they should build an IT infrastructure and business model that allows them to keep up the pace with the changing demands of their markets.
This includes having access to experts and professionals in new technologies essential to your business growth and success. However, training workshops and certifications are expensive - restricting the ability of many businesses to adopt brand new technologies and capabilities.
Outsourcing your software talent recruitment and hiring to staff augmentation providers like Sitech saves you money by allowing your to hire top experts with in-depth knowledge of new technologies like AI, machine learning, natural language processing, deep learning, virtual and augmented reality.
Staff augmentations gives you immediate access to such technologies at managed cost without the need to waste time and money on training talent that is difficult to retain.
7. Continuous Scalability
Businesses that have their own hardware, software, servers, and other IT resources are responsible for everything.
If a business has to scale up or down, they must make monthly payments, maintain and repair equipment, run documents, and acquire or remove new resources. Clients that work with an outsourced software development business frequently don't take on these obligations since they are preoccupied with other jobs.
Hire Certified Software Engineers with Sitech
Hopefully, these pointers will assist you in finding the ideal partner for collaboration. As you may have guessed, enhancing business skills by enlisting the help of third-party employees and service providers may be quite advantageous. It enables you to:
- Save both time and money
- Access advanced expertise in project and product management
- Communicate effectively (remotely or otherwise)
- Access emerging technologies
- Find and recruit talent easier
- Scale and manage resources on-demand
Sitech has 14 years of expertise in the IT outsourcing industry and has built a reputation for design-driven digital product development.
From product discovery to product development, we offer a wide range of services as part of holistic package that also includes post-launch services such as DevOps and Cloud Managed Services.
To learn more about our services and to schedule a consultation, please contact one of our representatives via our website here. We ensure a seamless and productive relationship that produces the intended outcomes on time and within budget.