About 54% of businesses worldwide are experiencing a talent shortage. In fact, compared to a decade ago, it has more than doubled. According to Bloomberg, HR managers in 36 of 44 nations are having difficulty finding and attracting talented personnel to their teams.
Saudi Arabia is in dire need of tech talent to meet the surge in digital transformation happening in their market , and this is why, especially in the case of IT services, outsourcing or staff augmentation is extremely beneficial.
We're going to focus on IT staff augmentation today. We'll look at when and why companies should use staff augmentation services. Let's begin by defining the term "staff augmentation."
Need to reduce your software hiring costs? Choose IT Staff Augmentation in Eastern Europe or the MENA regions. Contact Us.
What is Staff Augmentation, and how does it work?
One of the outsourcing techniques that allows for hiring and maintaining augmented teams globally is staff augmentation.
There is one significant difference between staff augmentation and outsourcing.
The outsourcing approach requires the vendor to deliver a mobile or web app at a set fee, whereas staff augmentation offers developers for a set price per hour of work. For most businesses throughout the world, recruiting and hiring in-house personnel isn't the sole choice.
The organization can hire staff for a specific project by following the standards of IT recruitment. If you're making an app, for example, you'll need five devs and three UX designers, but you only have one developer and one designer.
Finding and hiring four in-house engineers and two UX designers could take up to two months, delaying your app's debut and costing you extra time and money.
You can get all the people you need in a few weeks if you use IT staffing businesses. IT hiring also speeds up the development and launch of your app. Furthermore, once the project is completed, you do not need to fire the developers who worked on your app development.
Read more: What is IT Staff Augmentation?
Why Should Your Business Choose IT Staff Augmentation?
IT staff augmentation is a simple approach to expand and strengthen your in-house development team.
Staff augmentation has various advantages for companies of all types and sizes. It provides unrivaled flexibility that your in-house team cannot match.
IT staff augmentation eliminates the need for recruiting and hiring. As a result, you won't have to deal with any paperwork or official registration. It's also difficult to fire your employees. When it comes to short-term initiatives, IT staffing services are far superior.
Companies can benefit from staff augmentation in a variety of situations, including:
- Recruit more staff: When a momentary surge in your project or regular work is required.
- Fill gaps in your workforce: When it's impossible to acquire local developers for your in-house team, staff augmentation services come in handy.
- Obtain specialized skills and knowledge: When a specialized developer is required for a short-term project. When you can't locate a Unity developer for your in-house team, for example.
- Increase your flexibility: You can grow your team whenever you want, without having to recruit or onboard new members.
Outsourcing employees is getting increasingly popular.
Companies can tackle a wide range of staffing issues by utilizing staff augmentation, including:
- Hiring in-house experts is more costly.
- Recruitment of new employees involves additional time and effort.
- Today's employee turnover rate is increasing.
- The talent pool in the area is extremely small.
- Top local experts are frequently more expensive than the budget allows.
Unlike outsourcing firms, staff augmentation firms do not supervise their employees. When it comes to staffing, the end client is in charge of the employees. Tech staff augmentation is similar to having extra developers available whenever you need them for short- or long-term initiatives.
Need more information about staff augmentation with Sitech? Contact us, and we’ll power up your in-house teams with our experienced developers.
What are the Benefits of IT Staff Augmentation?
The major advantages and disadvantages of IT staff augmentation have already been highlighted in this article.
It's now time to figure out how staff augmentation can help you. The advantages are closely linked to the benefits, which include:
1. You Can Hire Software Developers From Around the World
Companies used to be reliant on a local labor market until outsourcing became popular. As a result, they frequently had to lower their benchmarks and indicators in order to hire the needed specialist due to a lack in the local market.
Staff augmentation services are now available all around the world. Companies can also leverage a worldwide talent pool rather than a local labor market. They can hire individuals from all around the world to locate the specific expert they require for their project.
2. You Can Hire Software Developers Anytime You Want
Recruiting and recruiting an internal employee is a time-consuming and expensive process. Your HR department will find and hire specialists, screen and interview candidates, negotiate employment terms, and handle all paperwork.
Additionally, by working with specialized IT staff augmentation service providers like Sitech, your HR department may focus on more pressing issues. IT employment and recruiting through IT staffing firms lets you escape the headaches of legal agreements and paperwork.
3. You Can Build Your Apps and Digital Products at Optimized Cost
On many levels, every sort of outsourcing can cut project costs.
When you use staff augmentation, you don't have to pay for vacations, maternity leaves, or sick leaves. You also won't have to deal with legal or recruitment difficulties. The vendor, who charges a premium for their all-in-one service bundle, bears all of the costs associated with the hiring process.
4. You Don't Have to Spend Money on Training Developers
Along with saving money on recruitment and legal fees, you can also save money on training.
As an employer, you must keep your developers up to date on the latest technologies and trends, which necessitates ongoing training. When you use staff augmentation, however, the vendor is responsible for employee training.
5. Hassle-Free Recruitment. No Legal or Management Issues.
The final but not least benefit is all-around administrative help. Companies that find and hire their own personnel must manage their employees on a daily basis and supply them with everything they need, including equipment and software. Payroll, bookkeeping, insurance, legal concerns, team building, and recreational activities are just a few examples.
That's a lot of stuff to take care of.
When you work with a tech staffing agency, on the other hand, you can delegate all of the usual responsibilities to the vendor and focus on your essential business demands. Isn't it fantastically convenient?
However, there are several disadvantages to consider when selecting an outsourcing model for your company. Don't forget to read the section below about the benefits and drawbacks of staff augmentation.
Now that you've learned what staff augmentation is, it's time to learn about the many forms. You can use many sorts of staff augmentation to meet your business demands. Let's see how master vendor staffing differs from standard staffing and what other possibilities are available.
Staff Augmentation Model Types
Depending on the business field, IT staffing takes many different shapes and forms. But how can you pick the correct staffing strategy for your company? Most businesses don't stick to one model; instead, they mix and match providers to meet their specific demands.
When it comes to staffing, the most important thing to consider is what you want to obtain and do, as well as what is most vital.
If you're looking for an expert in artificial intelligence or machine learning, for example, emphasizing cost is impractical. You must prioritize a skill set essential for your project in this case.
There are plenty of staff augmentation businesses and models to choose from, but knowing what you want to achieve and weighing all the benefits and drawbacks is critical before selecting a staff outsourcing strategy.
What are the Pros and Cons of Staff Augmentation?
Staff augmentation, like any other outsourcing model, has advantages and disadvantages. Let's look at how staff augmentation can help your company.
The Pros of Staff Augmentation
1. Gain Access to a Wider Pool of Talent
You won't need to hire local developers if you outsource. You gain access to a global pool of talent.
This makes it possible to hire talented coders from all over the world. You can recruit top developers from the United States, Germany, Eastern Europe, or the Philippines no matter where you are. Additionally, recruiting workers from Eastern Europe allows you to save money while still receiving top-notch mobile and Web app developers for your company.
2. Superior Ability to Adapt
For any project, you can hire as many experts as you require. Both long-term and short-term projects can benefit from staff outsourcing. It allows you to easily scale up or down as needed. Staff augmentation gives you unrivaled flexibility while avoiding the hassles of recruiting and other legal difficulties.
3. Optimize Direct and Indirect Recruitment Costs
You can save money on hiring and office renting by using IT staffing. Furthermore, as compared to your local specialists, developers from Eastern Europe, the Philippines, or India charge less.
When compared to producing an app with US-based developers, developing an app with Eastern European developers will save you roughly 45 percent of your budget. In both circumstances, the code quality will be exceptional.
4. No Need To Train Your Outsourced Staff
You don't have to invest time or money on training your employees if you choose a staff augmentation approach. You receive fully qualified programmers with the necessary skills and knowledge.
Developers who work for IT outsourcing organizations are typically multi-trained. Unlike in-house teams, they deal with a variety of technologies and app kinds.
Such programmers are well-versed in new technologies and frameworks. So, is it preferable to invest hundreds of hours and thousands of dollars on training a few in-house developers or to hire fully-trained developers?
5. Complete Administrative Support
Bills and payroll are usually handled by the staff augmentation service provider. You should concentrate on your business, and your vendor will handle the rest. As a result, you have more time and resources to focus on your key business objectives. That is unquestionably a win-win situation.
The Cons of Staff Augmentation
1. Management Issues
Integrating your remote and in-house employees is a time-consuming procedure that takes some effort. The integration procedure would be lot easier if you work with a qualified IT staffing service. Because of our 14 years of expertise, we know how to streamline the integration process and make it simple for both our developers and your in-house staff.
2. Security Risks
The expanded personnel has access to your personal information, which might lead to data leaks and other issues. You must sign an NDA and secure your business data in order to keep your information safe. Even if you believe your staff do not have access to secret information, it is best to protect it with an NDA.
However, NDAs aren't the only issue to contend with. Make sure the agency you're working with has strict security rules in place, especially when it comes to server placement and data storage.
3. Communication Issues
Communication between your in-house team and remote developers might be hampered by language hurdles and time variances. You obtain a convenient location with overlapping business hours when you outsource to Eastern Europe. Our developers speak English at Sitech, so you won't have to worry about language problems.
4. Process Inefficiency
It's difficult to establish effective collaboration with your remote team, especially if you don't know how to do it. We do, however, know how to communicate and collaborate with our remote developers. We'll help you design effective operations while supplementing developers with Sitech.
How Does Staff Augmentation Work?
IT staffing works with businesses that have their own IT departments. When a corporation requires additional expertise, it can use staff augmentation to obtain the necessary personnel.
The staff augmentation process flow typically includes the following steps:
Business analysis and defining your outsourcing goals are the initial steps toward staff augmentation. It assists you in determining which specialists you will require to meet your business objectives on time and on budget.
2. Talent Sourcing
Recruiters look for developers who match your needs, interview them, and present you with the best prospects for you to assess and approve. You are free to interview as many people as you wish. By carefully interviewing candidates, you can ensure that they are the best fit for your company's needs.
You can onboard your new team member while an IT staffing firm handles any legal difficulties. Now is the time to spell out all of your tasks and responsibilities. Otherwise, there may be a lot of ambiguity. Remember to hold Q&A sessions with your new hires.
Staffing firms that provide ongoing support never abandon their employees. In most cases, an allocated HR manager or account manager works with increased employees and assists in the development of a productive and effective partnership.
When Should Your Business Use Staff Augmentation?
Before diving into the world of IT staff augmentation services, here are 3 scenarios to consider:
1. The Duration of Your Software Project
Staff augmentation can be a valuable asset to your organization, allowing you to meet business demands more easily and quickly. However, it is not a suitable option for every situation. Short-term projects benefit from staff augmentation. It's ideal for tasks lasting three to twelve months.
If your project will run more than a year, you should consider another outsourcing model, such as Managed Software Teams.
2. The Specialized Set of Technical Skills Needed
It's an important consideration. Rare specialists are difficult to come by in most local labor markets. Alternatively, they could cost you an arm and a leg. As a result, an increasing number of businesses are recruiting remote workers to fill the void left by a shortage of local experts.
When you don't have time to find and hire remote workers, you should use a technology recruiting business to supplement your in-house staff with a few developers.
3. The Cost of Your Project Development
Locals' hourly rates are significantly higher than those in Jordan, for example.
The staff augmentation service provider covers administrative and management costs, such as office space, workstations, and training, under the staff augmentation model. Furthermore, you must pay a set cost based on the quantity of people required for your project.
Staff augmentation enables for time and cost savings. You can focus on your major business goals while the vendor handles everyday personnel management chores. Isn't that a win-win situation?
Software Outsourcing or Staff Augmentation?
Staff augmentation is a powerful strategy that businesses can use to boost flexibility and respond to changing business needs. It can be applied not only to IT needs, but also to other industries.
Software Outsourcing vs Staff Augmentation
The most obvious distinction between staff outsourcing and software outsourcing is the level of control you offer the vendor. Only the developer required for the project is provided as part of the staff augmentation, and everything else is under your control. Working with software outsourcing service providers gives them full control over your project.
As a result, a managed service model necessitates a considerably higher level of delegation, and it could be an excellent alternative for businesses looking to optimize their resources and focus on their primary business objectives.
Furthermore, managed service companies have developers on staff, so you won't have to wait for someone to be hired. It also means that they can begin working on your project immediately after signing a contract.
Freelancers vs Staff Augmentation
Hiring a freelancer means you will be accountable for all the hassle that comes along with him/her - payroll, management, and communication. Have you run out of time to address all of these topics? Then select the option for staff augmentation.
Freelancers, on the other hand, do not collect additional costs. They bill based on the amount of work completed or the number of hours worked.
Working with freelancers appears to be less expensive, but it takes longer than hiring staff augmentation services - also the quality of work is never up to the standard or at the very least cannot be guaranteed.
Staff Augmentation: 3 Things You Should Know
Staff augmentation provides both benefits and drawbacks, but you should learn more about the specifics. Let's look at three things to think about while working with IT staffing companies:
1. Secure Your Intellectual Property
You must ensure the safety of your intellectual property.
That is why you should sign a non-disclosure agreement (NDA) with your staffing agency. Remember that your remote engineers are part of both your remote team and full-time workers. Being a full-time employee also means having access to confidential information, so it's critical to make sure they don't misuse it.
Your safety is our primary priority at Sitech. Prior to delivering staff augmentation services, we'll go over everything and sign an NDA to protect all of your personal information.
2. Staff Augmentation Vendors are Still Your Outsourced Staff Employers
Regardless of whether developers work for you and become part of your in-house team, the outsourcing provider remains their primary employer. As a result, you must address areas of responsibility and agree on specific working conditions, such as vacations, amount of days off, and so on.
3. Transparency of Payments
Before signing the contract with your outsourcing provider, you should discuss and clarify any payment difficulties. The outsourcing firm should, in theory, charge a set monthly rate for each professional it offers.
Staff Augmentation with Sitech
IT staffing is becoming the new standard for businesses around the world. You can now add top programming expertise from anywhere in the world to your IT team. You may expand your workforce while avoiding the costs of hiring and onboarding using staff augmentation services.
Sitech's IT staffing and staff augmentation services can provide a key skill set for your company or IT project. We'll support your app development process by filling in the gaps in your IT team.
Your in-house developers will benefit from the extra heads and hands provided by our flexible tech staffing options.
To strengthen your in-house staff, contact Sitech.