Staff Augmentation Vs Project Outsourcing

It integrates outside workers as contractors or temporary employees for a defined period of time, typically revolving around a specific project need. Skill-based staff augmentation is used when moderate skills are required for a company or project. These skills can include administration skills , marketing and communication skills , and customer service workers. This can be particularly useful for companies that have peak demand times throughout the year. Sometimes this can mean strengthening a current team with one or two hired workers that bring a new set of skills to an existing team. Or in the case of large projects or company expansion, hiring multiple workers with niche skills.

If you’d like to know more about how we can help you out with staff augmentation, do reach out today and we’ll be in touch. Need to quickly increase the number of people working on the project? Staff augmentation is the easiest way to bring in more people who are qualified to work on the project. Since they work remotely, they can be anywhere in the world while they work on what you need them to. Working directly with freelancers always has the benefit of costing less. However, the question is whether or not your savings are worth the administrative burden.

Some hiring managers believe they can circumvent the cost of paying benefits for a full-time employee by hiring augmented staff instead. This is misguided and would be a good reason not to hire augmented staff. In the end, the staffing provider is paying benefit costs, which in turn get factored into the rate quoted to an organization. This misunderstanding can actually lead to paying more out of pocket for augmented staff when full-time employment would have been a more suitable solution. The high productivity is a distinctive feature of staff aug, meaning the team is totally focused on your project, dedicating their time and effort to it.

They immerse themselves in your project, maintaining your company culture and working in line with your strategic goals. The benefits of staff augmentation include having access to a disposable staff quickly, and one that likely won’t require much/any training. They can effectively jump on a project with a full understanding of what’s required of them and the end goal/s of the company. Another pro of staff augmentation is it can act as a ‘trial’ run for potential full-time, permanent workers.

If you aren’t sure which outsourcing model would be suitable for your project, the best thing to do is to consult with your vendor. Describe your project, requirements, timeline, and budget constraints. And don’t forget to mention whether you have an in-house team and the flexibility you’ll require. After reviewing the criteria above, it is critical to emphasize that every software development project is unique. That’s why vendors offer several models that fit the needs of different projects. The IT vendor will find the specialists required based on experience and/or previous work on similar projects.

Your Intellectual Property rights are secured as the developers are dedicated to your project from the very beginning. Choose Uptech as your development partner that delivers on time and within budget. In today’s unpredictable and ever-changing corporate environment, the demand for specialized IT services grows every day.

How Could This Hiring Model Help Your Company?

Outsourcing surely eases the hiring job providing the most common models, staff augmentation, and project-based outsourcing. If you are looking for a proficient candidate in a specific stream, you can go with the staff augmentation model to save your time and emerge with a suitable and best professional. You just need to connect with a vendor, review the CVs of the candidates, and interview them. Such a staff and resource augmentation approach performs perfectly and suits the best to short-term projects, as they demand less time to finish. Flexible hiring permits brands to expand their operations on trial with no investment loss or risk of failure or full-time workforce.

For those who already understand how the arrangement works, the next logical step is to make sure a staff augmentation agreement is put in place. Remember that, while these people are experts at what they do, they will be exposed to confidential business data. Yes, they will be paid to augment and protect you, but every business leader knows that certain information is best exposed to a business’s core team only. You can always choose the dedicated team model or outsourcing to obtain IT specialists . Still, if your project has some nuances, the staff augmentation model might not be the best option for you. As stated by Harvard Business Review, the process of hunting candidates must be completely confidential.

Short

Alternatively, staff augmentation means your team is entirely focused on your project. With this approach, your augmented team’s efficiency can be higher than outsourcing teams’ efficiency since project-based outsourcing teams may work on several projects simultaneously. A need to augment the development team often arises when your project requires more hands and heads, but you don’t have enough time or budget to hire full-time specialists. Outstaffing several specialists can be more affordable than assembling an in-house team.

However, time differences remain one of the most common communication-related issues when augmenting the dev team. Our reliance on technologies for everyday tasks, from grocery shopping to online booking, has increased due to the pandemic and lockdowns. In turn, this has led to high demand for software engineers to create custom software solutions. Let’s suppose you already have a team on your project in your local office.

• To hire middle or senior-level developers or specialists in the software development space, you choose to conduct in-house recruitment, which sucks your time.
• Steady growth requires an influx of new and increasingly robust projects, but it can be hard to keep up with demands at current staffing levels.
• In short, you enjoy all the benefits of accessing the talent you need while paying a flat rate to the agency.
• Having non-permanent workers from a trusted agency allows them to focus on the management of the project, without worrying about staffing.
• By choosing IT staff augmentation over project outsourcing, you can also avoid certain geography issues.

The model is results-centric, meaning the responsibility for achieving results lies with the outsourcer. As such, the commitment is usually expressed as “service levels,” which describes precisely what results the outsource company is responsible for. The price is tied to service levels where appropriate, so the cost is transparent from the get-go. For these reasons, outsourcing tends to be a good option if your main driver is to minimize costs and project risk.

Who Uses Staff Augmentation?

The practice isn’t necessarily modern—it began essentially when administrators were borrowed across organizational borders to fill roles temporarily due to vacation, illnesses, and the like. Today, contingent work manifests itself in many working models, the most common being staff augmentation. The specialists we provide have good communication skills and an Upper-Intermediate to Advanced English level. They’re usually middle or senior-level engineers or team leads if there’s a need to oversee the team’s work. With team augmentation, you may hire as many IT experts as you need, and the augmented team is simple to scale up and down. You may start with two iOS developers, two QA engineers, and a UI/UX designer but only work with iOS or Android developers afterward.

IT service providers may suggest a variety of outsourcing engagement models, such as staff augmentation or project outsourcing, or even managed services, as ways to bring in outside talent. In this case, staff augmentation services are maintained by an IT partner, who provides outstaff team official employment, insurance and takes care of taxes for the remote staff. This is a service where the provider will augment the client’s workforce with skilled persons. The Client is still responsible to manage the persons and the work which they will be completing.

For companies that have a strong internal IT team and who have reliable, dependable management, staff augmentation may be a good option. Companies often choose this solution when they need to maintain a certain level of control over the project. However, for companies whose IT team already manages a full load and who need a project done quickly and with reduced internal management, IT project outsourcing may be the best bet. Augmenting your staff with trained professionals at the height of their careers allows you to assign projects and tasks with confidence. Experienced mid-career professionals are not temps or interns and won’t need much training or assistance. Simply assign projects and tasks as needed and an augmented staffer or team will be able to deliver the results you need in a timely manner.

These scenarios are just three examples where staff augmentation can be a highly effective hiring solution for businesses. But there are many other times businesses can also benefit from augmenting staff. It is, however, mainly due to a lack of or limited access to resources. If you’re ready to go over your staff augmentation agreement, let’s re-visit how staff augmentation, in general, is more than just a good idea for start-ups and thriving businesses.

It serves as a short-term business model solution to certain focuses. It isn’t designed to be a permanent answer although what starts off as short-term can often become long-term. Staff augmentation services are skilled at communicating with an existing IT company and narrowing down exactly who/what is needed to achieve a smooth growth period, or complete a certain task. However, in the Resource Augmentation model, the outsourcing company takes on the employer and takes care of regular duties, including payroll, employee benefits, taxes, and many more.

Before hiring, it is essential to identify the gaps in terms of skills. This helps to avoid doubling up on some skills while the ones needing attention are left unattended. Identifying skills also assist in hiring the very best candidates for the job. While https://globalcloudteam.com/ a business is looking for the best permanent team to hire, staff augmentation acts as a bridge. Inform yourself about the service fee, terms & conditions, privacy, the company’s industry experience, and any other information you can find on the internet.

You Need Specific Skills

In spite of having a couple of contradictions, I will still agree and prefer for staff augmentation. If you are n employer and seek to have high quality staffs then staff augmentation will be very important to you. When it comes to managing a contingent workforce, most companies report unsatisfactory processes . One reason for this could be attributed to misunderstandings about context.

Maintain Oversight And Control

But maintaining an in-house high-skilled IT staff can be costly since the IT needs of an organization can change constantly in today’s dynamic business environment. Contact us to learn more about our staff augmentation services, and our experts will help you find the right solution for your business. Every time you need to hire a new team member, you have to go through all stages of the hiring process. For staff augmentation to offer lower costs, providers leverage resources from countries that have a lower cost of living. For this reason, staff provided will be working remotely, which may not be as accessible versus someone working in the same office.

Easy And Flexible Offshore It Staff Augmentation Services

Due to a well-established process of entering staff augmentation deals, ScienceSoft effectively works with urgent requests where fast provision of the resources is critical for the project progress. Project-based consulting is almost exactly the opposite of staff augmentation. While you still get the same qualified developers working on whatever project you desire, there’s no need for HR, IT, or any other departments to get involved. Since the developers will work from their “home base,” there’s no need to provide desks or equipment. According to the non-profit tech association CompTIA, the IT industry is set to hit $5 trillion in 2020.

One possible advantage of this approach is that it may leverage existing resources as well as utilize outsourced services and contract workers. When you are considering staff augmentation, the most important thing is to determine what you are trying to accomplish and what is most important. For example, if you are looking for an expert in machine learning (a highly in-demand skill today), prioritizing cost will be unrealistic. Likewise, if you need 100 people to do a task that can be easily trained, you won’t want to hire based on a high level of skill. With a broad range of staff augmentation models available to organizations, it’s critical to weigh the pros and cons of each arrangement before selecting. Since no two companies are exactly alike, it’s crucial to determine what IT outsourcing model works best for your company’s unique needs.

You have a mature business with an extensive team focused on your project. Suddenly, an idea comes to your mind, and you decide to launch a side project. However, you realize there is a shortage of resources in your talent market. You do not have to pay additional costs for office rent, social benefits, equipment purchase, etc. Thus, with much smaller expenses, you can hire more specialists that would match your requirements. As a Business Development Manager, I consult many of my clients on which outsource model to choose.

It can’t be expected of them to jump right in and hit the ground running. So even though staff augmentation can enable rapid scaling of development teams, a certain amount of time must be budgeted for onboarding. It’s not something that’s a must for every company to do on their own. Many actually bring in dedicated project managers as part of their staff augmentation exercise so that there’s always a point person to manage the process. An easier way of going about this is to get in touch with your staff augmentation vendor and discuss the project requirements with them.

Software Development For Life Science Companies

Keeping a full-time employee with an annual salary of $100,000, for example, costs employers worldwide an average of 23%. This includes costs for benefits like matching, health insurance, 401K, and ongoing training. Keeping these costs in mind, the financial benefit of contracting with augmented staff is quite reasonable and cost-effective.

Augmented staffing allows you to engage a professional when you need one – without the long term, costly commitment. ScaleTech Consulting offers scalable, tailored staff augmentation services leveraging an expert network both within and adjacent to the IT industry. We value sustainable growth from the top-down, identifying ideal solutions to your problems rather than the lowest common denominators. Above all, we strive to find the best fit for your organization’s culture. There may also be times when people with a certain skill set are required.