What is Staff Augmentation? Why do you need it?
There are many ways to encourage your team to be more productive—pay raises, extra days off, team building, and more. However, these methods do not work when your team is overloaded with tasks and cannot focus well on all business processes in your company. At such a time, companies are looking for outside help. That’s when the staff augmentation service can really help.
This model allows businesses to quickly bridge gaps in their current projects with the help of skilled professionals. IT staff augmentation companies offer highly skilled employees such as software developers, quality assurance engineers, project managers, system administrators, system and business analysts, designers, DevOps specialists, and others.
It should be noted that personnel augmentation is not always a solution for personnel optimization but is often necessary! Suppose the company does not have the technical or other ability to minimize labor processes by fitting them to the existing staff. In that case, there is no other choice but to expand the staff with the help of augmenting.
Companies may need staff augmentation for a variety of reasons. Here are some common scenarios where staff augmentation can be useful:
- Scaling up quickly
When a company experiences rapid growth, it may need to scale up its team to meet demand quickly. Staff augmentation allows businesses to hire additional talent quickly without going through the lengthy and costly process of traditional hiring.
- Filling skill gaps
In some cases, a company may have a specific project or initiative that requires skills that are not available in-house. Staff augmentation allows businesses to bring in outside expertise on a short-term or long-term basis to fill these skill gaps.
- Managing workload
Companies may experience spikes in workload due to seasonal demands or unexpected project requirements. Staff augmentation can help businesses manage these fluctuations by providing additional resources as needed.
Hiring full-time employees can be expensive, especially when considering salaries, benefits, and other associated costs. Staff augmentation allows businesses to hire talent on a project-by-project basis, providing cost savings and flexibility.
- Speeding up project timelines
Staff augmentation can help businesses complete projects faster by providing additional resources to work on the project. This can help companies meet tight deadlines or take advantage of time-sensitive opportunities.
Overall, staff augmentation can provide businesses with a flexible, cost-effective, and efficient way to meet their talent needs and achieve their business goals. Let’s discuss it in detail.
What Is Staff Augmentation
Staff augmentation is a popular outsourcing model that involves hiring additional skilled personnel on a temporary basis to supplement or complement a company’s existing staff. This can be especially useful for businesses that need to quickly scale up their workforce or require specialized expertise to complete a project. Staff augmentation can be a flexible solution that allows companies to meet their staffing needs without committing to long-term employment contracts.
Also, staff augmentation can be an effective way to access a wide range of skills and expertise without the expense of hiring full-time staff or investing in expensive training programs. The augmented staff can work remotely or on-site, depending on the project’s requirements, and can be integrated seamlessly with the existing team. Staff augmentation providers typically handle all the administrative tasks associated with hiring and managing staff, such as payroll, benefits, and taxes, freeing up companies to focus on their core business activities.
The Rising Of Staff Augmentation
Augmentation services have rapidly gained popularity in IT, especially in recent years. This happens for several reasons:
- Lack of it specialists in the local market
According to a CBI/TCS report, the UK alone is losing £63bn ($87bn) annually as companies can’t find people with the right digital expertise. CNBC claims that about 1 million high-tech jobs remain unfilled in the US. At the same time, Statista emphasizes that staffing services grew from 5.2% to 6.3% in 2018-2020. These statistics show that more and more companies around the world are turning to augmentation services to find experts with the right technical skills to meet their staffing needs.
- Difficulties with hiring specialists for your own teams in a pandemic
In 2020, the world moved quickly to remote work due to the Covid-19 pandemic. Many office workers and teams have moved online and have been successful in remote communication and collaboration. In 2021, we are still experiencing the effects of the pandemic, and it can sometimes be difficult to find and hire the right people quickly. Many companies solve this problem by turning to staffing services and hiring employees online from all over the world.
- Cost reduction
Companies can significantly reduce their costs by hiring a team of augmentation employees. They may hire specialized professionals for a short time to work on a specific project segment. This avoids overhead costs for full-time employees related to hiring, benefits, full-year wages, etc. Moreover, the rates in Eastern Europe for IT professionals are much lower than in most of Europe or the US due to lower labor costs.
How Does Staff Augmentation Work?
Staff augmentation typically involves a three-party model where a client company hires additional resources from an outsourcing firm or staff augmentation provider to work on a specific project or for a particular period. The client retains complete control over the project, and the augmented staff members work as an extension of the in-house team. Staff augmentation providers offer access to a pool of highly skilled professionals, including software developers, project managers, business analysts, and designers.
Example #1 – the ERP integration process
One example of staff augmentation is when a client’s company needs to build and integrate a new ERP system block. The company might choose to hire a remote team of developers and project managers from a staff augmentation provider. The remote team would work on the project according to the client’s requirements, with regular check-ins and reporting to ensure the project stays on track. This would allow the client’s company to complete the project efficiently without committing to long-term employment contracts.
Example #2 – dealing with a legacy code
Another example of staff augmentation is when a client’s company has a legacy code built on a programming language that is not well known for the in-house team. Instead of hiring a developer with a very narrow skill set, the company might choose to go to a staff augmentation provider to find developers with the required expertise. The augmented developers would work with the in-house team to maintain, modify or upgrade the legacy code, to ensure that the client’s company maintains the necessary functionality without incurring the expense of hiring a full-time employee with a very narrow skill set.
An increase in staff is convenient to apply in both cases: both when workers are needed for a short period of time and for long-term work.
Short-term staffing increases are typically used by companies in such processes:
- During the high season or during peak days when their staff resources are not sufficient to meet demand.
- During vacations when it is necessary to replace employees at their workplaces and keep productivity at the same level.
- To replace a specific employee who has gone on vacation or sick leave.
Long-term staff growth is used for more global strategic purposes:
- When a company needs to take on additional specialists for a large project.
- When a company needs highly specialized employees and/or specialists in rare technologies, which are meaningless and expensive to keep on staff.
- Staff Augmentation Compared To Other Models
Since staffing is one of the outsourcing models, software customers may confuse it with other types of outsourcing. Let’s see what are the main differences between hiring an augmented team, choosing a dedicated team, or outsourcing your project to a software development team.
Staff Augmentation Or Other Models?
Staff Augmentation Vs Outsourcing Projects
The main difference between staffing and project outsourcing is who is responsible for decision-making and project management. The customer is responsible for the provided software development team in the augmentation model. In project outsourcing, the customer outsources the project’s development to their software development partner.
Project outsourcing may be a better fit for your software development project than a staffing model if:
- your company does not have an IT department;
- you want to avoid the responsibility of leading a software development team;
- you want to offload your internal team, forcing them to focus on core business tasks.
Staff Augmentation Vs Dedicated Team
When comparing staffing or team expansion to dedicated team models, we need first to figure out the difference between a dedicated team and project outsourcing. This is because when companies opt for the dedicated team model, they outsource the entire project to a team of professional software developers, just like with project outsourcing.
The main difference between project outsourcing and dedicated team models is that a dedicated team only works for one client, whereas a project outsourcing team can share multiple projects. The partnership between the customer and the dedicated team usually lasts much longer than with project outsourcing. Often the dedicated team becomes an extension of the internal client team – it establishes close communication and working relationships with the internal team and has a good understanding of the internal business processes in the company.
A dedicated team and an increase in staff may seem similar, although there are some significant differences:
- a dedicated team is better suited for long-term projects, while staffing is better for short-term projects;
- the growth team provides support to your internal team, while the dedicated team is a fully equipped team ready to develop the entire project;
- when you hire a growth team, you are in charge of all management duties, while a dedicated team has a team manager who handles all project issues.
Choose a dedicated team if:
- you want the software development team to be fully involved only in your software development project for a sufficiently long period of time;
- you want to select technical experts for your extended team;
- your project requires a variety of software-related services, from business analysis to product support.
When To Use Staff Augmentation
To get the most out of staff growth, you need to make sure that this model is the best fit for your project. Staff augmentation can be an effective solution for a variety of business needs. Here are some common situations where companies might consider using staff augmentation:
- When scaling an in-house team
Staff augmentation can provide a flexible and scalable solution when a company needs to expand its workforce to meet a project’s demands quickly. Augmented staff can be hired on a short-term basis, allowing companies to ramp up their workforce quickly without the need for long-term employment contracts.
- To enhance specific skills with augmented staff
When a company requires specialized skills that are not available in-house, staff augmentation can be a cost-effective way to access the necessary expertise. Augmented staff can bring skills, knowledge, and experience that complement the existing team’s capabilities, helping the company to complete projects more efficiently and effectively.
- While the increased workload
When a company’s existing workforce is overwhelmed with projects, staff augmentation can provide additional resources to manage the increased workload. Augmented staff can be brought on board to work on specific projects or to help manage day-to-day tasks, enabling the in-house team to focus on higher-value activities.
- To quickly fill the position
Staff augmentation can provide a timely solution when a company needs to fill a position quickly due to an unexpected vacancy or a sudden increase in demand. Augmented staff can be hired on short notice, allowing companies to quickly fill any staffing gaps and ensure that projects remain on track.
- When you need to reinforce your team
Staff augmentation can provide the necessary resources to ensure success when a company needs to reinforce its team for a specific project or task. Augmented staff can work alongside the existing team to provide additional support and expertise, helping to complete projects on time and within budget.
Main Benefits of the Staff Augmentation
What other benefits can you get, besides reducing staff costs, if you choose to expand your IT team? Increasing staff can benefit your business in many ways. For example:
- Provides value for money services
Staffing companies provide you with a variety of specialists to choose from, so you can hire the best specialists for your projects depending on the current and future requirements of your project;
- Eliminates any hidden costs
By hiring a remote staffing team, you avoid the costs associated with renting an office, buying equipment, etc.
- Increases the flexibility of your business
You can quickly scale your project team by adding or removing certain specialists depending on the needs of your project;
- Increases productivity
The software developers that you hire from staffing companies focus all their working time exclusively on your project and delve into all the details and aspects of the product being developed;
- Saves time searching for the right specialists
By hiring a remote recruitment team, you get access to an international talent pool and can find software development specialists with high technical skills in any IT field, for example, specialists in the field of IoT, blockchain development, artificial intelligence, and many others;
- Gives you full control over your project
With the augmented team, you have full control over the development of your project, and team members comply with your company’s rules for the duration of the contract.
Why Is Staff Augmentation Cost-effective?
Staff augmentation can be cost-effective for several reasons:
- No long-term commitments
With staff augmentation, businesses can hire talent on a project-by-project basis or for a specified period of time, without committing to long-term contracts or full-time employment. This means businesses only pay for the services they need and can avoid the overhead costs associated with hiring full-time employees.
- No recruitment costs
Recruiting and hiring employees can be a costly and time-consuming process, involving advertising, interviewing, and onboarding. Staff augmentation eliminates these costs by providing access to pre-vetted, qualified talent without the need for recruitment.
- No benefits or overhead costs
Hiring full-time employees can also come with additional costs, such as health insurance, vacation time, and office space. Staff augmentation allows businesses to avoid these costs since the augmented staff work remotely and are not considered full-time employees.
- Access to specialized expertise
Staff augmentation can provide businesses with access to specialized expertise without the need to hire a full-time employee with that skill set. This can be cost-effective since the business only needs to pay for the services they require, rather than investing in an employee who may not be needed full-time.
Overall, staff augmentation can provide businesses with cost savings, flexibility, and access to specialized expertise, making it an attractive option for meeting talent needs without committing to long-term contracts or full-time employment.
Staff Augmentation Challenges And Their Solutions
Staff augmentation can be an effective solution for businesses, but it also presents a set of unique challenges that companies should be aware of. Here are some of the most common challenges of staff augmentation and their potential solutions:
- Finding a reputable staffing company
One of the biggest challenges of staff augmentation is finding a reputable staffing company with a pool of qualified candidates. Companies should conduct due diligence on staffing companies, such as checking references and reviews, to ensure that they have a good reputation.
- Managing multiple independent contractors
Managing multiple independent contractors can be difficult, as they are not traditional employees. Companies should establish clear expectations, communication protocols, and performance metrics for independent contractors and use project management tools to ensure that they are meeting their objectives.
- Training and onboarding
Augmented staff may require training and onboarding to familiarize themselves with the company’s systems and processes. Companies should develop a structured training program and provide clear documentation to ensure that augmented staff are onboarded efficiently.
- Managing expectations
Clear communication and expectation management are essential to the success of staff augmentation. Companies should clearly define project requirements, timelines, and deliverables, and establish regular check-ins to ensure that the project is progressing as expected.
- Ensuring quality
Ensuring quality is a critical challenge in staff augmentation. Companies should establish clear quality metrics and performance expectations and use project management tools to track and monitor performance. Regular feedback and communication with augmented staff can also help to ensure that the project is meeting quality standards.
- Communication & time zones
Communication and time zone differences can be challenging in staff augmentation. Companies should establish clear communication protocols and use tools like video conferencing and project management software to facilitate communication. Companies should also consider time zone differences when setting project deadlines and check-ins.
- Security concerns
Security concerns are a common challenge in staff augmentation, particularly with remote staff. Companies should implement security protocols and establish clear data privacy and security policies. They should also ensure that augmented staff have signed appropriate security and confidentiality agreements.
Staff Augmentation With Bintime In 3 Easy Steps
Here in Bintime we offer staff augmentation services to help your businesses meet all your IT needs. Bintime’s staff augmentation process involves several steps to ensure that the augmented staff is a good fit for the client’s needs and can integrate with the client’s team:
1 step – defining the business needs
First, Bintime works with the client to define their business needs and identify the specific skills and expertise required for the project. The staff augmentation company then provides the client with proven records of their experience and recommends a team of developers that can meet the client’s requirements.
2 step – assigning the team
Once the team is assigned to the client’s business, Bintime takes care of maintaining their workspace, managing project access and security, and providing the dev team members with admin services. The company also works on retention and continuous competence training to ensure that the augmented staff members are up-to-date on the latest technologies and best practices.
3 step – maintaining the team
Finally, Bintime focuses on embedding the client’s culture with the new offshore IT team to ensure that they work seamlessly with the client’s existing team. This involves understanding the client’s culture and values and working to integrate them into the augmented staff’s work practices and behaviors.
Overall, Bintime’s staff augmentation services are designed to help businesses fill skill gaps and meet their IT needs with experienced, skilled, and dedicated developers. By working closely with clients to understand their needs and culture, the company ensures that their augmented staff are a good fit for the client’s business and can help them achieve their goals. Now you know how to find a staff augmentation company.
In conclusion, staff augmentation can be an effective solution for businesses looking to scale their team, enhance specific skills, or quickly fill positions. It can also present unique challenges, such as managing expectations and ensuring quality. However, by working with a reputable staffing company and implementing clear communication and training protocols, businesses can reap the benefits of staff augmentation.
When companies are considering building a business application or just need some extra help for their current project, they often opt for an increase in staffing models. This allows them to increase the potential of the internal team and reduce operating costs in the company. Meanwhile, some companies are using this outsourcing model to build their business strategies or use it as a source of an unlimited supply of top software development professionals for their projects. In any case, the growth model offers companies a wide range of opportunities to improve their projects and increase the productivity of their in-house team.
If you are considering hiring a growth team, here are some quick tips to help you make your team more efficient:
- for close internal and external collaboration of teams, organize additional meetings for them so that they can get to know each other and with the external team in order to quickly understand the processes in your project;
- designate a project manager for the external team so they can resolve any misunderstandings on the project from the start.
If you are interested in learning more about staff augmentation or would like to discuss your business needs, please visit our Contact Us page to get in touch with our team. We would be happy to answer any questions you may have and help you determine if staff augmentation is the right solution for your business. Contact us today to learn how staff augmentation can help you achieve your business goals.