What is Staff Augmentation? A Complete Guide

What is Staff Augmentation

June 3, 2024

According to the latest reports, the US IT staff augmentation market is expected to reach $39 billion in revenue by 2024.

Screening resumes, interviewing candidates, and shortlisting them is one of the most lengthy and time-consuming tasks for any organization. In today’s world, companies are faster and quicker than ever before in running their business operation as it has become the need for time. Modern problems require modern solutions, and nothing could be better than the staff augmentation model.

To streamline business operations and fill the talent gap, the staff augmentation model is the right approach. Not only for enterprises, but it has proven to be extremely result-driven for SMBs and fast-growing startups.

This blog focuses on IT staff augmentation, its types, benefits, challenges, and choosing the right model for your business.

What is Staff Augmentation?

Staff augmentation means outsourcing projects to the hired professionals to fulfill the staffing needs as required by the projects. It is the process of outsourcing tech talent temporarily for an organization’s current staffing needs and objectives. You can hire dedicated remote developers to work on your project with the required skills. The project sizes and tenure can vary based on the project demands and requirements.

Staff Augmentation Industry Stats

Types of Staff Augmentation

There are three main types of IT staff augmentation that includes commodity-based, skill-based, and highly skilled augmentation. Before you start looking for outsourcing companies, it is essential to know and understand the types so that you can choose the one that suits your organization’s interest the best.

Types of Staff Augmentation

Let’s discuss them briefly.

Commodity-Based Augmentation

Organizations use commodity-based augmentation when they want workers to perform basic tasks and do not have to be highly skilled. It is used when companies want to recruit workers quickly and get the work done.

Skill-Based Augmentation

As the name suggests, these workers have higher education degrees and are more skilled than commodity-based augmentation. Organizations choose this model when they want tasks or projects on a critical skill and need someone who can efficiently do it. It must be noted that these skills are not critical but rather miscellaneous or require a certain level of skill to get the job done.

Highly Skilled Augmentation

As the name suggests, it requires high-level expertise for individuals who can perform complex tasks like product development, software development, media buyer, etc. In this type, the projects are divided into long-term and short-term, depending on the project requirement.

How Does Staff Augmentation Work?

In order to fill the gaps in the workforce, a staff augmentation contract follows a thorough procedure that allows companies to get the work done seamlessly.

Here’s a step-by-step overview of how staff augmentation works:

How Staff Augmentation Work

These steps also highlight the staff augmentation best practices that entail following a detailed process so that you do not miss any important factor. The process of staff augmentation starts with identifying your needs and requirements for the project and the candidates. It helps in narrowing down the profile of an ideal developer required for the project.

The next step is looking for outsourcing companies that can help you in finding remote talent for your project. Devace Technologies helps SMBs and enterprises in finding the top tech talent to accelerate project development and bring results beyond expectations.

The best approach to outsourcing web development is to review the portfolio, assess their experience and expertise, and test their technical skills. You can also look up the review websites to learn about the client testimonials and reviews about the company.

The outsourcing company gives the profiles of the best candidates for your project. However, after test tasks and interviewing, you can shortlist the chosen candidates for your project.

The next step involves onboarding the team and providing them with access to necessary tools, software, and resources to start working effectively. From managing to monitoring, evaluating, and concluding the engagement tenure, the tasks are assigned, results are evaluated, and then the contract is closed after the successful completion of the project.

Types of Staff Augmentation Services

As the outsourcing companies and the need for the work grows, different types of staff augmentation services have been introduced to the market. Let’s take a look at them.

On-site Augmentation

This type of staff augmentation service is to hire individuals who work within the premises of a company with an in-house team. It is recommended to the teams who must work closely with other team members as per the project requirement. The limitation of this type of service is geographical limitations as candidates might not be always willing to move to different places.

Remote Augmentation

As the name suggests, it entails hiring individuals who work remotely either offshore or onshore. It allows companies to access global talent and utilize them for projects. In this kind of augmentation service, companies often go for either offshore or nearshore staff augmentation.

Let’s take a quick look at offshore and nearshore staff augmentation.

Key Features Offshore Nearshore
Time Zone High Same/Less
Expertise and Skills Medium High
Costs Medium to low Medium
English Fluency Medium High

Project-based Augmentation

In this type of staff augmentation, professionals are hired based on skills required for a specific project. It must be noted that it does not require a long-term commitment to the hired professionals. One of the main benefits of this project-based staff augmentation is that it gives the flexibility to scale up or down your team based on the projects’ influx and requirements.

Team-based Augmentation

For this type of staff augmentation, ready-made teams are hire for a project that comes with all the resources require to work as a team. It comes with a complementary skillset so that the project can be completed with and beyond the required skills to make it top-notch. This type of augmentation service is required when:

  • There are large-scale or complex projects that require a variety of skills and coordinated effort.
  • Project timelines are tight and there is no time for the traditional hiring and onboarding process.
  • Projects require specialized knowledge or expertise that is not available in-house.

Gig Platforms

With the passage of time, gig platforms have become a useful source for finding candidates. These are the online marketplaces that help find skilled professionals and candidates for different sorts of projects, either long-term or short-term.

Many companies leverage staff augmentation through gig platforms as it gives easy access to the teams by hiring agencies in addition to individual candidates. Moreover, it is also cost-effective as competitive bidding and global talent pools often lead to cost savings compared to traditional hiring methods.

Here are some of the top gig platforms for IT staff augmentation services:

Popular Gig Platforms

Now you have the idea of staff augmentation services, let’s discuss when you should leverage them for your business objectives.

When to Use Staff Augmentation Services?

Staff augmentation services can be best utilize when you need to hire professionals for short-term projects. Other reasons to use staff augmentation services include low budget, the need to expand the team, and hiring resources for a complex project.

Benefits of Staff Augmentation

Organizations have started to rapidly adopt staff augmentation models because it offer many benefits and quick results. Here is a brief overview of the benefits of staff augmentation.

Staff Augmentation Benefits

Access to Global Talent

Nearshore and offshore resource augmentation helps companies to get access to skilled candidates in the quickest way possible. If you go beyond your geographical region, you will find a wide range of talented and skilled individuals in different domains. It also minimized the dependability on the internal resources for the skills they do not have a strong grip on.

Therefore, staff augmentation gives companies the opportunity to find the right talent from all over the world and utilize them to scale your business.

Fill Skill Gap

Staff augmentation allows companies/organizations to go beyond the boundaries in case they face a project or talent that requires specific skills. Whether it is a talent gap or a skill gap in the internal teams, IT staff augmentation is always to the rescue. It gives immediate access to specialized talent who can help you complete your project with all the right skills.

Provides Value for Money

One of the reasons that companies have started adopting this model is that it is cost-effective and provides value for money. They do not have to spend time on a lengthy recruitment process, nor do they have to spend the hefty amount required for that.

It substantially reduces the overhead costs such as the company does not have to pay for employee benefits, reduces expenditure on materials needed for staff, such as office space and equipment—and you won’t need to pay full-time salaries as well. It allows companies to get the most affordable solutions smoothly.

Time Saver

Another one of the top benefits is that it gives rapid deployment and immediate productivity; as it does not involve the lengthy process related to hiring and onboarding. After the preliminary introduction, resources can start with work and deliver the project within the timeline.

It is also time saving as it streamlines the processes and enables companies to focus on the core activities while other tasks are manage by the augmented team.

Staff Augmentation Challenges

Even though staff augmentation is soaring, it comes with challenges that need a complete strategy to overcome them. The top challenges include time zone difference availability, communication, intellectual property and data security, and many others. Let’s discuss the staff augmentation challenges briefly.

Time Zone Availability

One of the biggest challenges in IT resource augmentation is the time zone difference in work schedule that creates hindrances in communication and other processes. Moreover, connecting at unconventional hours and collaboration becomes difficult for both the employer and the hired professional.

Security Risks

Another main challenge the companies come across when working with outsourcing companies is security risks and losing intellectual property to others without consent. It is better to sign a non-disclosure agreement (NDA) with high penalties if the company does otherwise.

Transfer Project Knowledge

Transferring essential knowledge about the project is the key point when hiring augmented teams for the projects but it often comes in the form of a challenge. It is important to make sure that these external teams fully understand the project’s goals, context, and requirements is crucial for success. Effective communication, detailed documentation, and weekly sync-ups can lead to effective transfer of project knowledge.

Choose the Right Staff Augmentation Model with Devace

Choosing the right model is essential to get successful results in a project. Here are some key factors that can help you choose the model that suits your business interests the best:

Devace Technologies helps small to medium-sized businesses in finding the right talent for your projects. Save your time and hire quickly for your project with our staff augmentation services tailored for bespoke needs.

Conclusion

Staff augmentation services have proven to be extremely beneficial for the businesses when it comes to saving costs and creating smooth business operations. In today’s world, businesses are becoming smarter and utilizing resources that can deliver great results with cost-effectiveness and nothing could be better than choosing resource augmentation as a solution.

Frequently Asked Questions

How do I choose staff augmentation services?

To choose staff augmentation services, assess your project’s specific needs and the required skills to define the scope of your project. Next, do research and compare providers based on their experience, talent pool, client reviews, and support services. It should ensure that they have a track record of successfully integrating augmented staff into existing teams and delivering quality results.

What is the difference between staff augmentation and outsourcing?

Staff augmentation involves adding temporary, skilled professionals to your existing team to fill skill gaps for specific projects. Outsourcing, on the other hand, means hiring an external organization to handle entire projects or business functions. The former keeps control in-house, while the latter shifts responsibility to the external provider.

How does staff augmentation differ from traditional hiring?

Staff augmentation brings skilled professionals into your team on a temporary basis, allowing flexibility and quick scaling for specific projects. Traditional hiring involves a longer process to permanently add employees to your workforce, with higher costs and long-term commitments. Augmentation is ideal for short-term or specialized needs.

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