“The Secret to My Success is that we have gone to Exceptional Lengths to Hire the Best People in the World” – Steve Jobs
Hiring the right candidate is as important as any other challenge in the company. When you find the right candidate, it is rational to hire him, even if he’s sitting at the other corner of the world. And in today’s time, when outsourcing & IT staff augmentation services are on the rise, it is no longer difficult. IT Staff augmentation comes with many benefits, including no recruitment costs, reduced time, and reduced efforts. The model is quite popular in IT sector due to the global scarcity of skilled tech workers. However, it is essential to understand the IT staff augmentation model before you even adapt it.
The article covers everything about IT staff augmentation services, including what is IT staff augmentation, types of augmentation models, its pros & cons, how does it work, when to use the model, comparing staff augmentation vs outsourcing models, followed by some other significant discussions.
Staff augmentation is an outsourcing technique that allows you to integrate highly qualified IT personnel into your team without the time and cost of hiring a full-time employee. You can use staff augmentation services to fill a single gap on your team or to establish a full dedicated team through an outsourced business, depending on your needs.
In any case, you would normally begin the process by interviewing candidates available from a staff augmentation provider or an outsourcing firm. You would then choose team members that best meet your needs. The team members you select will then integrate into your existing internal team, preserving your corporate culture and working in accordance with your development process and strategic goals.
Global Scarcity of IT Talent – A Report by <IMF
According to a recent report by the International Monetary Fund (IMF), the global scarcity of tech workers is expected to surpass 85 million jobs by 2030. The situation is most common among developed nations. For instance, the USA might be facing a deficit of over 6 million skilled labors. Similarly, Japan, Brazil, and Indonesia might be facing a shortage of around 18 million skilled labors, each.
The argument is further supported by the fact that 95% of employers looking for tech workers have experienced skills shortage in 2022, according to Forbes.
“Note – In the USA, 10-15% of tech roles go unfulfilled annually, on average”
Managers & employers are taking the necessary measures to tackle the issue. A popular solution to the problem is hiring IT Staff Augmentation Company from India. Why India? India produces the highest tech talent globally and offers top quality IT solutions at cost effective prices.
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A commodities staff augmentation business model is one in which a company delivers temporary labor to execute a specified project or set of duties.
When considering commodities staff augmentation, there are a few things to consider. To begin, it is critical to carefully assess the talents and experience that the organization requires. Second, the organization should have a strategy in place for integrating new employees into the existing workforce. Finally, the organization should be prepared to manage and monitor the new employees’ performance.
The commodities model is typically used to find workers with no specialized skills. Commodity staff augmentation may be a good choice if you need assistance with basic work like data entry.
Skill-based staff augmentation is a staffing approach in which organizations determine the precise skills and knowledge needed for a certain project or role and then hire workers with those talents on a short- or long-term basis. This can be an efficient approach to obtain the necessary skills and expertise without having to invest in training or development for your own employees.
When contemplating skill-based staff augmentation, there are a few things to consider. First, you must determine which skills and information you require. Then you must seek out specialists who can give such skills. Finally, you must include the expert in your team and manage the relationship.
Highly competent staff augmentation can be utilized to replace important positions or address skill shortages quickly. You can free up your own employees’ time by employing expertise in specialized areas.
The goal of this augmentation strategy is to identify an outsourcing partner who can deliver top-tier expertise to assist a company in gaining a competitive edge. It is critical to hire personnel who are true experts in their profession. It’s pointless to pay for someone who is only marginally better than your current workforce.
Planning and organizing the recruitment process involves a significant amount of time and resources. You must write a job description and keep it updated on various job boards for months at a time. You will also spend time short listing and interviewing individuals.
When you initiate an IT project, the IT staff augmentation company is responsible for all recruiting. Your remote development team can be ready in a matter of days rather than months. You also don’t have to worry about administrative or organizational costs with managed services.
“Note – In the USA, the time to hire a tech worker goes up to 72 days as compared to a non-tech worker that takes up to 42 days, on average.”
The reality is that you may not have enough expert-level developers on staff to match the expectations of your project. IT Staff augmentation services allow the use of external resources to find and close such gaps. As specialists add skills and expertise to your projects, the model saves you time on training and retraining.
You only get to choose which abilities and technical competence you want candidates to have. A staff augmentation company will swiftly provide you with suitable personnel to enhance your IT crew.
One of the primary advantages of staff augmentation for many businesses is the ability to effortlessly upscale and downscale your crew. These services are meant to be flexible.
Using staff augmentation services rather than employing and subsequently laying off full-time employees may make sense, especially if your primary business priorities are likely to alter over the following 12 months (not to mention far more ethical).
There are major costs connected with hiring full-time employees, including training costs, day-to-day operational expenditures, allowances and bonuses to increase employee contentment, and more. While having a dedicated long-term staff member is sometimes more than worth it, it doesn’t always make sense. In fact, in the USA, most of the companies choose nearshore vs offshore outsourcing and avoid on-shore in most situations.
Hiring high-level developers who will provide the same quality and quantity of work for a fraction of the cost over the course of your project will help you save operational expenditures.
1. Improve Current Expertise
While you may have in-house software developers, it is critical to supplement or strengthen your current knowledge when launching new products or initiatives. In this instance, you may want to extend your IT team while still leveraging existing internal resources. This type of reinforcement is widespread in organizations that use an IT staff augmentation approach.
2. Short Deadline
From job posting to on boarding, the recruitment process for software development roles is lengthy. You most likely do not have the luxury of time and patience, which could take up to two months on average. Implementing an IT staff augmentation project can help you achieve your needs regardless of whether the contract is short-term or long-term. You can also quickly access a vast pool of software engineers from anywhere in the world.
3. Specialized Skills Required
Augmented workers can help to fill a software development or IT skill gap by providing additional staff with the appropriate expertise to finish a project or activity. You may want to quickly increase your team by bringing in specialized engineers or technicians (Data Scientists, QA engineers, DevOps, or business analyst). Alternatively, you may need to bring in someone with a certain skill set who can help train your existing team over time.
4. Filling the Gap Temporarily
Starting a staff augmentation project will assist you bring in software development professionals to suit your short-term demands while you look for permanent candidates. They would essentially serve to fill the staffing gap, allowing you to keep your projects on track while you go through the regular recruitment procedure.
1. Long Project Length
IT staff augmentation service might help an organization meet its demands in novel ways. However, it is not a perfect answer in every situation. Staff augmentation is often used in shorter-term projects rather than long-term projects that take months or years to finish.
It may still make sense for a company to hire a contingent worker for longer-term projects, in which case an outsourcing deal would be preferable over the staff augmentation approach. Staff augmentation companies are frequently willing to negotiate such arrangements.
2. Confidentiality Issue
Some initiatives are classified and involve sensitive intellectual property (IP). In these cases, staff augmentation services should be carefully considered. However, the reasoning behind that decision is generally due to psychological comfort rather than hard data. A contract signed with a contractor is objectively as strong as one signed with a full-time employee.
For instance, one of the most well-known data dumps in history was orchestrated by a subcontractor who formerly worked for a tier 1 services firm and is now seeking refuge in Russia. As a result, when engaging enhanced workers for top-secret projects, organizations should go carefully and with prudence.
3. Heavy Training is required
Most businesses report unsatisfactory methods for managing a contingent workforce. A staff augmentation strategy may not be the optimal practice for projects that demand a high level of complexity, meaning a lengthy ramp-up period.
For example, one major semiconductor business was losing months in additional labor costs since the task required such a high level of sophistication. This resulted in a cost savings of nearly 50%; half of the additional staff’s contract time was spent ramping up due to context.
Hiring a freelancer would need the customer to be accountable for the most, if not all, of the issues, including recruiting, communication, payroll, etc. If you picked IT staff augmentation, you would have to deal with communication, management, payroll, and so on, all of which would be handled by a vendor.
Hiring freelancers, on the other hand, eliminates the need to pay a commission to a vendor. You would instead hire the contractor directly. However, it is crucial to note that various restrictions apply to the status of the freelancer in an organization. Working with a freelancer, for example, eliminates the need to pay employee perks or compensate for overhead costs. Furthermore, their employment may entail restricted access to your company’s data.
The most obvious difference between IT staff augmentation and managed services is the level of control that the client gives the provider. While the former merely assigns the provisioning of workers required to the vendor and the rest remains under the authority of the client, the latter functions as a one-stop shop. Manage service providers assume external control of a client’s non-core systems. When delivering talent, they handle all areas of the client’s operation.
As a result, managed services necessitate more delegation. This is frequently a fantastic answer for businesses wishing to optimize resource allocation and focus on in-house teams only for strategic issues.
While managed services & dedicated team outsourcing models appear to be identical, there is a major difference: when a client requests a dedicated team, the outsourced provider assumes additional responsibility.
You can manage your remote developers directly through resource and staff augmentation, but a dedicated team works under the control of the vendor. The former requires full-time commitment, whereas the latter frequently works with numerous clients on any given day. When adding staff, the vendor assesses salaries for specialized teams, although the client does not.
The distinction between offshore development centres (ODC) and IT staff augmentation is analogous to the distinction between building a home and renting an apartment.
An ODC is a representative office set up by your vendor. They will hire employees, find an office space, and locate additional service providers for furniture, internet connections, supplies, and so on. All of this will be included in the vendor’s charge, and once everything is in place, you will be able to manage the team and the office on your own because it will be a part of your organization.
The time and material outsourcing model requires a client to pay for the time spent by a development team or a single developer while working under them. IT Staff augmentation is distinct from this in that it involves temporary staff employment by augmentation businesses, which handle all of the employment taxation, documentation, and administration costs.
If a client desires, they can take up payroll duty here. Salary reviews and benefits are typically handled by the customer; however suppliers may do so on occasion.
With Konstant’s IT staff augmentation services, our in-house tech experts become a part of your team. We understand the client requirements carefully and select the perfect team member for your project. Konstant Infosolutions’s services include (but not limited to) full stack mobile app development and web development services. We have been serving clients for more than 20 years globally.
Contact our Sales team to get a free consultation and get your hands on our top minds.
On-site staff augmentation entails hiring temporary workers to work on-site. This service type enables direct cooperation and seamless integration into existing teams. On-site staffing is perfect for projects that necessitate close collaboration, team alignment, and face-to-face connection. It facilitates effective communication and fosters a solid working relationship between your existing team members and the members of the augmented team.
As the name implies, remote staff augmentation entails employing professionals who work from home. This service gives firms access to a global talent pool and is especially useful for organizations looking for specialized skills or cost-effective solutions. Remote staffing provides flexibility, scalability, and the capacity to work across time zones. Effective communication and project management methods, on the other hand, are critical for success.
The goal of project-based staff augmentation is to bring in expertise for a specific project or assignment. This type of service enables firms to gain access to specialized skills and information without making long-term commitments. Project-based staff augmentation is a fantastic option for short-term efforts or when a specialized set of talents is required that is not accessible internally. It allows you to scale your team up or down based on project needs, ensuring optimal resource allocation and cost effectiveness.
Hiring a complete team to focus on a specific project or area is what team based staff augmentation entails. This method gives a pre-assembled team with the essential skills and knowledge to tackle challenging projects. When you need a whole team with complementary skill sets or when you need to ramp up quickly for a time-sensitive effort, team-based staff augmentation is advantageous. It enables effective communication and smooth project execution.
So, these were the top IT staff augmentation services available in the market. Out of these four, project based staff augmentation & remote staff augmentation are most popular. However, it is important to hire offshore developersthat have relevant expertise & experience, like Konstant Infosolutions, to get satisfactory results for your project.
The first step starts when our clients contact us for our IT staff augmentation service. Our sales team and then managers take care of the request and analyze it before contacting clients back. The team schedules a call with the client at a mutually decided time and discusses the various details on both ends. We explain them the whole staff augmentation process and understand the required resources & the experts.
Our team analyses the client requirements and finalize the best talent for them. The developers & tech experts have the suitable skill set and carry the specialization of the work. Then, the resumes of the team are shared with the client.
Each team member selected for your project goes through an interview with you. Note that Konstant also analyses the team’s skills before presenting them to you. Generally, the client takes one or two interviews of each candidate to assess their skills. Note that interview process also provides the chance to the team to understand your requirements better and clear any doubts about the roles & responsibilities.
If everything goes well, we process the necessary documentation work between the client and developers hired for the project. Documentation helps in defining the roles & responsibilities clearly and clears any confusion about the project.
Even after the resource has been hired by the client, Konstant provides the required ongoing support to the team for better results. We believe it is not wise to leave the team but provide them the required support at every level. We also assure that the team completes the work on time & delivers as per your expectations.
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So, this was all about IT staff augmentation services. The detailed guide covered most of the significant topics, including what is IT staff augmentation, types of outsourcing models, how does it work, when to use it, benefits, and top challenges. Apart from this, we have also compared IT staff augmentation vs outsourcing models.
Further, it is also important to choose a trusted IT staff augmentation company, like Konstant Infosolutions, that can fill your requirements at affordable price. In the end, we’ll say that staff augmentation is a fantastic working model if you can find the right partner that falls into your budget. Till then, work hard, hire right!!!
Staff augmentation is an outsourcing working model where you temporarily hire additional talent out of your team to help in a project. The model allows saving a lot of time & cost required to hire a full time talent in the company.
The major difference between IT staff augmentation & IT outsourcing is the working model. While IT outsourcing is delegating the whole project to another dedicated team, IT staff augmentation includes temporarily hiring a resource from another team for your project on a contractual basis.
Most of the IT work & roles can be delegated through staff augmentation services, software developers, network specialists, data engineers & scientists, cybersecurity experts, and QAs.
Staff augmentation comes with several benefits including reduced overhead & recruitment costs, saves time & effort, and availability of better resources.
It is wise to research about staff augmentation companies on other research firms, like Clutch, ITFirms, GoodFirms, and Business of Apps. Further, check the company’s past experience, clientele, work ethics, delivery timeline, and more.
Companies consider staff augmentation for their IT workforce to meet the project needs or during the peak time of the business. It allows companies to leverage better talent at affordable price without any long term commitment.
There are three major types of IT staff augmentation models, namely, dedicated team model, project based model, and time-material based model. Time-material based model is the most popular among all three as it is most cost effective.
Usually, it depends upon several factors including experience required, skills level, location, project requirement, and timing. However, the average cost of IT staff augmentation service in India can range anywhere between $25 and $75/hour.
Vipin Jain is the Co-Founder and CEO at Konstant Infosolutions and is in charge of marketing, project management, administration and R&D at the company. With his marketing background, Vipin Jain has developed and honed the company’s vision, corporate structure & initiatives and its goals, and brought the company into the current era of success.
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