Behind every successful project stands a great project team. But how do you ensure you have the perfect mix of talent right from the start? The secret ingredient that binds a dedicated team together seems elusive to many. While some business verticals thrive on stability—monitoring systems, data backup, and network management—sudden bursts of new and unexpected IT projects can leave companies with overwhelming work all at once. When faced with such scenarios, the decision often boils down to choosing between complete outsourcing or opting for staff augmentation to accomplish the goal.
If you’re considering staff augmentation to fuel your business’s growth, it’s important to weigh the benefits and drawbacks before you make your decision. In this blog post, we’ll navigate the intricacies of staff augmentation, explore its merits, and uncover potential pitfalls, equipping you with insights to decide if it aligns with your success journey.
Staff Augmentation vs. Project Outsourcing
When it comes to managing projects, two approaches stand out: staff augmentation and project outsourcing.
Project outsourcing means entrusting your entire project to an external company. It essentially means the hired company is accountable for results and project management, giving you minimal control over the progress or future direction. In contrast, Staff augmentation involves adding virtual resources to your in-house team to handle the workload, giving you complete control & oversight of the project, creating a win-win solution.
Different staffing models compete with staff augmentation, like traditional outsourcing and managed services. The main difference is how they compensate for work.
Businesses pay contracted labor based on specific deliverables and outcomes in traditional outsourcing and managed services. This means your company will have less involvement in day-to-day execution.
Whereas in staff augmentation, you can opt for a Pay-As-You-Go model, accessing dedicated resources with customized bundles. You can choose from skilled experts based on your specific needs and timeframes in this model.
Staff augmentation is great for filling temporary gaps. For example, a software development company can use IT staff augmentation to add skilled professionals, bridge skill gaps or manage increased workflow.
Another breaming example is the healthcare industry. In healthcare, staff augmentation provides short-term nurses and qualified personnel to handle surges in patient volume.
The Surging Popularity of Staff Augmentation
Staff augmentation expands your in-house team by tapping into an additional talent pool to help them meet immediate business needs without the added expense of full-time employees. Many reputed IT firms are implementing the Staff augmentation model for short-term engagement, saving valuable time and money. Initially used in tech industries to compensate for skill gaps, staff augmentation has now expanded to various sectors, driving the growth of the global staffing industry, which generated $212B in 2022 alone.
However, Staff augmentation’s growth is not limited to the IT industry only. It has witnessed significant growth across various industries as a cost-effective solution to address short-term staffing needs. Marketing executives and managers embrace it as a creative way to boost production capacity for new campaigns, product launches, or rebranding efforts.
A prime example is Woodruff Sawyer, a prominent insurance brokerage and consulting firm in the US, which successfully leveraged an augmented team to execute a major rebranding initiative.
While staff augmentation has proven to be an indispensable asset for many companies across diverse industries, it’s essential to understand its pros and cons to find the best staffing strategy for your organization.
Pros & Cons of IT Staff Augmentation
One of the best things about IT staff augmentation is that it can help with the cost cutdown that comes with hiring and training new employees. Augmenting staff can not only help you retain control over your project but also help boost your team’s overall efficiency. By outsourcing talent to fill in your requirement, you can expand your team’s bandwidth, allowing them to focus on core work, enhancing company-wide productivity.
- Gain Project-specific Expertise: Staff augmentation gives you access to a pool of widely experienced talent. When you work with a staff augmentation partner, you gain access to their pool of pre-vetted talents tailored to your specific needs. You can also tap into specialized expertise for your specific project requirements.
- Talent without Boundaries: With staff augmentation, you can transcend geographical limitations and boost work performance. Directly access expertise from other countries, tapping into professionals unavailable locally, enriching your capabilities.
- Scalability: Staff augmentation helps you fill your skill gaps for new projects without immediate hiring worries. With the pay-as-you-go model, you can hire specialists as needed for optimal deliverability, avoiding the burden of permanent hires.
- Empowering Flexibility & Sustainability: Staff augmentation is essential, particularly for start-up IT firms, providing a flexible option for companies facing demand fluctuations. It effectively handles workload pressures by hiring temporary employees for specific roles. This scalability allows you to work on projects of any size, ensuring a sustainable approach to your business needs.
- Seamless Integration & Timely Delivery: One of the biggest benefits of augmenting Staff is the outsourced team can fit right in with your internal processes. This makes it easier for your current team to work together on IT projects. Moreover, when unexpected deadlines arise, your internal team proves more flexible and adaptable, facilitating timely deliveries. This synergy enhances overall efficiency and project success.
- Internal Knowledge Gap: The augmented staff may need more access to specific projects or company knowledge. Plus, the external team members will need timely KT for successful integration. Hence, sharing information with the staff augmentation provider can ensure a smooth transfer to your internal team.
- Long-Term Cost Concerns: While staff augmentation saves money initially, extended projects may increase labor costs. Opting for skilled specialists under a Pay as You Go model allows budget control without compromising project success.
- Increased Project Management Efforts: Adding more staff means extra time and energy will go into managing the team. Even though the out-staffed employees would be easier to manage, you still need to ensure strong oversight and well-defined processes for successful project delivery.
Without a doubt, staff augmentation emerges as the ideal solution to bridge talent gaps, offering more control than outsourcing or managed services models. As a business owner, you retain authority over the project and handpick the talent best suited for each role, empowering you to steer the project your way.
Staff augmentation offers numerous benefits, such as eliminating recruitment time and accessing a global pool of highly skilled developers and engineers. By augmenting highly-skilled professionals to your in-house team, you foster a positive environment that optimizes competencies and elevates productivity.
Need more help in choosing the right talent? Don’t hesitate to reach out! We’re here to assist in discussing the best option for your unique needs.