Extend Your Team Using Staff Augmentation ModelMarwa Hassan
Staff augmentation model is used in organizations where the need for additional personnel is imminent but not immediately necessary. In this model, a temporary or contract employee is hired to supplement the regular staff. The advantage of using this model is that it allows the organization to avoid the cost and time associated with recruitment and training new employees. In addition, this model can allow the organization to use an existing employee to fulfill a temporary need.
When using the staff augmentation model, it is important to consider the qualifications of the temporary employee. This employee should have the same skills and qualifications as the regular staff members.
Because of the scarcity of tech talent, many startups and established businesses are looking for offshore vendors and remote developers. Startups are looking for technology experts who can manage specific tasks and thus improve the overall capabilities of their in-house team.
Companies also want complete control over their project resources, management process, and milestone deliveries.
There is good news for all such businesses: startup product development outsourcing is not the only game in town. Many IT companies nowadays use the IT staff augmentation model to achieve their goals in less time and money.
However, what is staff augmentation and how does it work? If you have the same query, you’ve come to the right place. In this article, we will go over everything there is to know about staff augmentation, from what it is to how it works to the benefits.
What is staff augmentation?
Staff augmentation is a collaborative outsourcing model in which highly skilled resources are hired on a contract basis rather than permanently. In other words, a staff augmentation company provides you with highly qualified and skilled employees who assist you in meeting all of your project objectives.
Staff augmentation has long been an industry buzzword, allowing IT companies to expand their teams without incurring additional costs. Non-technical and technical resources collaborate with your internal staff throughout the duration of the project. They can also work from home or at their workplace.
Knowing how the staff augmentation process works aids in evaluating current team members. It also allows you to decide whether or not to use an external resource.
Staff augmentation has become a popular method of obtaining a dedicated workforce. Staff outsourcing, resource augmentation, FTE, project outsourcing, and resource outsourcing are all variations on the same concept with minor differences in legislation, execution, and costing.
To meet their aggressive project requirements and deadlines, many companies are now hiring industry specialists through staff outsourcing. This method allows employees and employers to work on a project-by-project basis.
How does it work?
Identify your requirements
The first step you must take before beginning your search for candidates is to determine exactly what you are looking for. You must specify the number of resources you intend to hire. You must also define candidate specifications such as qualifications, expertise, years of experience, and so on.
Review and selection
The next step is to start the search process once you’ve determined exactly what you’re looking for. Find and evaluate all of the candidates who meet your requirements. Conduct interviews and tests to ensure that all passed candidates are eligible to join the team.
Integration of new team members
People make the error of believing that signing a contract with new candidates means the end of all hard work. However, this is not the case. During the onboarding process, you must ensure that you provide complete support for your new employees’ successful integration. You must ensure that all new employees understand your company’s procedures, processes, rules, and values. You must ensure that they are at ease in their new environment.
Persistent support and nurture
Once the integration phase is complete, you must continue to provide ongoing support to your new employees. To ensure effective and efficient cooperation, you must also receive feedback and build strong relationships with them.
Advantages of Staff augmentation
Boosts the recruitment cycle
Enlistment is a time-consuming process that can last months, especially if you’re looking for candidates with exceptional and unusual abilities. However, with the assistance of staffing agencies, you can reduce the recruitment time from months to weeks or even days. Augmentation specialists have updated databases with a large pool of tech talent to choose from.
This increases the likelihood that the augmentation firm will find you the right candidate much faster than if you started looking for it yourself. This saves you a significant amount of time.
Furthermore, the dedicated team provider handles the following tasks for you:
- Background checks
This is an ideal solution for a technology shortage that does not appear to be going away anytime soon. It is estimated that there will be a global labor shortage of approximately 85.2 million workers by the end of 2030. Only in the United States will this amount to an enormous $8.452 trillion in unrealized productivity.
Lower development cost
The most obvious and significant advantage of forming a remote team is cost savings. You’re probably wondering how. When compared to the US and Western European countries, recruiting resources from Eastern Europe and Asian countries would demand lower salaries because the cost of living in those countries is lower than in the US. This will result in significant savings.
Furthermore, you are well aware that the cost of hiring in-house employees in the United States is quite high, which includes additional costs such as taxes, employee benefits, social security, and so on.
When compared to the costs of utilizing staff augmentation services from companies in Eastern Europe and Asia, there is a significant difference. First and foremost, the pay is lower. Even the extra costs, such as equipment, office space, taxes, and so on, are lower. The bottom line is that hiring offshore staff augmentation is the most effective way to reduce development costs.
Less legal hassles
Hiring people entails a slew of paperwork and legal obligations, such as payroll, taxes, and employee benefits, among other things. When you use staff augmentation, however, the outsourcing company acts as the employer and handles all of the aforementioned legal responsibilities and paperwork.
Overcoming geological limitations
Many tech startups are struggling to find the right resources at the right price in their local market. Staff augmentation provides a complete solution to this problem by allowing you to search for needed specialists in different countries without having to look for them yourself. It gives you direct access to specialists who may not be available in your region or country.
Staff augmentation is important in providing flexibility for IT startups. Startups don’t have to worry about unexpected workloads because they can add the necessary resources with the necessary skills in a matter of days. Furthermore, startups can scale up and scale down based on their current needs. As a result, they are not bound to employees who will not be needed for months.
With staff augmentation, businesses can retain control over their management and jobs while leveraging their hired professionals. In the case of project outsourcing, the entire project work is transferred to an external unit. However, with staff augmentation in place, businesses can maintain control by obtaining human resources from an outside agency.
Staff augmentation provides companies with management control, allowing them to shape the project in the way they want. Project outsourcing used to reduce the parent company’s role in project execution and management. Staff augmentation, on the other hand, prevents this anomaly by allowing parent companies to make the final decision.
Expansion and adaptation
Companies frequently seek to expand their operations by capitalizing on current market conditions. However, the risks and failure chances associated with it frequently discourage businesses from taking such steps. Such businesses can benefit from staff augmentation. Businesses can now use flexible hiring to scale their operations on a trial basis without investing in a full-fledged workforce.
It encourages businesses to hire on a project basis to test their acceptability in various industries. Aside from growth, flexible hiring allows businesses to keep up with the volatile nature of the market. With the market changing on a daily basis and millennials learning new skills, businesses must constantly evolve to ensure their survival.
Staff augmentation emerges as an effective tool for accomplishing the same, as it enables businesses to respond effectively to changing market conditions by utilizing project-specific workers.
Leverage new concepts
If you keep the same group of employees for an extended period of time, it can lead to opinion stagnation and a lack of creativity. This can be a significant impediment to your company’s development and revenue growth. The successful and evolving enterprise requires novel ways to maintain its success.
Key things you must know about team augmentation
NDA and intellectual property protection
To protect your intellectual property rights, you must sign a non-disclosure agreement with the staffing firm. Furthermore, keep in mind that once your remote developers become full-time developers, they will have access to confidential information. As a result, you must ensure that they do not abuse it.
The outsourcing company is the official employer of remote developers
No matter how long the remote developers work for you, the outsourcing company will always be their official employer. As a result, it is critical that you define areas of responsibility for each party in the contract and ensure that both parties agree on working terms such as the number of off days, vacations, and so on.
Transparent monthly fee
Each developer should be charged a flat monthly fee by the outsourcing company you hire. The fee should include both the developer’s actual salary and the company’s commission for providing the service.
IT staff augmentation provides businesses with numerous benefits, including a faster recruitment cycle, lower development costs, fewer legal hassles, greater flexibility, sustained authority, and many others discussed in this article. If you own an IT company or a startup and are looking for IT staff augmentation services, get in touch with Nile Bits Now.
We are a leading software development company with a pool of skilled resources with expertise in a variety of technologies.