The practice of having skilled individuals from various departments work on a specific role across the organizational system isn’t new. Reasons like illness, unforeseen vacations, serious family matters, and such were the main factor in building the much appreciated and leveraged system of what we term “staff augmentation” today.
Getting Familiar With The Term Staff Augmentation
What is staff augmentation? Simply put, it is the process of adding additional staff to a company in order to meet specific needs.
But what does that mean in practice? When should you consider implementing it in your business? Which staff augmentation model is the right one for you?
In this guide, we will answer all these questions and more.
Staff Augmentation And Growth
Speaking technically, staff augmentation is the outsourcing of certain business functions to an external service provider. The term “staff augmentation” is often used in the context of information technology (IT) and software development services, but it can refer to any type of business function.
As a business seeking to grow beyond its competition, there could be many reasons why a company may choose to invest in the benefits of staff augmentation. The most common reason is to save money while getting the job done efficiently. Outsourcing can be a way to aid the in-house team, and reduce labor costs, as well as other overhead costs associated with running a particular function internally.
Another reason why companies outsource is to gain access to specialized skills or knowledge that they do not have internally. When a company outsources a function, they are essentially buying access to expertise that it would otherwise have to develop internally.
Staff augmentation is one of the many powerful corporate project management tools that when utilized aptly yield consistently growing productivity. However, many businesses are unaware of the potential of staff augmentation related to project outsourcing and which model to invest in to leverage their long-term growth.
Let’s understand the necessity of staff augmentation services to set the tone for further discussion.
How Important is Staff Augmentation in Realizing Business Potential?
The main reason why staff augmentation services are taken into account is the rising lack of available talent to fill an increasingly widening pool of empty organizational positions. This case isn’t limited to the software development or IT sector but across a wide range of industries.
Here are just a few cases to consider that highlight how indulging in the outsourcing market can be a quick fill-over to cover the gap created by talent shortage.
1. Talent shortage
Studies indicate a tremendous decrease in employee satisfaction concerning their job and the subsequent resignations leading to talent shortage across various departments within an organization.
2. The employers struggle
Employers face the risk of cutting capital as they try to fill the empty positions amidst growing competition and employee hiring demands, not to mention finding the right talent in the process.
3. A highly dissatisfied and overworked in-house team
The fact that employees have more flexibility in the employment options they can pursue doesn’t bode well for employers looking for specific skills in talented individuals. Since there are fewer skilled employees working on the clock, the burden to meet production demands falls on their shoulders. This shifting employee-employer relationship is another reason why the in-house development team suffers from overwork and falling morale.
4. Looking at the big picture
Even if companies choose to remain ignorant of the rising trouble with talent shortage today, a few years down the road will amplify the casualties faced on a global scale concerning the loss of capital and various economic opportunities.
All the above-stated cases benefit immensely from having a business-suited staff augmentation model in place, quickly and efficiently filling in the required positions as needed, whether temporarily or permanently, to bolster the production capacity of the organization.
Do you need help with your staff augmentation strategy?
Staff Augmentation And Its Types
There are three broad categories that encapsulate the types of staff augmentation available to businesses. It is vital to understand which category best suits your business needs before building an outsourcing team.
1. Commodity
This category consists of general tasks that merely require mass labor without the need for specific skill-sets. The labor should be responsive, consistent, and reliable such as general manual labor, event setting, retail management, and warehouse and factory tasks.
2. Skill-based
As the name suggests, this category insists upon having individuals with a specific skillset without much emphasis on the degree of proficiency. Such tasks could be along the lines of transcription, copywriting, spreadsheet use, clerical processing, data entry, typing, and more.
3. Highly-skilled
When you require services that fall into the highly-skilled category of staff augmentation, it implies individuals proficient in their skills, on an advanced level that comes only from dedicated training and experience. Job roles are quite specific such as brand design, software developers, software engineers, contract law workers, and more.
What Are The types of Staff Augmentation Services Available to Organizations?
Businesses have many options when it comes to staff augmentation services.
Traditional staffing providers
Traditional staffing firms provide access to a wide range of skilled workers, from administrative assistants to engineers.
Master vendor staffing providers
Master vendors offer a comprehensive approach to staff augmentation, providing a single point of contact for all of your needs.
Consulting firms & boutique staffing
Boutique staffing firms specialize in specific industries or skill sets, making them a good choice if you have specific requirements.
Gig platforms
Gig platforms connect businesses with freelance workers who can be hired on an as-needed basis.
On-demand talent staffing
On-demand staffing services offer instant access to a pool of qualified professionals, making it easy to find the right person for the job.
Direct independent relationships
In a direct independent relationship, the business works directly with highly specialized employees, rather than through a staffing agency.
Each of these options has its own advantages and disadvantages, so it’s important to choose the right one for your specific needs. But with the right staff augmentation strategy in place, you can be sure to get the talent you need to succeed.
When Do Companies Leverage Staff Augmentation Services?
The need to depend on an outsourcing strategy varies from organization to organization, given their long-term goals and the marketing tactics in place. If the work is easily handled by the in-house team, diligent shifts, overtime, and a few timely workload management strategies and increments help finish the work on hand on time.
A few scenarios that push or require a company to invest in team augmentation are mentioned as follows.
Strategical move
Most companies satisfied with their existing in-house team but looking to infuse some freshness to gain a competitive edge invest in flexible team augmentation services as a strategical move. Team management is taken into account, building a dedicated team that focuses purely on moving up the market value of the organization.
The flexible labor that an augmented team brings to the table is specifically skilled and agile, addressing potential growth tactics and putting effective strategies in place for long-term production.
A stop-gap bridge
When companies have just begun experiencing growth in their initial stages and require the technical expertise of a dedicated in-house team, staff augmentation helps bridge the gap to continue revenue production without incurring losses. This way, the company can curate an in-house team with detailed interviewing and skill-based practical considerations.
Meet production demands
Hiring an augmented team or specifically skilled individuals during peak seasons to fulfill production demands is costly for companies since it is a temporary need. You need to consider the overhead facilities that full-time employees require and whether it is a feasible decision in line with your business objectives. Staff augmentation offers the capability to address seasonal and peak production demands without the need to invest in managed services or their overhead costs.
Gain an upper hand with specialized backup
You could experience an onslaught of tasks that require specialized technical expertise the likes of which your remote development team isn’t able to handle. In such cases, you end up losing capitalizing on new ventures and opportunities. Staff augmentation comes to the rescue allowing room to hire augmented employees skilled in the specific field to fulfill the required tasks, albeit for a convenient and temporary time period.
Now is the time to make your staff augmentation strategy a success!
How Different is Staff Augmentation From Other Outsourcing Means?
Staff augmentation can be understood through a variety of definitions, but the most appropriate one would be backing your in-house development services with reliable outsourced help from a third-party service.
In staff augmentation, a company/organization partners with a staff augmentation provider to ensure key organizational positions are fulfilled. In return, instead of providing hired personnel, the provider calls forth a consultant that ensures your potential requirements for the ideal candidate are met. What follows next is the traditional recruiting process with detailed interviews regarding education, experience, training if any, and other helpful certifications so you obtain the right tech talent needed for your business growth.
Staff Augmentation Vs. Business Process Outsourcing
The primary difference separating staff augmentation and business process outsourcing is the operational approach. The idea or intent behind employing outside help remains constant.
Business process outsourcing, or BPO, is the contracting of non-primary business activities and processes to a third-party service provider.
BPO can provide significant cost savings and operational efficiencies for businesses of all sizes. Additionally, outsourcing can help businesses to tap into a wide talent pool and expertise.
Staff augmentation is the strategic placement of additional personnel within an organization in order to provide cost-effective support during periods of high demand or increased workload. By supplementing internal operations with skilled professionals, businesses can avoid the cost and disruptions associated with hiring new employees.
As a result, staff augmentation has become a popular solution for businesses of all sizes that need to improve their efficiency and bottom line.
Staff Augmentation Vs. Freelancing
Any project that requires additional manpower can be a candidate for staff augmentation. The project could be short-term, to free up the in-house team for other initiatives, or long-term to cover an influx of business.
The key concern when using staff augmentation is ensuring that the new team members integrate seamlessly into the existing development workflow.
Another option is to outsource the project to a freelancer or remote team. Of course, there are pros and cons of freelancing.: for example, it’s easy to find the right skill but freelancers might have other jobs so they can’t dedicate all their time and energy to your project.
The main difference between staff augmentation and freelancing is that with staff augmentation, there is typically more of a focus on Catholic skillset and fit within the company, whereas freelancers are more concerned with the actual project itself.
A few vital differences between the staff augmentation business model and freelancing mode are as follows.
Company Vs. Individual
Staff augmentation begins as an employment contract with a company rather than getting in touch with a potential candidate firsthand. Working with a company involves reliable communication and responsive results.
Freelancing on the other hand is dealing with an individual with particular skills where the person is liable for his/her professionality. The entirety of the partnership depends on the professional etiquette of the hired freelancer.
Professional Insurance
Staff augmentation is different from other managed services in the sense of being an insured employment means. When partnering with the ideal augmented partner, the core business contract clearly defines general liability and insurance offered under circumstances like risks, cybersecurity risks, frauds, data security, and such.
Working with a freelancer is akin to working blind without appropriate business insurance, sometimes including the lack of copyright insurance.
Talent Depth
Experienced augmented staffers offer more in terms of bench strength and talent, opening more opportunities to explore and access additional skills when necessary. Simply having a means of access to a rich talent depth through a reliable staffer gives more room for project-based outsourcing to experience organic growth with multiple solutions for all types of projects and operational hurdles.
Freelancing, unfortunately, doesn’t provide the same assurance that an augmented staffer does, with ample room for project delays and issues ensuring redundancy of hiring resources.
Staff Augmentation Vs. In-house Management – Which Is The Right Option For You?
Staff augmentation and in-house management are both popular options for businesses looking to improve their development processes. But which is the right option for you? Let’s take a look at the benefits of each approach.
Staff augmentation can be a great way to improve your development process. By bringing experienced developers on a project-by-project basis, you can get the skills and knowledge you need without having to manage a full-time team. This can save you time and money, and it can also help you get the most out of your existing team by bolstering ongoing support.
In-house management, on the other hand, can give you more control over the project implementation process. By managing your own team, you can ensure that everyone is on the same page and working towards the same goal. This can be a great option if you have a specific vision for your project.
So, which is the right option for you?
It really depends on your needs and preferences. If you’re looking for a flexible, cost-effective solution, staff augmentation might be the way to go. If you want more control over the development process, in-house management could be the better option. Whichever approach you choose, make sure you do your research and find a solution that will work best for your business.
Final Thoughts About Staff Augmentation
A staff augmentation model can be beneficial for businesses because it allows them to scale their team up or down as needed, without having to hire full-time employees. Staff augmentation can also help businesses manage their workloads more efficiently, as each augmented staff member can be assigned to work on specific tasks or projects.
Additionally, working with a reliable staff augmentation firm can help businesses save time and money, as they will have access to a pool of pre-vetted, qualified candidates. Ultimately, the benefits of staff augmentation as an outsourcing service make it an attractive option for businesses of all sizes.
We hope these tips will help you in your staff augmentation strategy.
Growth Hackers offers a comprehensive resource augmentation model that helps businesses connect with the professional support they need to thrive. Our solution includes a database of pre-vetted resources, a project management tool, and a team of expert consultants who will work with you to create a customized plan for growth.
We also offer a satisfaction guarantee, so you can be confident that our solutions will meet and exceed your expectations. Contact Growth Hackers today to learn more about how we can help your business reach its potential.
