Thanks to the advanced IT technologies and communication methods of today’s digital world, hiring in-house staff members is no longer the only option for businesses – nor is it always the best option, either.
Technological developments and overall globalization of tech have made it possible to build remote teams thanks to IT staff augmentation companies located across the world that are incredibly beneficial for businesses of all sizes and industries.
This is especially true for companies in the information technology and software development industries.
The power and benefits associated with IT staff augmentation services have caused more and more tech organizations to make the switch from traditional in-house development teams to remote employees or teams located all over the globe.
What Exactly is IT Staff Augmentation?
IT staff augmentation is an outsourcing business model designed with the goal of providing talent for a project depending on the current goals or staffing requirements. There are many different situations in which a business would choose to hire staff augmentation services. This includes a temporary spike in everyday workloads that require an increase in labor, a bridge to work at capacity while a company hires a permanent team, a project requiring specialized skill sets only for a short period of time, and building a team of flexible labor to gain a competitive advantage in their industry.
This practice is not really a new one nor is it an uncommon one. The general staffing industry is a massive one, generating upwards of $490 billion in annual revenue worldwide.
Many people confuse IT staff augmentation with managed IT services, however, they are different. Hiring a managed services team typically means that the hired team is responsible for self-management. With an augmented team, the hiring company is managing the IT staff on a daily basis as if they are part of the in-house team. This is incredibly beneficial for the hiring company as they are able to ensure that projects are being completed at maximum efficiency in terms of both cost and time.
Why Choose IT Staff Augmentation?
When deciding whether to hire an in-house team or choose to augment IT teams with a third-party company, there are a number of factors to consider. However, there are a number of benefits associated with staff augmentation for businesses of all types.
1.Leveraging Existing Resources and New Talent – When compared to managed services, staff augmentation services integrate much easier with existing in-house teams. It’s also much easier for companies to integrate staff augmentation resources with their existing processes rather than trying to align themselves with an external team. The augmented team members are an extension of the in-house team instead of acting as their own entity.
2. Lower Cost of Development and IT Management – Cost-savings is a huge benefit for organizations augmenting their IT needs. When working with an external augmented team, costs are lowered thanks to the likelihood of the team being in another country. Salaries for permanent in-house employees are much higher.
In addition to salaries, there are many other additional costs associated with employing someone in-house or in-office full time. This includes insurance, benefits, social security, taxes, as well as software and hardware associated with the job position. Augmentation is a great way for organizations to cut down on daily operational costs.
3. No Need for Recruitment – Recruitment in the world of information technology is sometimes a nightmare for companies as there are so many specialized fields and technological skills to consider. When a business turns to an IT staff augmentation company, there is no longer a need for in-house recruiting. Staff augmentation companies take care of searching and finding qualified candidates for the business’s requirements.
4. Less Legal Hangups – From taxes and benefits to payroll, hiring employees comes with many legal responsibilities and a lot of paperwork. When a company decides to hire a staff augmentation company instead, they are relieved of these legal implications as the third-party company acts as the official employer of the hired team members. The staffing company takes on the burden of legal responsibility as well as the paperwork and costs associated.
5. Flexibility and Scalability – Working with an IT staff augmentation company allows businesses to scale their team members as needed on an on-demand basis. Should the need arise for additional developers, extra experts, or specific skill sets, it’s a simple process to add them to the team.
On the flip side, should business slow down a bit, organizations can reduce the number of outsourced specialists on their team to lower costs. Additionally, a remote team provides companies with more time flexibility in some cases. Should a technical issue arise while an in-house team in the United States sleeps, the team of dedicated augmented staff members in Argentina can help take care of the problems in a timely manner.
Staff augmentation is a powerful business model that leverages increased agility and response for organizations of all types. IT staff augmentation provides companies with numerous benefits, including time and cost savings, lower legal and recruitment headaches and easier integration of new team members. The importance of staff augmentation for IT and software needs can’t be overstated.
