Cloud Computing: The Digital Shift 2.0 – Understanding the Current Market Trends

Create Your Dream Development Team with Staff Augmentation

Staff Augmentation

Staff augmentation has been emerging as a popular staff outsourcing practice, working wonders for achieving immediate business objectives and staffing needs for specific projects.

Businesses have been gradually shifting away from traditional hiring practices, due to several inherent challenges—expensive and time-consuming in-house recruitment or trade-offs between talent and budgets, to name a few. 

In contrast, providing myriad compelling benefits, like high flexibility and cost-efficiency, staff augmentation has been proven to be the most beneficial choice for companies of all sizes.

Staff augmentation lets you complement the capabilities of your in-house team, by contractually hiring employees with specific skills, from an external staffing company. 

Once you’re clear on the kind of specialist you require, you can interview pre-screened candidates provided by the company. Upon selecting the right candidate for your business requirements, you can immediately focus on onboarding them, while the staffing company deals with all the legal and administrative hassles. 

Staff Augmentation Can Cater to Different Requirements

There are several models of staff augmentation, each suitable for a specific situation. Knowing which one to go with for your requirement can save you a lot of time and hassle.

Type of Staff AugmentationWhen to use
Boutique agency- specialized staffing and consultingA rare skill set is required for a specific project
Master vendor staffYou need to hire in bulk and save costs
Gig platforms with access to independent contractorsYou need to hire quickly for a short task
On-demand talent platforms You must ensure a rapid and smooth hiring process
Independent contractorYou need to terminate the contract easily or assign roles without a clear scope

Why You Should Opt for Staff Augmentation

Global Talent Pool

You can leverage staff augmentation services to hire talent from across the globe, instead of being limited to the local labor market. This means you don’t need to compromise on your benchmarks and indicators, in favor of proximity.

Cost Reduction 

Staff augmentation can help you reduce costs on many levels. You only need to pay the staffing agency for their all-inclusive package services, instead of having to continually pay for your in-house employees’ off days, sick leaves, or maternity leaves. You also avoid all recruitment-related and legal costs. Besides these, you need not spend any training infrastructure for augmented staff. It’s the staffing company that ensures that the employees stay abreast of the latest technologies and trends. 

Flexibility

Traditional hiring can be a long and tedious process for your HR team. With staff augmentation, your HR executives can focus more on their primary functions, while the legal paperwork is taken care of by the staffing company, which significantly fast-tracks the process. This means that you can hire a specialist on short notice, just in time for your requirement.

Administrative Support

Collaborating with a staffing company means that you can delegate all the daily staff management tasks, like accounting, payrolls, insurance, team building, leisure activities, and so on, to the vendor, while you concentrate on your core business needs. 

Any kind of outsourcing comes with an inherent set of challenges. With staff augmentation, as well, understanding the possible challenges can help you take the necessary preventive measures to minimize issues.

A picture containing graphical user interface

Description automatically generated

Is Staff Augmentation Any Different than Other Outsourcing Models?

With so many outsourcing models available in the market, it’s easy to confuse staff augmentation with any of the others. The following tables should clear things up regarding the primary features that set staff augmentation apart from each of its counterparts.

  1. Staff Augmentation Vs. Managed Services
Staff Augmentation Managed Services
Only provisioning the staff required for the project; rest is controlled by the clientWorks as a package solution to manage all aspects of the client’s functioning in non-core systems
No change in the client’s operating modelThe greater degree of delegation for the client
The supplier commits to providing employees with the required capabilitiesThe vendor helps optimize the clients’ resource allocation for strategic business priorities
The suppliers need to hire employees first The supplier can provide readily available employees whenever needed
  1. Staff Augmentation Vs. Independent Contractor
Staff Augmentation Independent Contractor
All the administrative tasks are covered by the vendorThe client is responsible for payroll, management, communication, etc.
Clients must pay commissions to the staffing vendorFrees clients from paying commissions to the vendor, employing the contractor directly
Less restrictions in terms of roles that can be taken up by employeesCertain limitations are applicable; not all roles can be assigned to independent contractors
  1. Staff Augmentation Vs. Dedicated Team
Staff AugmentationDedicated Team
Comparatively less responsibility for the vendorMore responsibilities for the vendor
Clients manage the remote workers directlyEmployees work continuously under the vendor’s guidance
Full-time engagement for augmented staffTeams work for multiple clients simultaneously 
Salaries are managed by the clientSalaries are reviewed by the vendor
  1. Staff Augmentation Vs. Time and Material
Staff AugmentationTime & Material (T&M)
The vendor temporarily hires staff, managing all documentation, and administration costs of employment The client pays the vendor for the time spent by a single employee or a team
The client and the vendor can choose to share perks and salary review responsibilitiesPerks and salary reviews are done by the vendor only
  1. Staff Augmentation Vs. Offshore Development Centre (ODC)
Staff AugmentationOffshore Development Centre (ODC)
Employees are hired by the vendor on a contractual basisThe vendor hires offshore teams for the client, and hands them over after recruitment
Employees are managed mostly by the vendorEmployees have to be managed by the client
Quick results, particularly for one-off projectsMore transparency due to direct oversight 

Closing Thoughts

Although staff augmentation is a great alternative for businesses of all sizes, its various nuances and different deployment models can make it complicated for companies. To get the most out of this outsourcing practice, you must thoroughly analyze your needs. Take into consideration your allocated budget for the specified task, and also the degree to which you are ready to relinquish control.

With years of staffing and outsourcing experience, we at Josh Software, provide expert consultation and efficient services for bridging the staffing gaps between your in-house capabilities and your business objectives. 

If you’re looking for a completely hassle-free staff augmentation partner, and wish to understand how we operate, contact our recruiters for a sample staff augmentation contract.  

Elevate the capabilities of your development team, with staff augmentation services by Josh Software.

Reach out to us for more information