It Staff augmentation: Is it a great idea for your company?
Living in the second decade of the new millennium, with constant and advanced communication and IT technologies everywhere, hiring home-country national employees is no longer our only choice. With this globalization and the advance in technological developments now it is possible to have an efficient international remote team, what is called, IT Staff Augmentation.
IT Staff Augmentation: Definition
IT Staff augmentation is an outsourcing business model whose goal is staffing a project based on the customer’s current goals/staffing necessities. In the world of IT augmentation, most of the time that includes staffing projects and companies with the needed developers (outsourcing ones).
Usually, a business can’t find the needed team members due to several reasons. In said scenario, it’s always a great idea to ask an IT staffing company to find the people needed.
IT Staff Augmentation Popularity
Is this staff augmentation service popular now? the answer is a rotund yes. There are several companies that build teams dedicated to developing teams for well-known companies and growing is the tendency of this business model.
How does It work?
Make sure have clearly identified what are the abilities and experience level needed; as well as exactly how many developers would you need for your project. For this step, you need to clearly define what are you looking for.
Review and selection
After you have clearly identified who you need for your team, the following step is to start searching! Thoroughly review the candidates. Have interviews and make the tests you think are suitable to be sure you will hire the right person for your team.
To achieve a good integration of the new team is important to have constant support and constructive feedback. After the process of integration, you must keep giving constant support to the new team members. Gathering feedback and creating solid relationships with them is key to achieve successful cooperation within the team.
Differences Between Managed IT Services and IT Staff Outsourcing
Managed services are about the outsourcing company managing the team, in the IT staff augmentation scenario the end customer is managing the staff. That means that managed services are all about the outsourcing of the IT staff based on customer needs.
If the customer has the needed tech management staff, then usually there is no need to use managed services. On the other hand, if the customer is not able of managing remote developers then the customer needs to hire managed services.
Advantages of IT Staff Augmentation
1. Legal and recruitment involvement
Getting people to work for you involves legal responsibility, much paperwork, payroll, taxes, and benefits, that alone is a lot of work! In Staff augmentation, the outsourcing company takes the role as the legal employer of the developers. Also, when you decide to go with IT staff augmentation, all the search and screening process becomes your provider responsibility. They will find qualified candidates based on your needs. The only piece of recruitment that remains in your hands is the final interviewing and the green flag for hiring.
2. Lower cost for Human Resources and Operations
The first advantage of staff augmentation and dedicated development teams is a big cost-saving because your human resources will most likely require lower salaries. For example, if they are in Latin America, East Europe or Asia the living cost is lower than in the US, which means they will require lower wages. Also, operational sites, equipment, transportation, etc. – all of these aspects are a big chunk of operational expenses. With outsourced staff, operational costs are much lower. Use staff augmentation services and decrease your operational costs by an important margin.
3. Increase your output and team size
Lower pay rates and development costs make possible for you to hire more people and that increases your output. You will see the savings of hiring 20 outsourced team members vs hiring 10 home-in (US), based developers.
4. You will find the specialist you need
The other big advantage of outsourcing is that it gives access to the specialists your business needs and you may not find it in your location. It also may happen that you have found the right one, but not at the most convenient price. Be sure, with Staff Augmentation you can always find the team member you need at a lower cost based outside of your country.
Outsourcing gives you with more geographical and time flexibility. In the scenario of having a big technical issue that needs to be fixed as soon as possible, your outsourced developers can take care of that while your local team is outside their working schedule. That gives an added value to your company.
3 Aspects to consider about IT Augmentation
- Apart from all the advantages listed above, also take note of some key aspects of this model.
- Non-Disclosure Agreement, you will likely be sure that intellectual property is safe. Therefore, the agreement you get with a Staff outsourcing company must contain an NDA.
- Monthly fee. Usually, the outsourcing provider would charge a monthly fee for every developer provided, said fee includes the salary and the provider’s fee for the service.
Remember the outsourcing provider remains as the official employer. For that reason, it’s important to specify each party’s piece of responsibility in the agreement of the working terms.
IT staff augmentation has several benefits when you know how to use them. Lower costs regarding operational and development services, schedule flexibility and a wide pool of talent available from an offshore location, consider all the information we provided above when deciding if this is what best fits your business.