STAFF AUGMENTATION: MEANING, PURPOSES, PROS & CONS
8 min
Nov 25 2021
Evgeniy B
Evgeniy BBusiness analyst
Nikita L
Nikita LBusiness analyst
The rapidly developing market and constantly changing business models force specialists to look for new, flexible personnel solutions that make it possible to save not only money but also time and labor costs. Many modern companies have already assessed one of such solutions. Temporary IT staff augmentation is designed to help cope with this task efficiently.

WHAT IS STAFF AUGMENTATION?

Staff augmentation is one of the branches of the outsourcing strategy, which allows managers to quickly hire the required team of specialists if it is necessary to attract new employees for the short or long term. Simply put, this method is a kind of personnel solution, which allows businessmen to quickly recruit workers for a particular project. For example, during a hot season. The model successfully combines the advantages of personnel outsourcing and the convenience of the company’s own internal staff, allowing managers to quickly meet the need for missing workers. Note that staff augmentation is not just an increase in staff in a broad sense; the notion means enlarging the number of employees by attracting third-party specialists for a certain project.

STAFF AUGMENTATION VS OTHER HIRING MODELS

They distinguish three main types of working process organization, namely in-house, remote, freelance. Let us compare them to the staff augmentation model, according to the main criteria that are vital for any business.
Staff augmentation vs other hiring models
What you get with various recruitment models
In-House Staff Hiring This type of interaction implies inviting an employee to work in the office. Basically, this type of activity is used by large and medium-sized businesses. But in-house is also popular with startups, where employees are involved in working on only one project. In-house is widely used in the IT industry. Remote Job This is the kind of work that is done remotely. In this case, the employee works as a part of the company’s staff under an employment contract. The specialist holds a certain position, receives a salary, and reports to the employer. To work in the company remotely, special services and programs are used. Employees can work via a remote desktop: connect from a personal computer to a common server and work in a single system with all documents. Freelance This type of activity implies complete independence. A specialist picks projects or clients and organizes working hours as desired. Often, freelancers work on various projects with several clients at once. A freelancer is looking for a job on specialized resources. Freelancing is especially common in areas such as design (in all its forms), copywriting and journalism, law, programming, architecture, translation, photography and video filming.

HOW BUSINESSES BENEFIT FROM STAFF AUGMENTATION

In most cases, such personnel optimization has a number of advantages. Staff augmentation, meaning temporary hiring the remote specialists for some specific needs, is a solution to many issues.
How businesses benefit from staff augmentation
Staff augmentation is lucrative and efficient
This infographic is a shorter description of the advantages you may get with staff augmentation in IT. If you are interested in more details, feel free to ask us any questions or simply check the table below.
Pros Why
Covers all fields of activity Turning to team augmentation services allows closing the gap in certain skills. Staff members do not always have the required level of skills or knowledge for solving any IT problem. Also, the employing company often does not have the opportunity to improve their qualifications, which takes time and money. If the team of employees lacks some specialists who are good at specific fields of knowledge/technologies, then it is possible to temporarily hire them.
Reduces the time spent on recruiting employees Recruiting is a long and troublesome process, and if it is delayed, then the company inevitably begins to lose money. Managers often follow the most common but far from the simplest path. They start recruiting such specialists on their own. However, in many cases, this leads to a complete waste of time, effort, and money. It is much easier to turn to a specialized agency that is ready to provide a business with the required staff. The specialized company is professionally engaged in staff augmentation, which means that businessmen do not have to spend their resources on recruiting. At the same time, they will be sure that the specialist will be found timely
Reduces the cost of recruiting employees If the manager wants to hire remote developers, he/she will spend less money if turning to a specialized company rather than coping with the task on his/her own
Reduces costs on social packages Employees who work as a part of the company’s staff are much more expensive than those who work in the framework of outsourcing. In short, staff augmentation allows the businessman to use human resources in the same way as if the workers were part of the team but without spending money on their social package
Makes the hiring process flexible Managers can hire the right number of employees quickly and exactly when they need it, without wasting a significant amount of money and time. For example, team augmentation services are welcomed for short-term promotions and advertising campaigns, finishing urgent projects by deadlines or replacing a sick employee
Allows entrepreneurs to think about the business, throwing all the issues on the staffing routine out of the head The outsourcing company assumes all responsibility for the management of personnel records for the provided employees. Thus, you do not need to think about paying them wages, deducting insurance premiums, taxes, etc.
Increases the investment attractiveness of the company The income of the enterprise in terms of one staff unit increases after dismissing specialized IT specialists to a separate agency.
Provides permanent access to services Unlike outsourcing, the specialists involved under the terms of the outstaffing agreement are constantly at their workplaces. This means that in case of urgent problems, IT service maintenance is timely provided, and business processes develop without unexpected failures.

WHEN STAFF AUGMENTATION IS DIFFICULT

This hiring model is full of advantages for any business. However, some negative sides are also found:
  1. IT Staff Augmentation is not welcomed for long-term projects. If work on a project stretches over several years, SA won’t be a good solution.
  2. The company can’t rely on its own employees only, which results in high dependence on third-party organizations. In its turn, this may add a certain degree of risk to plan sustainability.
Challenges of staff augmentation
Staff augmentation is not always easy

WHEN TO USE STAFF AUGMENTATION?

Managers turn to SA service when the company needs an employee for a specific project but does not have the ability to attract an in-house specialist or such a staff unit is absent. Оther cases can include exceeding the limit on the number of personnel (relevant for representative offices and branches), planning to reduce the staff without reducing the number of personnel, and the need for a long-term replacement of one or several employees.
When to use staff augmentation
The main use cases
Some companies use this service to start doing business in another country without resorting to legal registration at the initial stage. A pleasant addition of using this model is the optimization of costs for personnel and accounting.

HOW TO USE STAFF AUGMENTATION FOR YOUR BENEFIT?

To benefit team augmentation services at maximum, it is recommended to find a reliable vendor that will provide a location for your remote employees. These are companies that provide services for separate team rooms, where all the required facilities are available. Hired SA specialists should feel your employees, i.e. that both teams should interconnect somehow. To maximize the process of the interconnection of in-house and remote teams, some businesses install “customer windows”. For example, cameras and screens are installed so that teams can observe what is happening in the office. Upon picking an IT staff augmentation agency, find out whether the company has specialists who work as intermediaries between remote developers and in-house employees to ensure their better cooperation and understanding of the common task. For example, there are skilled managers who work in a SA team, get in touch with the client, and coordinate the workflow to build the most fruitful cooperation. To summarize:
How to use staff augmentation for your benefit

STAFF AUGMENTATION SERVICES AT EXCEED TEAM

Our company stands as a high-quality reliable provider of team augmentation services. Our team is a young company on the market. Improving the quality of service provided for individuals and legal entities is our priority. The range of services is diverse; our specialists are skilled are well-versed in their domains, which allows us to provide our clients with the best solutions for their tasks. This is what Exceed Team can offer you:

HOW WE WORK

The process of cooperation with the client always goes through the following stages. Personal Consultation & Customer Needs Identification If you’re convinced of the necessity to hire remote developers, contact our manager and appoint an individual consultation. During this meeting, we’ll listen to your desires, demands, and tasks set before future developers. A potential client should explain the purpose in detail to ensure better staff selection. At this stage, we analyze the obtained information and develop approximate plans on your budget. Staff Selection Our employees get down to the search for the right specialists required for the set task. We have a large database of specialists from different spheres of activity. They master various skills and are experienced in modern tech stacks. You will conduct interviews with the selected candidates. Employees Onboarding Onboarding is a set of measures for the adaptation of new employees: introductory training, briefings, welcome meetings, etc. Thanks to this technique, new team members quickly merge into the team and experience the adaptation period without problems. Trial Period This is an obligatory stage of our cooperation with clients. At this stage, the client can assess whether the hired staff copes with the set task or at least moves in the right direction. In other words, this is the period for the client to decide whether the team is suitable for the project, and he/she wants to continue hiring them. Final Decision If all sides of cooperation please the client, then a further workflow is developed and interconnection between parties and teams continues. Ongoing Support Our managers will keep in touch throughout the whole process of cooperation, provide assistance, and coordinate work, if necessary.
Staff augmentation services and workflow
The workflow at our company

WRAPPING UP

While the SA employee performs the duties set by the employer, the company providing this service assumes obligations to pay taxes, wages, and monitor compliance with labor laws (promotions, dismissals, sick leave, vacations, hiring). Using this service, you will get a handy tool to not only optimize the budget and reduce the costs of maintaining the personnel service but also ensure the social protection of employees, increase the prestige of the organization in the eyes of partners and investors. Companies today face the need to perform certain works that are not directly related to their field of activity. Progressive organizations delegate business processes that do not directly bring profit to outsourcing companies, as this reduces financial and personnel costs, while the quality of work performance often increases. Thus, IT staff augmentation will be the right solution in most cases. Any questions? Feel free to ask here! We are working to take the load off you.
Most popular questions

What are Staff Augmentation services?

The company (usually a large one), desiring to focus on its core business and not be distracted by various associated issues, enters into an agreement with an intermediary organization that provides it with a staff of employees. The latter is legally their employer and solves all issues related to the selection, salary, and registration of subordinates. It also maintains all documentation (accounting and personnel). Thus, staff augmentation is the process of temporarily attracting third-party specialists into the company to solve particular tasks, finish projects, etc.

How can I be sure that the team will deliver successfully?

Before you hire remote developers in our companies, we offer a trial period. Although SA activity is always connected with a certain level of risks in this regard, we try to minimize it. The client has a certain period to evaluate the competence and compliance of the gathered team regarding the set task.

What is the cost of Staff Augmentation services?

The final cost depends on many factors, such as:
  • the number of employees;
  • the set task and the level of project complexity;
  • time frames;
  • the required skills for task implementation.
When a new client comes to our agency, we try to adjust our services to the customer’s budget. Since we develop unique ideas, we base our solutions on the client’s budget agreed upon during the first consultation.

What are the advantages of Staff Augmentation?

For the businessman or startup founder, SA has the following benefits:
  • An ability to concentrate on the main business goals without focusing on side issues;
  • Experienced specialists from any sphere of activity;
  • Cost- and time-saving on recruiting new employees;
  • No need to provide such specialists with social packages;
  • A flexible hiring process.
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