True to its name, staff augmentation allows large and small companies to add trained professionals to their current workforce. This hiring principle is most popular among IT companies thanks to their periodic and project-basis needs.
Companies usually collaborate with providing organizations to get access to temporary staff for a specific period.
Staff augmentation may range from augmented staff on-site to remotely situated specialists. IT organizations are increasingly preferring staff augmentation to other outdated forms of recruitment due to a host of benefits the former offers.
While small companies progressively opt to enhance their whole workforce with a very tiny percentage of permanent staff, big companies complement their steady employees with project-based personnel to uphold an efficient balance.
Staff augmentation has become identical with IT firms, as both serve as flawless demand and supply partners for effective project distributions.
Significance of Staff Augmentation
Staff augmentation serves as a bridge between the available talent resources with rigorous skills and the accessibility of interim positions in IT firms.
Staff augmentation is fast becoming the best possible recruitment model as it involves flexibility in the workforce. While the complete overthrow of staff augmentation is still a few miles away, most companies are entering a fusion model.
Thus, most businesses are leveraging from the possibility of integrating the advantages of old-style means of staffing and staff augmentation.
How Staff Augmentation Benefits Businesses
1) Hire on the Go
One of the leading benefits of staff augmentation is its flexibility, which lets companies hire workers to suit their short-term needs.
Companies can replace their permanent staffs with skilled professionals to suit the need of the hour for a certain period. This flexible hiring averts the companies from experiencing additional costs of permanent hiring, like employee provident fund and health benefits.
The disadvantage, however, is that it also accords professionals the flexibility to work on a project basis and indulge only in the projects of their choice and brilliance.
This creates an ideal situation for both the parties, producing common benefits, filling the gap between the demand and supply of professional skills in a gainful and efficient manner.
2) Hiring a Larger Talent Pool
As a means of short-term recruitment, staff augmentation provides organizations with access to a very vast talent pool of trained professionals. Permanent hiring limits a company’s capacity to influence the available market talent.
On the other hand, staff augmentation lets the greater employment of millennials with a rigorous skill training.
Staff augmentation recruits are often experts in their fields, so the techniques they bring to the floor are unique and valuable.
Moreover, staff augmentation enables companies to engage with professionals with a specific skill set, making it easier for them to increase their pool of talent.
3) Enjoying a Cost-Effective, Competitive Edge
Staff augmentation guarantees an inexpensive means to influence from precise skill sets. Since professionals are employed for a precise project, the company does not have to bear the cost of the long term.
Therefore, hiring a project certain recruitment lets companies pay for the talent only during the necessary period.
Moreover, this skill precise talent offers an edge over all viable brands by adding domain-centric data to the operational background. The presence of peripheral talent also lets the companies reach out to bigger markets by showcasing the pool of talent available to them, entailing a win-win situation for the firms.
Primarily, they get access to an enormous talent at the segment of the cost of traditional hiring. Then, this talent pool offers them a position higher comparative to their contestants that lack such flexibility in hiring.
4) Operational Efficiency
Most small firms suffer high volumes of operational costs, particularly during wiry periods, with infinitesimal return on investments.
Staff augmentation sanctions operational competence by letting flexible working platforms. When companies collaborate with providing organizations, they do not need to bear the infrastructural costs of building and leading operations at a new place. The experts either work remotely or from the workstations of the supplying organizations.
Notwithstanding the remote working, employees are totally answerable to the employing firm and their management. As well as the drop in infrastructure costs, the costs of operating offshore are pointedly cut back.
Consequently, staff augmentation reduces the cost of hiring skilled professionals as well as the cost of operation. Such savings can easily be converted into profits.
5) Expansion and Adaptation
Flexible hiring lets companies expand their operations on a trial basis, without investing in a full-sized workforce.
Companies often seek to scale up their companies and benefit from the prevailing market conditions.
Staff augmentation comes to the rescue of such companies, helping businesses remotely. By letting companies hire on a project basis to test their adequacy in the new markets, staff augmentation opens new paths for firms looking for growth.
As well as the expansion, such flexible hiring lets companies familiarize themselves to the changing market conditions. With new skills and abilities being gathered every day by millennials, the market demand is quickly changing.
The companies incapable of responding to such changes are yielding to failure. Therefore, staff augmentation prepares companies with receptiveness, allowing them to react to the changing conditions by satisfying new demands using a project-specific workforce.
6) Access to New and Modern Views
There’s no doubt that experience comes with age, but the new generation has so much to offer in terms of present-day worldviews.
Having a fixed employee system leads to the inertia of ideas and views for business development and growing profits. The newly developing business demands often call out for unusual and ground-breaking means to deliver results.
Accordingly, staff augmentation lets companies engage with the viewpoints of a diverse set of professionals than operating time and again with a box of castoff ideas. Project-specific hiring gives companies the capability to leverage new ideas to drive their operations.
7) Sustained Control and Management
While companies leverage from the experts of supplying organizations, they still hold control over their work and management.
Contrary to project outsourcing where the whole workings of a project are transferred to an external unit, staff augmentation ensures that only the human resourcing is sourced to an external agency, while the supervision still remains in hand. This control over management lets companies maintain a grip over their projects and shape them in any way desired.
Project outsourcing often omits parent companies from any say in the management and implementation of a project. Staff augmentation averts this deviation by allowing parent companies to stay in charge of the final call.
Popular Companies That Have Remote Workers
Thanks to the swift development of technologies and the creation of different ways of communication, remote work has gained traction among a large number of companies the world over.
Besides, it is inexpensive than in-office operations, so more and more companies are undertaking this way of collaboration with some of the employees or the entire teams.
Most of the modern companies tend to hire as many remote candidates as possible.
Here are a few popular companies that offer remote jobs:
- American Express
- U.S. Department of Transportation
- Thomson Reuters
- American Heart Association
- General Electric
- Cisco Systems
- United Airlines
Why Hiring an Offshore Company Is Right
Existing technologies and swift pace of changes in the world market, enhance the ways you can operate your company to attain your business goals. There are a number of ways you can hire employees for your company.
For example, if you are seeking an expert team to hire to work on your project, there are three characteristic approaches to find the right talent for you.
Some of them are very economical and time-consuming, while some are quite expensive. Here are the three most important of them.
It is the most old-school and dependable approach. Local hire is reliable and something you’ve used to a convenient office with every worker being there, coffee breaks and 9 to 5 schedule.
It is so expensive that not every company can afford to hire capable staff locally thanks to high costs and office expenses. It typically takes a long time to find the perfect match to your requirements, and every so often these perfect applicants live somewhere abroad or would cost you a fortune.
If you’re not a large conglomerate and can’t afford a big budget, then you should find other hiring strategies.
Managed services method:
It is an outdated IT outsourcing, and it involves less training and suggests that service suppliers control their part of the job or project. It is accountable and helps manage costs.
IT project outsourcing:
It is more about out-tasking projects that can perform whole projects due to the resources of another company. The remote teams are accomplished and operated by the outsourcer. Managed services run the risks in meeting project goals and deadlines. Other related risks are flexibility and dependability. Lack of control in such a model is certainly a disadvantage.
Staff augmentation in this view is a better option for your company and is a flawless suit for smaller projects, providing you with the expert and trained staff for your project.
Staff augmentation in IT firms has moved beyond its commencement phase. It is being eagerly accepted as an alternative model of recruitment.
Companies take advantage of this flexible hiring by leveraging the competencies of specialists with rigorous skill sets in an affordable and effective manner.
Staff augmentation also benefits the millennial generation, who prefer working on projects that require their area of skill rather than doing traditional jobs.
Therefore, staff augmentation acts as an effective bridge safeguarding a well-organized pool of talent for companies available for specific durations.