Leveraging resource and staff augmentation in 2022, businesses can build futuristic products. Find the reasons & hurdles of expanding your team offshore.
2. Quick Summary:
For Startups, hiring experts might involve a
lot of costs which can be a disadvantage for
their business profit and revenue. Another
downside is that this approach generally
doesn’t work when your project needs an
immediate team player. Under such
circumstances, one smart move that
Startups can opt for is to use a hiring model
known as Resource and Staff Augmentation.
If you wonder what is staff augmentation,
here is a guide that states the benefits of
staff augmentation and how entrepreneurs
can quickly build excellent products in 2022.
4. Today, we live in a digital world where we
see continuous improvement and evolution
when it comes to technology. Considering
this, businesses in the 21st century need to
comply with all the high-technological
requirements of their clients if they wish to
stay ahead of their competitors.
This competitive race strives for
technological innovation where online
presence plays a greater part. Eventually,
organizations struggle to offer relevant
applications and mobile and Web resources
to personalize user experience, thus
prioritizing customer satisfaction. The case
is worse with Startups. Hence, the trend
towards fulfilling the client’s online
requirements is here to stay longer as
technologies are turning even more
advanced and sophisticated.
5. With this enters the concept of staff
augmentation. What exactly does it mean?
This question bothers a lot of managers and
business owners as there has been a hype
regarding staff augmentation for being the
future of flexibility and cost-effective staff
recruitment. However, is it so? Let’s
discuss!
With this enters the concept of staff
augmentation. What exactly does it mean?
This question bothers a lot of managers and
business owners as there has been a hype
regarding staff augmentation for being the
future of flexibility and cost-effective staff
recruitment. However, is it so? Let’s
discuss!
6. Staff Augmentation is a brilliant approach to
outsourcing, assuming the staff recruitment for
a strong project in line with the organization’s
current staffing requirements and objectives. It
focuses on in-house team expansion, thus
assisting you in hiring specialists for quick
project completion.
Simply put, suppose you are a startup, and you
plan to build a mobile application for your
online store, and you require at least 6
developers to complete the task. The problem
arises when you realize your in-house team
contains only 3 developers. Under such
circumstances, you might think of urgent
recruitment to find 3 more skilled
programmers with the needed expertise.
All in all, this entire process may take up extra 1-2
months, which will do nothing but eventually
delay the launch of your project besides stripping
you off exceptional projected revenue.
7. In such a case, when you opt for staff
augmentation, you get 3 exceptional
developers in your team within 1-3 weeks.
This further helps obtain a better and
quicker product completion besides a swift
market launch
The best part? After the application hits the
market, you aren’t required to fire the
programmers who put their hands on it.
This way, startups avoid all the paperwork,
legal, and documentation hassle of full-time
and official employment besides the extra
cost invested in hiring.
9. Lately, Staff Augmentation is becoming
quite popular. During the deadly COVID
pandemic, the IT companies utilized the
resource and staff augmentation model to
its maximum potential.
In fact, under the Businesswire report, the
market revenue of the worldwide software
is forecasted to touch $968.25 billion by 2021
end. The below image from Statista predicts
a radical revenue growth for the upcoming
few years.
10. Considering the rate, it would have been
impossible without many software experts and
specialists. This further indicates that the global
developer’s count is going to reach 28.7 million
people. Staff augmentation is one such
approach that assists in distributing a particular
workforce between businesses.
Ideally, staff augmentation is an approach to
hiring that offers a plethora of benefits to
businesses. This happens due to the hiring
speed of employer and their flexibility to
add/remove developers from the augmented
team. Such excellent flexibility is never really
possible when it comes to in-house teams.
Searching and hiring a new employee is quite
lengthy. Alongside, it requires too much
paperwork along with official registration.
Firing staff also turns out to be burdensome. It
reduces the overall value of in-house
development, specifically when the new
developers are required for a smaller duration
eg. 6 months.
11. In-house hiring is highly expensive
Staff turnover continues to rise today
Tradeoffs between budget and quality
turn poor
Searching and hiring new staff involves
too much time and effort
It becomes hard to focus on real talent
with complicated hiring practices
After all the above discussion, you might
have one question- why the augmented
staff is an attractive and popular option for
organizations of all scales and sizes. Well,
below we have listed a few considerations
that make resource and staff augmentation
a hiking trend for companies.
13. Now that you have a clear idea about
resource and staff augmentation, it’s time
to get a brief about the variety of its forms.
In fact, staff augmentation comes in
different types. Considering this,
understanding which one of the forms you
require is vital. Besides saving you time,
resource and staff augmentation saves tons
on the cost of staff recruitment as well.
Below are 6 types of staff augmentation in
use.
14. There are many Myths About IT Staff
Augmentation spread in the market, which
are incorrect. You must figure out the right
thing to do and take your business to the
higher frontier.
16. Resource and Staff Augmentation is all
about a firm that specializes in an incredible
skill set to complete a project. When
Startups opt for staff augmentation, they
achieve a number of benefits. Here is a list
of 5 Reasons why Startups need staff
augmentation.
1. Meets The Strict
Deadlines
Generally, most development projects are
carried out on an urgent basis. This further
denotes that your company must meet the
strict deadlines tagged along with it. As a
result, companies fail to meet deadlines
most of the time due to a lack of additional
resources.
17. Among all, the worst part is that the hiring
process takes around 20 to 25 days. This
further indicates that you can lose an
important project while finding a
competent staff. With robust staff
augmentation, businesses acquire breathing
room. Consequently, they can easily align
external teams to work on urgent projects.
In addition, hiring managers will save time,
resources, and energy spent in searching,
hiring, and training skilled and qualified
candidates for the job.
18. If we speak about in-house staff, startups
need to bear loads of overhead costs. These
costs include paid wages, benefits,
insurance, taxes, training, paying for
management and supervision, etc. When
startups opt for staff augmentation, it
enables them to cut down the overhead
costs of business. Companies can cut costs
associated with several administrative
functions. Furthermore, Startups don’t need
to deal with unemployment as well.
2. Cost-Efficient
19. An ideal staff augmentation is a team that
owns all the expertise and skills that your
business needs. Simply put, different
projects call for different skills and
experiences. Initially, startups might not
hold particular expertise to bridge the skill
gap. However, with staff augmentation,
companies can gain innumerable benefits.
Resource Augmentation offers viable and
innovative solutions to bridge all the skill
gaps present in project teams.
3. Facilitates Specialized
Skill Gap
20. Generally, if you see closely, you might feel
that outsourcing your project development
or services results in losing control over the
development process. However, with staff
augmentation, companies can retain entire
control over every major determining
factor of the project. Startups can decide on
who will oversee the project, and they can
set timeliness as well. Every activity takes
place under your supervision and sets
guidelines.
4. You Have Full Control
21. With resource and staff augmentation, IT
hiring managers still have space to allot
specialized teams around particular
expertise, skills, products, and technologies
for distinct deadlines and projects. It
enables companies to respond to end
contracts, make changes, and prioritize the
room for growth. Startups get more
flexibility in their work process with staff
augmentation.
5. Flexibility
24. Bear in mind that augmented services are a
form of outsourcing. Hence, this approach
holds several drawbacks when it comes to
employment. Below are 3 major sensitive
areas and hurdles concerning resource and
staff augmentation that you need to look at.
25. 1. Managerial hurdles
Training in-house staff:
Staff Augmentation is all about outsourcing.
In other terms, this denotes that your
employees will not work in your office.
Under such circumstances, it is important
to establish an effective management and
communication channel to keep the
augmented staff and in-house team well-
grounded and tuned with each other. Well-
tuning facilitates effective project
completion. If there are hurdles in
management, the project process is more
likely to turn cumbersome, error-prone,
and inefficient for both teams, thus
resulting in poor performance and solution.
Your in-house team must have prior
training to manage your augmented staff.
This practice will get your task
management aptly organized.
26. If the task streams are complicated and full
of hassle, it may end in duplication of tasks,
dispute of responsibilities and roles, and
several other needless barriers to
productivity.
2. Privacy risks
Outsourcing tasks call for a huge amount of
trust. You need to forgo the entire privacy
of your corporate information and data
secured under privacy rules in your office.
When it comes to efficient and flexible staff,
security plays a huge role. The security and
privacy of the client and project are
significant and must not be risked.
Talking about staff augmentation, security
is a prime concern. Staff augmentation
business models involve interacting with a
third party and incorporating them into
their internal operations.
27. Staff augmentation firms should take up
frequent security audits to rectify the issue
of security hazards and threats. Alongside,
they should follow all the protocols for
gaining NDAs signed after incorporating the
augmentation staff to ensure total security.
3. Communication issues
Collaborating with a remote workforce is all
about effective communication and brilliant
management techniques. Thus, it is
essential to establish a well-grounded
communication channel to facilitate a
smooth, easy, and robust workflow even if
the work environment is distributed.
28. However, communication and management
become a major challenge for a lot of in-
house employees. Most of the time, clients
face poor communication due to language
barriers. Eventually, companies undergo
misunderstandings during the project
development due to an inferior level of
English. On a good note, companies can
avoid this problem by consulting directly
with a company representative, checking in
with the vendor’s English level, or
communicating with every staff member.
Besides communication problems, another
issue involves the time zone. However, you
can control this issue by establishing a
worthy meeting schedule that enables you
to set up seamless communication.
30. Once you decide to opt for a Software
Development staff augmentation, the
immediate next step you should consider is
choosing the augmented model’s nature.
Below are 3 major things that you need to
consider before finalizing your staff
augmentation model.
• Analyze the duration of your project.
Check if it requires less than 6 months. In
case it does, staff augmentation will be
perfect for you. However, if your project
duration exceeds for a longer period, you
might need other models.
• Examine the sensitivity and intensity of
data that you will require to disclose. It is
always reasonable to sign an NDA for staff
augmentation contract with all developers
and vendors. Take time to look into all the
risks involved in disclosing data.
31. • Determine all the costs of training
involved.
Calculate the costs for three cases and
compare:
1. When your in-house team collaborates
with augmented staff
2. When you hire a dedicated team
3. When you outsource the entire project.
At times, staff augmentation might not
deliver efficient results if management and
several other factors are poor.
That said, an excellent strategy to avoid all
the unseen troubles includes a valid
agreement on staff augmentation with an
NDA clause following the calculations of
costs involved in it.
33. The bitter truth of the online competitive
market is to have a robust and expert
development staff to gain the ultimate
success. The more talented staff
organizations have, the better revenue they
generate. In addition, every month, we see
new technologies and programming
languages entering the market. Hence,
organizations and startups that are flexible
enough to gather the expertise and embrace
the latest trends with a smart hiring
approach are doomed to success. As you
wish to join the league of such an elite
group of successful organizations, Bacancy
Technology is the choicest preferred
development partner that follows Agile
methodologies that will serve your IT staff
augmentation services needs.