The rapidly changing business environment is incessantly increasing the demand for IT experts. Unfortunately, the shortage of quality software developers is also a reality of today’s world.
The solution to this problem is IT staff augmentation or gaining SaaS application development services, which has numerous benefits. In layman’s terms, it is a type of outsourcing service provided by a third party to boost the skills and capabilities of an in-house team.
This article explains the staff augmentation model and how it can help your business. Additionally, you will learn how it will reduce your existing team’s workload and help you focus on your main business.
What Exactly is Staff Augmentation?
Staff augmentation is a method of bringing qualified tech resources into your company to fill a temporary or permanent vacancy. With this option, you can pick candidates that fit your requirements and extend or reduce your augmented staff team at any time. Depending on your needs, staff augmentation providers can give your in-house development team an additional skill set on a short- or long-term basis.
The vendor directly employs these resources. This eliminates the liability and expense of hiring full-time employees. It also means that engineers who work on your project will only be working on one specific project at a time.
Staff Augmentation vs Outsourcing
The term project outsourcing refers to outsourcing a portion or the whole of a project to an external vendor. In contrast, staff augmentation provides a virtual talent pool to complement your local team.
The most significant difference between staff augmentation and IT project outsourcing is that the vendor providing SaaS development services is responsible for managing projects and deliverables. While in the staff augmentation model, the project management is handled by the internal team, and the company is held accountable for results.
Why Do Tech Companies Use Staff Augmentation Services?
Lack of desired technical skills in the market is one of the key reasons why businesses are opting for staff augmentation. Failing to find experienced developers or the best talent in a particular stack or technology is forcing companies to switch to the staff augmentation model.
Having a reliable staff augmentation service provider by your side means you can access a dedicated offshore development team that has the required expertise and talent.
The USA is a good example of how swiftly the demand for quality software engineers is growing. As a matter of fact, it is anticipated that this trend will strengthen across the globe and not just in the USA.
Here are some key benefits of staff augmentation or application development services:
1. A Cost-Effective Solution
It is one of the reasons why companies turn to the staff augmentation model or app development agency. Especially in countries where the standard of living is exceptionally high, companies often have difficulty finding knowledgeable professionals. That increases the cost of taxes, healthcare, and other necessities.
With staff augmentation, you can hire a team from another country, which will reduce costs. In addition, since these services will provide you with highly qualified professionals, you will be able to save on ongoing training costs.
2. Access a Large Pool of Talent
Today’s business world demands that you don’t rely solely on your in-house team. You can be sure your work is not hampered when you have augmented staff on your team. This will enable your business to hire talented and highly skilled professionals for your project.
3. Achieve Operational Efficiency
Startups and small businesses face high operating costs that yield minimal returns on investment. Staff augmentation allows companies to offer flexible working platforms while hiring individuals and teams of professionals. A business that uses staff augmentation experiences a reduction in operational and infrastructure costs.
What You Shouldn’t Worry About as a Staff Augmentation Client?
Staff augmentation has become a popular mode of employment these days. The model is beneficial for companies looking for the best employees for their projects. What are the tasks and responsibilities that this staffing model avoids?
- Training Costs and Recruitment Effort
Hiring a full-time employee with a specific skill set can be a complicated, time-consuming, and expensive process. You can rethink the whole situation with staff augmentation or SaaS application development services and invest in the right areas or save more.
It reduces the costs of advertisements, papers, skills, and resources involved in technical assessments, further training, and other recruitment tools.
Moreover, the staff augmentation company will handle all aspects of HR, payrolls, accounting, and office management for the augmented staff.
- Employee Hiring Procedures and Related Formalities
Hiring an employee involves legal aspects, no matter where you are located. A new team requires office space, hiring an HR department, an accountant, a lawyer, dealing with taxes, etc. Managed services handle all these things for you. Business can be expanded on a whim, and team members can be added flexibly.
- Training and Development Costs for Employees
You should invest in training and development courses when you hire a full-time employee on your software development team so that they are up-to-date with the latest market trends. Staff augmentation, however, eliminates these costs by taking care of them for you.
The benefits of staff augmentation or Software development Company are numerous. Nevertheless, it is important to keep in mind that the success of the project is also determined by how we integrate our new employees into the team.
It is impossible to deny the benefits of staff augmentation. Lately, it has been one of the most effective ways to deal with the shortage of IT talent, especially when projects are short and your business is looking for ultra-fast results while keeping costs low.
However, these augment teams tend to lose their benefits with longer projects. In the case of complex and longer projects, outsourcing will be more effective and beneficial when the software team works remotely.
Some companies, however, specialize in their work and set examples for other businesses. In some cases, it makes sense to hire an augment team. By outsourcing the development, designing, and maintenance of your software project, it’s easy to concentrate on your core business and attain better results.