Leveraging Global Power with IT Staff Augmentation: How Your Business Can Benefit

In 2022, 76% of employers worldwide faced challenges in finding skilled talent to meet their technology demands, as reported by ManPower Group. In the USA, the talent gap within the IT industry reached a significant 78%.

Under such circumstances, coupled with the increasing demand for IT talent, staff augmentation becomes a lifeline for businesses. Nowadays, more and more companies turn to IT staff augmentation firms to seek the right talent for their projects. Indeed, according to a report by Market Reports World, the global IT staff augmentation market is projected to reach $147.2 billion by 2028, with a growth rate of 7.6% from 2021.

So, if your business is hoping to enhance the tech workforce via third parties, look no further. In this article, we’ll explore what IT staff augmentation is, its types, benefits, potential drawbacks, when to apply, and more.

Let’s jump right in!

What is IT Staff Augmentation?

IT staff augmentation is a strategic solution in which an external workforce is brought in temporarily to tackle project tasks, bridging gaps and ensuring timely project completion.

It operates as a hybrid model, seamlessly integrating the expertise of both in-house teams and external specialists, with each entity typically assigned distinct project components.

One of the key advantages of this approach lies in its flexibility. Augmented staff function as an extension of the in-house team, without the commitment of full-time employment. They only step in when needed, aligning with your project demands, and are compensated accordingly.

This not only streamlines budget allocation but also simplifies the disengagement process, as the partnership operates on a per-project or per-engagement basis.

Especially for businesses encountering sudden spikes in demand for specific skill sets, IT staff augmentation emerges as the optimal solution. Let’s say, your healthcare software development project requires the expertise of 5 additional developers, while your in-house team can only provide 3 members.

Instead of struggling with prolonged hiring processes, staffing augmentation enables you to swiftly integrate external talent into the core team, minimizing associated costs and risks and guaranteeing timely project delivery.

Types of IT Staff Augmentation Services

Now let’s explore 8 different types of staff augmentation models, categorized based on two key criteria: engagement level and location.

Based on engagement level

• Project-based staff augmentation: Suitable for companies seeking software developers or engineers for specific projects within defined timelines.
• Time and material-based staff augmentation: Ideal for securing third-party developers for designated time periods, ensuring seamless project continuity.
• Hybrid staff augmentation: Integrating different augmentation approaches above to craft bespoke solutions tailored to unique organizational needs.
• Dedicated team augmentation: Recruiting an exclusive development team devoted solely to the organization’s projects, delivering a high level of proficiency and specialization.

Based on location

• Onshore staff augmentation: Hiring IT professionals from the same country as your company, facilitating smooth communication and collaboration.
• Nearshore staff augmentation: Recruiting a development team from nearby countries, fostering synergy through shared time zones and cultural similarities.
• Offshore staff augmentation: Engaging IT professionals from different countries, often characterized by huge time zone differences, offering a cost-effective augmentation strategy.

Sitting on the fence choosing nearshore or offshore options for a development project? Check out Nearshore vs offshore software outsourcing: Which is better?

Benefits of IT Staff Augmentation

With IT staff augmentation services, organizations can enrich the existing team with seasoned professionals adept at addressing different complex business issues.

Let’s take a closer look at 5 notable advantages that this hiring approach offers.

• Access to top IT talent

By embracing augmentation staffing, businesses in any industry can gain access to a pool of top-tier IT personnel, transcending geographical constraints. This enables them to onboard individuals with specialized expertise, precisely tailored to their project requirements.

• Significant cost savings

By bypassing the expenses associated with traditional recruitment processes, including hiring, training, and retaining full-time employees, software team augmentation translates to substantial cost savings.

Especially in the long run, opting for external professionals on a flexible, as-needed basis has proved to be economically advantageous.

• Maximum flexibility

The inherent flexibility of this outsourcing approach empowers companies to effortlessly scale IT team according to project demands. Whether it’s bolstering resources for particular projects or ramping up team capacity during peak workloads, IT staff augmentation seamlessly adapts to the evolving needs.

• Reduced risks

Engaging external staff mitigates numerous risks associated with onboarding new full-time employees. This makes it possible for your company to evaluate performance and cultural fit before committing to permanent hiring decisions, thereby minimizing organizational liabilities.

• High productivity

One of the most significant features of software development staff augmentation is its ability to foster high productivity.

Unlike outsourcing teams managing multiple projects concurrently, augmented teams offer your project undivided focus, channeling 100% of their time and energy towards achieving the best outcomes possible.

Drawbacks of IT Staff Augmentation

While staff augmentation solutions can bring significant cost savings and operational efficiency to the table, it’s important to be mindful of several challenges related.

Here, we outline 4 key obstacles that companies may encounter when collaborating with an IT support services provider:

Security concerns

Navigating security risks is a significant challenge when engaging remote developers or contractors, who may lack the same level of access controls as full-time employees. This discrepancy heightens the risk of security breaches and regulatory non-compliance, which might jeopardize both your reputation and financial stability.

Mitigating such risks necessitates robust measures, including the implementation of non-disclosure agreements (NDAs) to uphold data confidentiality.

Additionally, firms should consider applying stringent security protocols and comprehensive background checks to ensure the reliability and trustworthiness of augmented staff.

At LTS Group, a leading IT staff augmentation firm in Vietnam, security is our top priority and we safeguard your data through different measures, notably by enforcing NDAs and empowering our clients to conduct thorough candidate evaluations for a secure partnership environment.

Quality control

Oftentimes, in case of team augmentation, opting for cost efficiency at the expense of quality can backfire, leading to substandard outcomes, project delays, and compromised security standards.

However, adopting rigorous quality control measures can help mitigate these risks. Typically, by scrutinizing the competence and track record of augmented staff through client feedback and performance evaluations, organizations can better ensure the consistent delivery of high-quality results.

Recognizing the paramount importance of deliverable quality, LTS Group integrates strict quality control checkpoints into our workflow. By facilitating early performance evaluations and continuous feedback loops, we make sure that our clients receive high-quality outcomes consistently, thereby fostering success and satisfaction in all your projects.

Language and time zone

Another big challenge in staff augmentation is the language barrier, which can lead to misunderstandings during project development due to varying levels of English proficiency.

Nevertheless, this obstacle can be easily minimized by carefully assessing the language skills of your potential candidates or consulting with company representatives to set up clear communication channels.

Additionally, aligning meeting schedules to accommodate different time zones can also help facilitate seamless communication for the maximized value of resource augmentation.

When collaborating with LTS Group, organizations can rest assured that all engineers in our talent pool are carefully selected to be fluent in their native language. Additionally, for remote collaborations, we supply required equipment and establish effective two-way communication channels, eliminating any time zone-related disruptions.

Technical expertise

Another major concern in staff augmentation is the risk of hiring employees lacking adequate technical expertise, leading to poor performance and project delays.

To reduce this risk, interviewers should carry out a comprehensive candidate selection process. Beyond reviewing portfolios and references, businesses should also consider assigning pilot tasks to evaluate candidates’ ability to meet business objectives in real-life scenarios.

Partnering with us guarantees a transparent recruitment process, enabling you to directly interview and assess each candidate’s qualifications. This meticulous approach ensures the selection of the most suitable candidates, aligning with your project requirements and cultural considerations.

Comparing Staff Augmentation with Other Staffing Solutions

As discussed earlier, IT staff augmentation is a powerful outsourcing model for effectively acquiring the talent you need. However, it’s just one among various staffing options available.

Let’s explore the differences between these models and determine which one is your best fit.

Staff augmentation vs. managed services

The primary difference between IT staff augmentation and managed services lies in the level of control the client holds.

With staff augmentation, the client delegates only the task of providing necessary staff to the vendor, keeping the rest of the operation under their control. In contrast, managed services involve the vendor assuming complete control over the client’s non-core systems, managing all aspects of operations while simultaneously providing talent.

In other words, managed services offer a higher degree of delegation, making them ideal for companies seeking to streamline resource allocation and focus on strategic priorities.

Besides, unlike staff augmentation, managed service providers often have pre-assembled developer teams ready to handle projects immediately after contract signing, reducing wait times for recruitment.

Staff augmentation vs. dedicated teams

Though similar in concept, staff augmentation and dedicated teams differ significantly in terms of vendor responsibility. With staff augmentation, clients directly manage remote developers, while dedicated teams operate under the vendor’s supervision.

Also, in dedicated team setups, the vendor oversees salary reviews, whereas in staff augmentation arrangements, clients manage this aspect.

Staff augmentation vs. outsourcing

In contrast to staff augmentation, IT outsourcing involves entrusting an external entity with the entire project, giving it full control over your organization’s execution, thus offering a lower level of flexibility and management.

Staff augmentation, on the other hand, is ideal for companies seeking specific expertise to augment their existing team temporarily. With staff augmentation, you retain control over your projects, ensuring they are executed according to your requirements and timelines.

In summary, while each staffing solution offers unique advantages, staff augmentation provides the flexibility and control necessary for companies to bolster their teams effectively while retaining ownership of their projects.

When Should You Choose IT Staff Augmentation?

Making the right call on when to expand your team is crucial for business success. Here are 5 scenarios where staff augmentation should be your next hiring strategy.

• Need to meet deadlines 

Traditional recruitment can be a lengthy process, taking up to two months on average from job posting to onboarding. If you’re pressed for time and can’t afford to wait, staff augmentation is a perfect solution. It grants you instant access to a global talent pool of seasoned IT experts, thereby swiftly enhancing your IT team to meet project deadlines, whether your needs are short or long-term.

• Need to fill skill gaps 

Chances are your company might have multiple projects underway, each requiring different skill sets. Therefore, adapting dynamically to changing demands is inevitable.

Staff augmentation helps companies recruit experienced developers, testers, and other required positions with specialized skills, tailored to the specific requirements of each project. This saves time, energy, and resources that would otherwise be spent on training in-house employees for these fleeting skills.

• Need to quickly expand your team 

When you urgently need a local expert in areas like blockchain development or AI development, the conventional hiring process proves to be extremely time-consuming. Staff augmentation streamlines this process, allowing you to quickly review resumes, conduct interviews, and onboard skilled IT professionals as needed.

• Need more flexibility 

In need of a software engineer for just one day or one task? Staff augmentation comes to the rescue!

Unlike standard hiring methods, staff augmentation offers unparalleled flexibility. Organizations can easily adjust their team composition according to project requirements, bringing in additional members as required and scaling down when tasks are completed.

• Have a tech-savvy manager on your in-house team 

While staff augmentation gives you control over your augmented staff’s product development and team management, challenges can still arise, even with highly skilled individuals.

Without a tech-savvy manager, ensuring quality control may be compromised, potentially impacting the quality of your project deliverables. Therefore, having a tech-savvy manager on your in-house team is of great importance to ensure smooth coordination and comprehensive oversight of your augmented resources.

How to Choose the Right IT Staff Augmentation Service Provider?

Now that you’ve grasped the fundamentals of staff augmentation, let’s quickly go over 10 essential steps to choose the perfect staff augmentation partner for your business.

Step 1: Identify your requirements

The first and foremost step in choosing the right staff augmentation partner is clearly outlining your specific needs.

To do that, you might consider asking yourself a few important questions like:

• What’s the scope of the project or role you need help with?
• What skills and expertise are needed?
• Is the project short-term or long-term?
• What’s your budget for staff augmentation services?

This way, you’ll lay the groundwork for a successful partnership that aligns well with your business expectations.

Step 2: Conduct research and create a shortlist 

Once your requirements are clear, begin researching potential staff augmentation providers. You can do this by exploring various sources like online platforms, professional networks, and recommendations to compile a shortlist of prospective IT staff augmentation companies.

Step 3: Assess experience and expertise 

When evaluating potential partners, focus on their experience and expertise in your required area. Whether it’s AI, software development, or another field, you should prioritize partners with a proven track record in that relevant domain. Also, don’t forget to review their portfolio and past projects to confirm they possess the necessary skills to meet your needs.

Step 4: Verify references and reviews 

One of the most effective ways to assess a partner’s capabilities is by speaking with their previous clients. You might consider communicating directly with past clients to understand their experiences, the quality of work delivered, and their satisfaction levels. You might also try browsing online reviews and testimonials for more insights.

Step 5: Evaluate data security measures 

Data security is vital for most organizations, especially when dealing with sensitive information. If your project contains such data, make sure your staff augmentation service provider has all the data security measures in place.

Besides, don’t hesitate to reach out and inquire about:

• their data security procedures,
• encryption methods,
• compliance with industry standards

to ensure the confidentiality and safety of your information.

Step 6: Review communication quality 

Effective communication is key to successful staff augmentation. Thus, you should carefully evaluate how well your potential partner communicates with you during this selection process. We highly recommend you look for openness and transparency in their communication style, as these qualities are vital for a productive partnership.

Step 7: Explore engagement models

Engagement model also plays an important role in fruitful staffing augmentation, so don’t overlook different engagement models offered by your potential partners. For the best results, they should be flexible and adaptable to your preferred working style and company culture.

Step 8: Consider pricing and budgetary factors 

Another important factor is your budget and the pricing structure of your potential partners. This will help you determine an appropriate IT staff augmentation cost that fits your financial capabilities. Keep in mind that the cheapest option may not always be the best.

Instead, it’s better to focus on the value you’ll receive for your investment.

Step 9: Ensure legal and regulatory compliance 

Legal issues should also be kept at bay, so ensure that your staff augmentation partner complies with all relevant laws and regulations, especially if you’re considering international collaborations.

Step 10: Make your final decision 

After thorough research and evaluation, time to make your final selection! Here, just remember your chosen partner should have the capability to meet your project needs, offer all of your required IT staffing services, and be a good fit for your organization’s business objectives.

FAQs about IT Staff Augmentation

What is staff augmentation service?

Staff augmentation is a strategy where you temporarily hire external workers to fill skill gaps or meet project deadlines.

What are the benefits of IT staff augmentation?

IT staff augmentation is a cost-effective and flexible way for organizations to access the expertise they need in a short amount of time. Some of its major advantages are:

• Access to top IT talent
• Significant cost savings
• Peak flexibility
• Reduced scope of risks
• High productivity

What are the types of IT staff augmentation?

There are different types of IT staff augmentation solutions.

• Based on the engagement level: project-based, skill-based, time-based, dedicated team, and hybrid staff augmentation.
• Based on location: onshore, nearshore, and offshore staff augmentation.

How does IT staff augmentation work?

At LTS Group, a leading IT staff augmentation company in Vietnam, here’s our staff augmentation process:

Firstly, upon your request, we initiate by signing a non-disclosure agreement to ensure mutual data confidentiality.

Then, you share your talent requirements and expectations with us. We carefully select and present you with profiles of the most suitable candidates for your review.

After that, we arrange personal interviews between you and the top matches. You continue by evaluating the candidates’ qualifications and suitability using your preferred approach.

Once you’re satisfied with the candidates, we proceed to sign an official contract to formalize our collaboration.

It’s time for onboarding! We prepare the candidates for onboarding and establish communication channels for remote work, if necessary.

During the initial period, we closely monitor the performance of your dedicated developers to ensure they meet your expectations. With your feedback on their work quality, you can make necessary adjustments accordingly.

As your project progresses, you may require additional software engineers to support your initiative. Simply reach out to us, and our recruitment team will swiftly assist you in filling any vacant roles with top-notch IT specialists.

What are some IT staff augmentation examples?

Here’s a quick staff augmentation example: Suppose you need to update your internal CRM system, but your current team lacks the necessary expertise. Instead of going through the traditional hiring process, you approach a software development staff augmentation vendor.

The vendor handles your team augmentation by selecting skilled engineers with relevant experience. They then provide you with their candidates’ resumes for your review. The person in charge can interview the chosen experts and proceed with hiring them through a contract agreement.

Final Thoughts about IT Staff Augmentation

Recruiting new talent can be a hassle, and the results are often unpredictable. That’s where IT staff augmentation comes in handy. It offers a solution to these challenges by allowing you to onboard skilled talent without long-term commitments. By hiring flexible talent, you can streamline your operations and gain better project oversight without the hassle of paperwork or complex procedures.

If you’re on the lookout for a reputable IT staff augmentation company, LTS Group is here to help. We offer comprehensive support throughout the entire process, giving you immediate access to IT experts and engineers to efficiently execute your projects.

• Website: https://ltsgroup.tech/
• Tel: (+84) 24-6660-7474
• Fanpage: https://www.linkedin.com/company/lts-group-vietnam/