Advantages of IT Staff Augmentation for Startups
Outsourcing isn’t new to the world of business. According to Statista, the global outsourcing industry hit 92.5 billion USD in 2019. With outsourcing evolving, numerous remote collaboration forms, such as IT staff augmentation services, are becoming increasingly common.
Staff augmentation services expand and strengthen an in-house team by hiring remote experts who have specialized skill sets perfect for your project. It means a startup can bridge the expertise gap by contracting additional talent with different levels of skills and competencies.
Now, you're probably wondering: "How is it different from other outsourcing models?" The major difference is who bears the responsibility of project management and takes care of the project's results. For example, in IT project outsourcing, the vendor covers all aspects of product development, from hiring talents to managing projects.
In the case of establishing an R&D center in an outsourcing country, you should have a good understanding of this country's legislation, be aware of all its cultural specifics, and be responsible for all the risks.
If you choose the staff augmentation route, you'll eliminate the hassle of headhunting, payroll management, and other organizational activities — your provider handles them. All that is required of you is the management of your external experts, just like your in-house team.
Staff augmentation is in great demand now. This increasing interest is not surprising as tech startups realize the benefits of this approach. The key benefits of staff augmentation are efficiency, convenience, and profitability. Along with that, there are other significant benefits of staff augmentation services. Let's take a closer look at how to take advantage of IT staff augmentation to be at the top of your competitors' list.
Cost-Effective Hiring Strategy
One of the main benefits of IT staff augmentation is a cost-efficient hiring strategy. There is no need for a lengthy process of searching and hiring talent. Using this strategy, you can significantly reduce the cost and time spent searching, hiring, and training new staff.
Usually, IT staff augmentation vendors take care of finding and recruiting the required experts. Your remote staff augmentation partner prepares a list of specialists so you can review and choose the outstanding talents. To make sure the candidates meet your expectations and have the required expertise and skill set, you can hold competency-based interviews or conduct aptitude tests.
Ability to Hire High-Level Experts Fast
As a tech startup, it may not be so easy for you to find high-quality technical experts for your specific project locally. Now, there is no need to be limited to one location and specialists who are not well-suited to your project requirements. One of the most significant advantages of staff augmentation is a variety of top-notch experts with exceptional skills worldwide. Therefore, IT staff augmentation not only widens the selection pool but allows startups to find candidates at lower rates. As a result, you get 100% dedicated experts who address any weaknesses in your team and speed up product time to market.
More Transparency and Control over the Development Process
Many outsourcing models involve losing control over operational effectiveness, development process, and results. But not for staff augmentation services. Using this approach allows startups to be aware of the ongoing project status, monitor progress, and keep maximum control over the development process — no third parties in your workflow. That means you get full transparency since you directly communicate with your remote team and share useful information.
Ability to Cut Administrative Costs
Startups can take advantage of remote staff augmentation since this cooperation model allows cutting expenses without sacrificing quality. Just see for yourself: when using this technique, you do not need to pay any administrative and operating costs. You don't have to pay for office space and equipment, HR services, sick leaves, salary package, days off, vacations, maternity, legal documentation, etc. Moreover, different countries have different wages, so you can choose a vendor that fits your budget.
All you have to do is pay for the time experts spent working on your project. With staff augmentation services and the right talents, you can avoid administrative costs, focus on your business goals, and invest in business scaling.
Flexible Adaptation to Market Fluctuations
One more substantial importance of IT staff augmentation is flexibility. With this cooperation model, it's relatively easy to change team size by scaling up and down according to project requirements and market fluctuations. For a fast-paced IT tech startup, more flexibility can be a competitive edge. That's because they can take up projects of any size and complexity without risking their product quality and productivity.
For example, your project requires new technological expertise like Blockchain, and there is no such specialist in your in-house team. In comparison, a staff augmentation company works on different projects in various industries and has a wide selection of experts in specific technologies. In this case, the staff augmentation model becomes a silver bullet.
Being flexible and adaptable to market fluctuations and business conditions is a must for tech startups today.
Fresh Opinions and Ideas for Your Project
An opportunity to get a fresh pair of eyes is always a great idea, isn't it? The IT staff augmentation model is an excellent way to get the best-of-breed services and bring a fresh perspective to your project. Augmented employees can look at your project, business idea, or current challenges from a new angle and offer new approaches and out-of-the-box thinking.
Since your team’s external members regularly deal with various types of difficulties, they can offer unique solutions to your existing issues. So don't miss the chance to get their feedback to improve your project.
Staff augmentation vs. outsourcing
If you’re still hesitating to use staff augmentation services in your business, look at the table below. It demonstrates the main advantages of using IT staff augmentation services and can help navigate the decision-making process.
Client’s in-house team + service provider’s staff
Service provider’s staff
Service provider searches for specific dedicated and required talent
The team’s ready to go
Choice of technology
Limitation of skills and expertise due to
Service provider’s capability
Office equipment & workspace
Via service provider’s PM
Responsibility for risks
As you’ve seen, IT staff augmentation services provide startups with numerous benefits. In the contemporary world, the demand for skilled tech experts is growing at a tremendous pace. Consequently, a growing number of tech startups resort to this strategy for a good reason. Using this model, you get lower development and administrative costs, no hiring and HR hassles, increased efficiency, more flexibility, transparency, and immediate competitive advantage. Sounds great, right?
So, if you’re ready to take advantage of IT staff augmentation, try Remotal staff augmentation services. We find ideal remote tech talents that let your startup reach the sky on time and within budget!