Businesses invest into technologies to become digital, more competitive, and keep up in the market. Staff augmentation gives them a smart tool for finding skilled IT experts for software development projects to fill skill gaps, speed up project work, and stay competitive. We offer our guide to explain IT staff augmentation and help US companies use this helpful staffing solution in the most beneficial way for their digital projects.
Models of Cooperation for Remote Staffing
There are a few different models of cooperation generally combined under the topic of remote staffing.
Staff Augmentation | Staff augmentation is a flexible hiring model in which a company hires external talent to fill in skill or capacity gaps within the in-house team. This approach allows businesses to scale their workforce quickly based on project requirements and workloads. The external team members participate directly in the workflow alongside in-house employees, reporting directly to the company’s management while integrating into the company’s culture and processes. |
Outstaffing | Outstaffing is a hiring model in which a company hires dedicated external professionals to work exclusively on its projects. Although they are legally employees of an external provider, outstaffing team members devote all their time to a single client's projects. In this model, the client manages the outstaff directly and has complete control over their tasks and workflows. Outstaffing is ideal for long-term projects that require specialized skills and a high level of client involvement. |
Outsourcing | Outsourcing is a business practice when a company delegates a particular part or entire project to an external service provider. Unlike staff augmentation or outstaffing, the external team is managed by the partner and takes full responsibility for delivering the whole outsourced project or service. The client focuses on core business activities while the outsourced team handles the outsourced tasks or projects independently. |
Nearshoring | Nearshoring refers to a combination of the above outsourcing, outstaffing, or staff augmentation practices with a focus on nearby countries or regions. The advantage of nearshoring lies in geographical proximity, which often translates into similar time zones, cultural similarities, and ease of travel for meetings. |
Offshoring | Offshoring involves outsourcing business workloads to companies located in distant countries, typically in regions with lower labor costs. It is a cost-effective model that allows businesses to leverage global talent and achieve substantial cost savings. |
Understanding the IT Staff Augmentation Model
IT staff augmentation helps boost your current teams by adding skilled IT talents from outside for special projects and/or specific periods. These professionals can fit right into your company's setup and work style. They work under your management.
This cooperation model differs from traditional outsourcing, where you entrust a service provider with overseeing the delivery of projects. With staff augmentation, you keep control over your projects and teams while using individual remote experts.
This method is incredibly convenient when companies need specific skills for a short period or specific workstream. This could include software development, data analytics, cloud computing, cybersecurity, or AI/ML projects. It is a smart strategy to fill skill gaps, save on project costs, increase capacity, and stay ahead in today's market.
NOTE! According to Forbes research, the fastest-growing potential demand for experts in the US IT industry is:
- Information security analysts (projected 32% growth from 2022–32);
- Software developers, QA testers (projected 25% growth);
- Computer and information research scientists (projected 23% growth).
Benefits of IT Staff Augmentation for Businesses in the US
The US market for IT staff augmentation is strong because this specific model of cooperation offers a flexible and cost-effective solution for companies looking to keep up with delivery. Businesses choose to work with IT staff augmentation companies because it helps them access a wide range of diverse, skilled software development experts without having to deal with the overhead of hiring and training.
On top of that, staff augmentation allows companies to quickly adapt to changing market demands and technologies.
In short, the IT staff augmentation is a smart way for U.S. companies to manage skill or capacity gaps. It helps companies acquire specialized skills, improve project delivery, and remain competitive in a rapidly changing environment.
Here are the key benefits:
- Reduced Operational Costs: Augmented staff cuts down costs linked to traditional hiring. This includes recruitment fees, benefits, health insurance, training, office space, equipment, and other overhead. Companies can use their resources better, which boosts project returns on investment and allocates more time and resources to focus on core business activities.
- Enhanced Project Management: Bringing in experts helps teams manage projects better. This leads to shorter project timelines and smoother workflows. With experienced IT professionals, planning and executing projects becomes easier and more efficient.
- Increased Scalability and Flexibility: Staff augmentation allows businesses to grow their teams quickly when needed. This flexibility helps them respond better to market changes and seize new opportunities. Companies can refuse team augmentation services when they reach their goals.
How to Make the Most of Staff Augmentation?
To get a head start and prepare your company to fully leverage the benefits of staff augmentation, the following points are key to keep in mind:
Define Clear Project Goals and Requirements | Before engaging with a staff augmentation vendor, clearly outline your project goals, skill requirements, and timelines. It'll help ensure that the professionals you invite will be aligned with your business objectives and can integrate seamlessly into your team. |
Choose the Right Augmentation Partner | Select a reputable staff augmentation company with a track record of success in your industry. Evaluate their expertise, candidate pool, portfolio, and client feedback to find a partner that matches your technical and cultural needs. |
Establish Strong Onboarding and Knowledge Transfer | Provide a thorough hiring interview and then onboarding to share your company's processes, standards, and culture with the new team member. |
Integrate External Talent Effectively | Treat augmented staff as an extension of your team, providing them access to necessary resources, tools, and platforms, and include them in meetings, daily standups, and communication channels to maintain alignment. |
Maintain Clear and Open Communication | Effective communication is key to maximizing the benefits of staff augmentation. Establish clear reporting structures, regular check-ins, and feedback mechanisms. |
Monitor and Evaluate Performance | Regularly track the progress and performance of your augmented staff against project milestones and goals. |
Virtido IT Staff Augmentation Services
Virtido is an innovative outsourcing and IT staff augmentation provider based in Switzerland with multiple locations in Eastern Europe (EU and non-EN) as well as the Philippines. With a high commitment to delivering compliant and high-quality solutions, Virtido brings a high level of expertise in turn-key software development (from prototypes all the way to enterprise products) as well as a track record of 500+ successful remote staff-augmentation placements over the past 9+ years.
We offer our clients flexible cooperation models from staff augmentation through outsourcing to provide cost-effective ways to achieve our clients goals.
Virtido’s offering spans various services, including software development, business process outsourcing, and IT staff augmentation.
Extra Experts to Your Existing Project
Strengthen your current project team by adding highly specialized talent to meet deadlines and achieve high-quality results. With our IT staff augmentation service, you can add tech expertise and efficient talent at every stage of your delivery cycle and address specific business requirements.
Outsourcing Vendor
If you need a new technology partner to drive your solution forward, we facilitate a seamless and efficient transition to our outsourcing teams. Our dedicated teams can take over your ongoing project at any stage, ensuring continuity and minimizing disruptions.
Short-Term Staff Augmentation
For urgent tech hiring needs, our short-term staff augmentation model provides rapid access to skilled professionals. We can offer highly skilled experts ready to join your complex projects within a week, allowing you to extend your in-house development team and scale quickly.
Long-Term Extended Team
We specialize in custom recruitment for long-term successful collaboration and help hire software engineers with the precise skills required for your projects. You or your project manager can oversee the tasks while we manage administrative responsibilities, ensuring seamless integration, direct communication, and stable cooperation.
Which IT Industry Trends are Guiding Staff Augmentation?
Increased Demand for Specialized Skills
The tech market inspires changes in workflows and a growing demand for professionals with specialized skills in areas like cybersecurity, cloud computing, data science, AI, and machine learning. Staff augmentation lets you find highly skilled professionals to fill specific roles without the long-term commitment of hiring full-time employees.
Shift to Remote Work
Remote work as a trend has expanded the talent pool globally, enabling companies to access professionals regardless of their geographical location. Staff augmentation models also focus on remote team integration, ensuring seamless collaboration across time zones.
Agile and DevOps Methodologies
Adopting Agile and DevOps practices in software development has increased the need for flexible staffing solutions. Staff augmentation enables companies to scale their teams rapidly and efficiently, bringing in experts who can adapt quickly to agile workflows and contribute to shorter development cycles.
Agile methodology is a project management approach in software development based on flexibility, collaboration, and iterative progress. It focuses on delivering small, functional project parts rather than completing the entire project at once. Agile is all about adaptive planning and continuous improvement with flexible responses to change.
DevOps methodology combines software development (Dev) and IT operations (Ops) to provide collaboration, automation, and efficiency within the software development lifecycle. DevOps aims to streamline the overall process of building, testing, and releasing software.
Focus on Cybersecurity and Data Privacy
Companies are prioritizing cybersecurity and data privacy with widespread data breaches due to hackers' attacks. Staff augmentation experts can provide cybersecurity techniques and enhance data safety, ensuring compliance with data regulations.
Digital Transformation Initiatives
Businesses choose to undergo digital transformation to stay competitive in the market. This shift leads to engaging technical skills for implementing new technologies, automating processes, transforming legacy systems, and improving customer experiences. Staff augmentation helps companies build teams of experts to support and accelerate digital transformation projects.
Artificial Intelligence and Automation
AI and workflow automation transform many industries, so businesses seek experts to implement and manage these technologies to cut expenses on repetitive efforts and help in-house employees have time on concerns about successful strategy. The staff augmentation approach covers acquiring professionals skilled in AI, robotic process automation (RPA), ML, and other emerging technologies.
Increasing Complexity of IT Infrastructure
The rapid adoption of multi-cloud environments, hybrid architectures, and IoT solutions has made IT infrastructure more complex. Companies are turning to staff augmentation to bring experts who can effectively manage and optimize these systems.
Final Insights
With almost 10 years of experience in the IT market, Virtido has earned a reputation for delivering highly individual solutions to address talent gaps in engineering organizations.
When choosing Virtido, you will find a partner that understands technology and all the painpoints that come with milestones, planning, budgets, releases, delivery, and ongoing monitoring & maintenance and prioritizes your project progress by complementing your existing staff.
Our expert approach ensures that your software projects are delivered with the required skills, technical expertise, efficiency, and the highest quality standards.
What are typical rates for staff augmentation?
The rate for staff augmentation depends on several factors, including the skills required, the location and experience of the professionals, and the duration of the project. Companies typically charge on an hourly or day basis, depending on the contract model.
What is augmentation in the workplace?
In the workplace, augmentation is the addition of external talent to the existing team to increase productivity or meet project requirements without the need for a permanent position.
What is the difference between staff augmentation and contractors?
Employing external experts through a third party to supplement your current team under the direction of your internal leadership is known as staff augmentation. Conversely, contractors are usually hired for specific projects or tasks and work independently with limited integration into your team.
What is staff augmentation vs. consulting?
Staff augmentation focuses on providing skilled personnel to fill roles within your team, acting under your guidance, and avoiding hiring process efforts. Consulting services mean external experts who provide strategic advice and solutions to specific business problems, often overseeing or directing aspects of the project.
What is another word for staff augmentation?
Common terms for staff augmentation are team augmentation, workforce expansion, or resource augmentation. It’s also sometimes referred to as team extension.
What is the IT staff augmentation process?
The IT staff augmentation process typically helps identify specific skill gaps, source candidates or create job postings, conduct technical assessments, onboard, and integrate external professionals into your team to support project goals. Usually, companies find a staff augmentation company in the market with the proven track record and potential to cover the routine of the staff augmentation process.
Is it IT staffing or staff augmentation?
IT staffing is a broader term encompassing the hiring process for IT professionals on a constant or temporary basis, whereas staff augmentation specifically refers to temporarily hiring experts to complement existing teams.
What is tech staff augmentation?
Tech staff augmentation is temporarily adding specialized IT professionals to your team to fulfill specific technical needs: software development, QA, cybersecurity, AI, ML, or data analytics.
What is an example of staff augmentation?
An example of staff augmentation is hiring a range of individual specialists through a third-party partner to accelerate product development and your existing in-house team.
What are staff augmentation roles?
Staff augmentation roles can vary depending on the project’s requirements. Typical roles include software engineers, front-end or back-end developers, QA testers, UI/UX designers, business analysts, data analysts, project managers, and cybersecurity specialists.
What is the difference between staff augmentation and T&M?
Staff augmentation provides additional team members to integrate into the in-house team and offers the opportunity to fill specific roles. Time and Materials (T&M) is a pricing model where you pay based on the actual time and resources spent on the project. Some companies offer staff augmentation under both fixed-price or T&M models.