Staff augmentation as a method of IT Cost reduction
What is staff augmentation? Everybody, both at your company and in the world, has their talents. IT Staffing augmentation allows you to use talent from outside your team.
You almost certainly hired your current staff because they had skills that you felt would be valuable to your company.
But, some projects require skills from people who don’t work for you. Here are a few facts you might not know.
- In the USA, Staff Augmentation services raised by 6.3% from 2018 to 2020.
- By 2022, the outsourcing market is expected to be worth $531 billion.
.Today, I will talk about what staff augmentation is and how your business could benefit from it.
What is Staff Augmentation?
Staff augmentation is an outsourcing strategy that allows you to involve specialists who aren’t on your team to get things done.
Let’s say you have a new project or objective and require skills that none of your current staff currently possess. Sure, you could hire a new employee; why would you give a full-time contract to someone who’s only needed for one task?
For staff augmentation, look at your current team, and decide what skills they have and what skills they don’t. Decide if additional talent is needed.
Here are some facts you might not know.
- The world spends about $4.9 billion on staff augmentation.
- 34% of US workers do freelance work.
- A full-time employee on $100,000 yearly will cost the average company 23% of earnings.
How Staff Augmentation saves your company money
Recruitment time is reduced
The hiring process is lengthy. First, you need to put the job ad up. And once everyone has applied, you need to read through the CVs, interview them, and decide who has the right skills for your business.
But with staff augmentation, just find someone who has that one skill you’re after.
Special training is not needed
A new hire can take a while to settle into the company. After hiring, you need to train them so they can do the job how you want them to.
When you hire someone via staff augmentation, you already know what skills they have. And they can even be virtually on-boarded, particularly in the IT industry.
It’s much cheaper than hiring full-time
Why hire someone who you only need for a short time?
Your augmented staff member can work from home and do their job at minimal cost to you.
Since they’re not employees, you don’t need to worry about insurance, building maintenance, safety, or what to do if there’s another pandemic.
You can pick the best candidate
Sometimes, we find someone fantastic! But, the trouble is there on the other side of the country.
With staff augmentation, you don’t need to worry about the distance. No matter where they’re from, if they’re the best at what you need, you can hire them. And, if you’re unsatisfied with their work, firing them is much simpler than it would be with a regular employee.
There are fewer miscellaneous expenses
Another answer to “What is staff augmentation?” is “A way to save money”.Regular employees often require additional expenses such as healthcare, insurance, and 401k. Not to mention the cost of maintaining the building.
But, with staffing augmentation, you can hire someone to work online as a freelance contractor.
The world is your recruitment pool
Sometimes, the best person for the job might not even be in your country.
Why not hire whoever the best person for the job is? They might be on another continent. Who cares? If they can do the job, why shouldn’t they?
It saves you money and allows you access to a global network of talent.
Summary
What is staff augmentation? The way we work is changing. And staff augmentation is the newest way to outsource talent.
If you have a project or objective, there is no need to take on a new full-time employee if none of your current ones have the skills. Just hire someone for the project.
Hire the best person for the job. For a fraction of the cost. In a fraction of the time.
