IT Staff Augmentation: When Profitable And When Is Not The Best Option

May 29, 2023

IT staff augmentation is an approach for the profitable hiring of specialists. With IT staff augmentation, you don't have to develop a catchy ad for a vacancy, conduct dozens of interviews, and then think hard about the best choice. IT staff augmentation is much easier: you apply to the staff provider, get CVs, assess the suitable developers, sign the contract, and in the defined timeframe, the employee starts to work.

Quick pros of IT staff augmentation

Pros of IT staff augmentation:

  • The company can quickly get a qualified specialist with specialized experience and seniority.
  • Costs on salaries and insurance premiums are reduced.
  • Costs for a special assessment of working conditions are reduced: since the work unit is not on the staff, there is no need to assess its workplace.
  • The company does not have to deal with issues related to benefits, social packages, and other guarantees for the staff.
  • The workload in the HR department is reduced.
  • There is no need to include additional work units in the staffing table.
  • The company retains the right to remain a small business and to work according to the simplified tax system.

IT staff augmentation allows businesses to quickly scale up or down their workforce based on project needs and demands. This agility allows organizations to adapt to changing requirements, handle peak workloads, and respond to market dynamics effectively.

Differences between IT staff augmentation and outsourcing

In addition to staff augmentation, an outsourcing model exists. IT staff augmentation is the transfer of workers to the customer organization to perform a certain list of tasks within the time frame specified in the contract.

Outsourcing is simpler: the contractor must perform certain production functions and take over non-core business processes that the client company was previously engaged in independently. Outsourcing is widespread in IT, accounting, marketing, legal and transport services.

Outsourcers never join the client organization's staff; they are paid strictly for the work performed and often have flexible work schedules. This distinguishes them from workers hired under the staff augmentation model.

So, the differences between outsourcing and staff augmentation are:

  • The different ways of calculating wages: the staff augmentation model has a fixed salary instead of pay-as-you-go with outsourcers.
  • The method of hiring: staff augmentation model is always the hiring of personnel in the staff of the client firm, while outsourcing is an ordinary contract.
  • The principle of labor organization: staff augmentation can always be prolonged and adjusted; at the same time, outsourcing has strict timeframes and works according to specific estimates.

MaybeWorks is an IT staff augmentation provider with a team of full-stack web developers with an eye on a React/Node.js stack. We have 50+ developers onboard, each with a rich technical background.

Cases in which IT staff augmentation is used

IT staff augmentation comes in handy when an employer needs to find employees but does not include them in the staff because this is impossible or undesirable. IT staff augmentation is used when:

  • The employer wants to save on wages and related taxes.
  • The employer wants to save time and finances on personnel records, simplify paperwork and accounting, and reduce the risk of tax and labor-related mistakes.
  • It is convenient for the employer to use affordable foreign labor and hire migrants, but he is not ready to spend money on a full-time HR manager and accountant.
  • It is necessary to increase the number of employees without losing the company's overall effectiveness.
  • The employer does not want to hire temporary workers and those who have not yet passed the probationary period.

IT staff augmentation benefits many companies like Sprintful and Vocus: it allows them to reduce both direct and indirect costs, avoid inspections, and reduce risks associated with hiring migrant workers. The IT staff provider is in charge of control, payments, and preparation of all documents.

The greater the number of developers who are taken off staff, the more money the company saves. Some commercial firms hire people through IT staff providers because it is especially profitable for them. The cost of staff augmentation is much lower than the total cost of recruitment, hiring, and support.

IT staff augmentation benefits companies that use the labor of foreign nationals. The IT staff provider is responsible for reporting and compliance with labor legislation and assumes all associated risks. The head of a company that orders IT staff augmentation services does not have to worry about the legality of hiring workers and the accuracy of payroll calculations.

Tips on how best to work with IT staff augmentation provider

We have gathered 5 tips to help you have a positive experience with IT staff augmentation services.

Clearly define project goals, deliverables, and expectations

One of the key elements for a successful IT staff augmentation engagement is to have clear project goals, well-defined deliverables, and established expectations. It is crucial to articulate the objectives of the project, the desired outcomes, and the specific deliverables expected from the augmented team. This clarity helps ensure that everyone involved in the project, both the in-house team and the augmented team, are on the same page and have a shared understanding of what needs to be achieved.

Additionally, defining the scope of work, establishing realistic timelines, and identifying relevant performance metrics provide a framework for measuring progress and success throughout the project. Clear communication of project goals, deliverables, and expectations is essential for setting the stage for a productive and effective IT staff augmentation engagement.

Conduct thorough vendor selection and due diligence

Selecting the right IT staff provider, like MaybeWorks, is critical for the project's success. It is important to thoroughly evaluate potential vendors to ensure they have the expertise, experience, and capabilities to meet the project's specific requirements. This evaluation process may involve reviewing the vendor's track record, assessing their technical skills, considering their industry experience, and seeking client testimonials or references.

Interviews with potential vendors can provide valuable insights into their approach, communication style, and ability to work effectively as an extension of your team. Additionally, carefully reviewing contracts and agreements is essential to understanding pricing structures, legal obligations, and termination clauses. By conducting diligent vendor selection and due diligence, businesses can mitigate risks and increase the chances of a successful IT staff augmentation engagement.

Establish strong communication channels and collaboration tools

Effective communication is paramount in IT staff augmentation. Establishing strong communication channels and leveraging appropriate collaboration tools is crucial to facilitate seamless interactions between the augmented developers and the in-house staff. Clear communication protocols, such as regular meetings, reporting mechanisms, and escalation procedures, should ensure everyone stays informed and aligned.

Collaborative tools and project management software can aid in task coordination, document sharing, and real-time collaboration, enabling efficient teamwork across geographically dispersed teams. By fostering a culture of open and transparent communication, businesses can enhance collaboration, address challenges promptly, and maintain a smooth flow of information throughout the IT staff augmentation engagement.

Ensure smooth integration of augmented teams with in-house staff

Integrating augmented teams with in-house staff is essential for creating a cohesive and productive work environment. Providing a comprehensive onboarding process for the augmented team members is crucial. This onboarding should include introducing them to the company culture, familiarizing them with the organization's processes and policies, and ensuring they can access systems and resources.

Assigning a point of contact or a project manager to oversee the integration can help facilitate communication and coordination between the augmented team and the in-house staff. Encouraging cross-team interactions and knowledge sharing through team-building activities or collaborative projects can foster a sense of unity and alignment.

Monitor and evaluate performance and provide regular feedback

Continuous monitoring, evaluation, and feedback are crucial to a successful IT staff augmentation engagement. Establishing clear performance metrics and key performance indicators (KPIs) helps track progress and measure the success of the augmented team's contributions.

Regularly reviewing and assessing the performance of the augmented team members against these metrics provides valuable insights into their effectiveness and allows for timely course correction, if necessary.

MaybeWorks - your reliable IT staff augmentation provider

MaybeWorks is a reliable IT staff augmentation provider that has been partnering with clients worldwide since 2012. Our 50+ experienced developers work with top-notch technologies, that’s why our choice has fallen on the JavaScript/TypeScript stack, namely:

MaybeWorks developers have rich expertise in diverse domains. For example, we were hired for various FinTech projects, including custom banking, insurance, trading, and blockchain apps. This diverse experience allows us to assist projects of any complexity, including ERPs, CRMs, HRMs, B2B portals, SaaS, IaaS, and more.

Feel free to contact MaybeWorks to augment your IT team in the shortest possible time!



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