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Sep 09, 21  |  Sharjeel Ashraf

IT Staff Augmentation: Increase Software Team Productivity

Most enterprises are aware that the cost reduction while preserving quality services is the focus of businesses since business established its foundation in our society. One of the most popular measures is the increase in remote workers to outsource different functions and positions that may be performed for lower prices than internal workers. This approach helps to maintain the standard of excellence for which you are recognized by meeting your teams' skills gaps.

IT Outsourcing = IT Staff Augmentation

As the outsourcing business expands, many organizations offering these services raise the degree of expertise of their agents to satisfy even the most technical or industry-specific demands. As a result, the quality of outside employees has no longer fallen. An increase in IT personnel is one of the major industries that can experience these developments.

While adopting IT or software enhancement might look like an extra burden, creating a software Team or working on a project using new technology has become one of the easiest jobs.

Staff Augmentation Market Size

From 2016 to 2020, technology or IT consulting accounted for the lion's share of professional services firms' global sales. Of these, 34.6 percent of revenues in 2020 were in technology or IT consulting, according to the 2020 study.

Staff Augmentation Market Size Statistics by Statista
Staff augmentation is quite common these days. The primary sources of motivation for businesses to outsource their business operations are cost savings, greater operational flexibility, better customer support, access to better technologies, and improved productivity. 

According to data, the staffing and recruiting sector was worth $497 billion in 2019 alone.

Spending on recruiting IT staff has contributed to $69 billion in the worldwide temporary staffing sector, making it the market's largest staffing category.

  • The US staffing industry is expected to grow by 3% in 2022.
  • The US staffing sector is estimated to be worth $156.2 billion in 2022.
  • The IT staff market in the United States is anticipated to expand to US$39 billion by 2024, with a compound annual growth rate (CAGP) of 3% from 2018 to 2024.
  • Staffing Industry Analyst (SIA) anticipates a 40 percent increase in worldwide staffing income next year.
  • Each year, around 0.5 million jobs are outsourced from the United States to third world countries.
  • In 2019-2020, more than half of small firms (52 percent) want to outsource business functions.

Staff Augmentation Market Shortage & Trends

The scarcity of staff augmentation is only likely to increase over the next few years. By 2030, the number of people working in technology is anticipated to be approximately 9 million. That is a one-million-dollar raise. Simultaneously, there is a need to replace personnel who are departing the industry due to retirement or other reasons. This is expected to be approximately 580.000 each year. So, in the future decade, additional 6.8 million tech positions in the US will need to be filled by new job market entrants! In comparison, the United States now generates around 65,000 computer science graduates each year.

CompTIA states that by the end of 2021, there will be around 8 million people working in tech jobs in the United States alone. There were 5.2 million core technical positions, out of which 5.2 million were non-technical occupations (non-core roles include technician, technical engineer, installer and repair guys). They expect 918,000 IT job vacancies to go unfilled in 2019. That equates to about 10% of all roles and 15% of essential tech roles.

Why Do You Need IT Software Augmentation Services

The procedure begins with consultations to detect basic processes and abilities needed to succeed in your project or plan. If these findings are compared with your present personnel, fields beyond the established knowledge silos will become apparent. A customized code base and contribution audit strategy should be taken by all organizations, providing you a profound input into both the quality of your current software assets and engineering processes.

>>> Check Out Why Xamarin is better than Android

IT Staff Augmentation Enhance Productivity

A fractional CTO continues to increase its workforce, working with business owners and high level teams. As a team, the CTO can assist you discover the demands which have to be fulfilled to succeed your product. Your firm only has access to market insights that are known to anybody who has spent significant time in the sector.

The fundamental objective of software managers is to promote success within your development teams. Each time the ROIs and the joy of working together, higher quality services will determine the low-dollar transactions. To do so might imply to move away from offshore software businesses and nearshore environments.

How much does IT staff augmentation cost?

Staff augmentation teams can be on an hourly basis or on a fixed price.

It depends on you as to what deal you make with them. 

IT Staff Augmentation Hourly Fees:

Depending on the team location and service needs, the hourly charges for increased employees vary between $18 to $300. Here are developers in different nations hourly rates.

IT Staff Augmentation Fixed Price:

You can hire the IT staff at a fixed cost. Some IT staff expansion firms offer a transparent pricing structure in which costs are divided into the real developer rates and the company service charge. You may manage your budget on a long-term basis with this strategy.

The service charge of the firm generally includes:

  1. Infrastructure equipment, furnishings, and other offices
  2. Services of payroll accounting;
  3. Values for insurance
  4. Internet access

These are the fundamental remote increases in employee rates that you may consider when opting to extend your present team by increasing personnel services.

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IT Staff Augmentation vs IT Project Outsourcing

The outsourcing of IT projects allows an organization to run whole projects with another firm's resources. This can also be called "outsourcing," in some situations, when specific project work can be outsourced to a sub-team supervised and staffed by the outsourcer.

On the other hand, IT staff augmentation enables a firm to add more remote employees to its teams on the basis of further skills necessary to support its ambitions. The staff augmentation process increases company employment as well as productivity. These are temporary workers or usually associated with another agency that outsources them for any task the firm requires.

The major difference between IT outsourcing and project outsourcing is that project outsourcing is specific to a single project. While IT outsourcing is specific to any project the company wants to work on. 

Hybrid Approach: IT Staff Augmentation & Outsourcing

No strategy to success is one-size-fit. For some firms their demands are best fulfilled by increasing their in-house employees, for others by outsourcing projects, and these needs occasionally overlap.

Take an example of two projects interdependent:

The initial project fits within the core capabilities of a firm, but further experts are necessary to properly execute the project.

The second project is beyond the main competences of the firm.

In this scenario it is possible to adopt a hybrid strategy when staff increase is used to acquire the necessary expertise for the first project and the second is utilized for outsourcing projects.

Ready to Hire IT Staff Augmentation Teams?

The team, depending on the team, might pay a lot for profit, labor and sometimes health. An increase in staff reduces the need for training, on-board, HR, health and retention services for new workers. It also provides you greater scalability, since you can get accurate professionals when you need them.

Hire top resources for IT staff augmentation outsourcing for your firm with Distinguished.io b2b ratings and reviews platform. Find out top talent and firms that are offering their services for IT staff augmentation and see how they can help you. 

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