Team Augmentation: How to Bridge the Hiring Gap with Ease (And Save Costs)
Hiring gaps are widening and core teams need augmentation. A recent Robert Half survey highlights this issue, revealing that 95% of tech managers face significant challenges in sourcing skilled talent. Additionally, 69% have difficulty replacing employees in existing positions, and 29% encounter obstacles when trying to fill new tech roles. In this light, outsourcing and team augmentation comes as a must rather than option in many cases. But when it’s the right time to augment your team and what to consider first?
What Is Team Augmentation?
Team augmentation involves outsourcing part of a software development project by adding external developers to a company's team. This can range from a single developer filling a specific skill gap to a whole remote team working with in-house staff.
This strategy is rising into popularity, with 92% of G2000 companies using IT outsourcing. By next year, spending on IT outsourcing is expected to reach $519 billion.
While IT services make up 72% of global outsourcing value, here are areas that call for team augmentation strategy the most.
Team augmentation is particularly useful for:
Increasing project capacity and efficiency
Adding specialized expertise
Filling skills gaps
Providing additional support to in-house teams
Managing long or multiple projects
Contrary to full project outsourcing, staff augmentation keeps core staff in place while supplementing them with remote developers. It can be a short-term fix or a long-term collaboration, depending on the project's needs.
5 Core Benefits of Team Augmentation
1. Flexibility: Traditional hiring is time-consuming and expensive, and it limits your ability to build a diverse team. Staff augmentation provides the flexibility to add, remove, or swap team members as needed, allowing you to scale your development team up or down based on project demands. This is especially useful for addressing unexpected issues swiftly.
2. Access to a Vast Talent Pool: Staff augmentation grants access to a wide network of skilled developers, far beyond your local area. This means you can find the perfect talent for your project, regardless of the required skill set or experience level. For complex projects, you can assemble a remote team to work alongside your internal developers.
3. Greater Expertise: When you need specialized knowledge for a project, staff augmentation allows you to bring in experts without the commitment of a full-time hire. For example, if you encounter an issue in an EV project, you can quickly integrate an expert to solve the problem efficiently.
4. Improved Quality: Adding skilled developers to your team can enhance the overall quality of your work. Dedicated augmented developers, combined with your in-house staff, ensure that you meet project requirements faster and with fewer complications. Collaboration within the team also leads to more efficient workflows and better outcomes.
5. Increased Efficiency with Reduced Costs: Staff augmentation fills skill gaps, increases team efficiency, and accelerates project timelines. Since you hire developers only as needed, you avoid lengthy training and onboarding processes. Bringing in experienced professionals saves time and money, as they require minimal ramp-up time.
According to Finmasters, companies can reduce labor costs by 70% to 90% through outsourcing non-core business functions, while cost savings are the most common reason for outsourcing.
Market Impact of Team Augmentation and Outsourcing
Outsourcing has emerged as a critical strategy for businesses aiming to optimize costs and enhance operational efficiency. By delegating non-core functions to external providers, organizations can unlock substantial savings while focusing on core competencies.
The global outsourcing market is experiencing significant growth, projected to reach $1.1 trillion by 2025. This surge reflects a growing reliance on external services across diverse industries. A prime example of cost savings is evident in regions like the Philippines, where outsourcing can reduce labor expenses by up to 90% while ensuring fair wages for local workers. The IT sector is leading the outsourcing trend, with companies allocating an average of 13.6% of their IT budgets to external providers.
Beyond cost reduction, outsourcing offers numerous benefits. By delegating tasks such as recruitment and HR, businesses can streamline operations, leading to reduced staff numbers and increased satisfaction. Additionally, outsourcing non-essential functions can accelerate product launches by up to 25%. Access to a global talent pool is another key advantage, enabling companies to tap into specialized skills and expertise.
What To Consider?
Even when you have your research done and decide to seek for a reliable team augmentation partner, there are several core aspects you need to consider.
Experience & Expertise: Look for a provider with a proven track record in your sector.
Flexibility and Scalability: Ensure they can adapt to your evolving needs and scale the team as required.
Cultural Fit: Assess how well they align with your company's culture for seamless integration.
Project Management & Communication: Evaluate their tools, processes, and communication channels for effective coordination.
Talent Pool: Verify their ability to access a diverse pool of skilled professionals to meet your needs.
Do we have what it takes to exceed your Team Augmentation expectations? Let's schedule a call and learn more about your upcoming success story.