Companies can reduce their operating costs and increase productivity by using staff augmentation. Before you use this service, it is important to know the pros and cons of staff augmentation.
This article will discuss the definition of staff augmentation and how it differs from managed services. We also examine its pros and cons. Let’s start by explaining What is Staff Augmentation.
What is Staff Augmentation?
Staff augmentation allows you to hire the employees your company needs at a lower price by outsourcing. Your company will manage your augmented staff as if they were your employees. However, there are significantly lower costs and liabilities associated to hiring and maintaining them. Staff augmentation is usually used to temporarily fill in for a particular resource.
Staff Augmentation vs. Managed Services
Two factors can explain the difference between staff augmentation and managed service: Control and accountability.
Staff augmentation gives you complete control over what tasks your augmented employee will perform. They will behave much like your staff and may require additional training to be able to fit into your company’s operations or projects.
Managed services, on the other hand, means that one of your departments is completely outsourced to a third-party organization. You will not have any control over the hiring and firing of staff. This approach allows you to focus on core competencies of your company while the managed service provider manages the day-to-day operations and management.
Your company has full control over staff augmentation and is therefore fully responsible for the performance of the augmented staff.
Managed services are more accountable than managed services. MSP clients typically have a service level agreement (SLA), which guarantees that certain goals and objectives will be met by the managed services provider.
Understanding Staff Augmentation: The Pros and Cons
Pros of Staff Augmentation
1. Lower Costs
Staff augmentation companies often use resources from all over the globe to supply personnel at significantly lower costs.
Here are some examples of positions we were able offer our clients to give an idea of how much staff augmentation can save them.
- Help Desk: 46.14% Cost savings
- Systems Engineer: 48.77% Savings
- Software Developers: 52% Savings
- Quality Assurance Specialist: 55% Savings
You will also be able to cut costs on office equipment and space, as the staff will work remotely.
2. Total Control over Staff
See the section on “Staff Augmentation vs. Managed Services will allow you to have full control over the staff’s hours, tasks, and other details. You have the ability to control the outcome of any task or project.
3. You can Increase or Decrease the Staff on-Demand
You can easily increase or decrease staff based on the needs of your company. If you receive a project that requires specialized skills, staff augmentation allows you to temporarily increase your resources and then reduce them after the project is complete. Because you don’t hire full-time employees, this method allows you to scale your business more efficiently and with less risk.
4. Eliminate Overhead Recruitment and HR Management
Staff augmentation is where the provider takes care of recruiting and managing the employees you need. This will allow you to cut down on the time and cost associated with recruiting employees and redirect resources and staff augmentation to more important positions or HR tasks your company requires.
5. You Have Access to a Larger Pool of Specialists
Many staff augmentation companies have offices around the globe, so you have access to more talent than just your local area. This allows you to hire niche or specific skills faster and meet your needs on time.
Cities and countries may also have special skills that they promote and cultivate, giving you the opportunity to find top talent in a particular area.
Cons of staff enhancement
1. Remote staff reduce accessibility
Providers can leverage resources from countries with lower living costs to lower the cost of staff augmentation. This means that staff will be provided remotely and may not be as easily accessible as someone who works in the same office.
2. Potential for miscommunication
Miscommunication is another potential problem with staff augmentation. While English is widely spoken in many countries, there are specific dialects within each country that can cause miscommunications.
It is important to clearly communicate all instructions to avoid confusion. This will reduce communication errors and possibly save time.
3. Different cultural backgrounds
Finally, cultural differences can lead to potential problems. Culture greatly influences how an individual is managed. Language, history, religion, and culture are just a few of the factors that can affect an individual’s work habits.
We recommend reading articles and books on how to manage staff from certain countries.
Staff augmentation can be a great way for companies to cut costs and still have the resources necessary to keep their business productive. Staff augmentation services give you the flexibility to adjust your resources according to your business needs. Consider the pros and cons of staff augmentation. However, they can be mitigated to improve your business’ efficiency.