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It often happens that a company fails to find the needed human resources for various reasons. In such case, it’s always a good idea to turn to IT staffing companies which will find and recruit the needed team members.
Are IT Staff Augmentation Companies Popular?
If you’re wondering if this service is popular, our answer is 100% yes. There are many companies such as CyberCraft which build remote dedicated development teams for prominent Western companies such as General Electric Digital or Company-X. These and many other examples show that even the largest companies recognize the advantages of this cooperation model. So, undoubtedly, this trend is popular and will continue to grow.
How IT Staff Outsourcing Works
There is nothing difficult about this model. To make it work, take the following steps:
Identify the required skills, qualifications, expertise, number of developers, etc. First, before starting to search for candidates to join your team, you need to know who to look for. You need to define the exact number of people you want to hire and requirements for candidates. These should include skills, qualifications, years of experience and so forth.
Review and selection. Once you know exactly whom you want to hire, the next step is to begin the search process. Find and review suitable candidates. Conduct interviews and have them pass tests to ensure they are qualified enough to join your team.
Integration of new team members. It is a mistake to think that once you’ve signed agreements with the new team members, all the hard work is over.
Continuous support and nurturing. Even after the integration process, you must continue providing support to your new employees on an ongoing basis. Collecting feedback and building strong relationships with them is crucial for effective cooperation.
What Is the Difference Between Managed IT Services and IT Staff Outsourcing?
Managed services imply just that – the outsourcing company manages the staff. In case with staff augmentation, however, the end client is managing the team. In other words, which side a project manager is on draws the line between managed services and staff augmentation.
If the client company already has qualified tech management staff (CTO, PM, etc.) then there is not likely to be a need to use managed services. Otherwise, if the client’s side is not capable of managing remote developers then managed services are the right choice.
Advantages of Using IT Staff Augmentation Services
It is not surprising that IT staff outsourcing is so popular as there are many advantages to it. Let’s see what they are:
Lower development costs
Less recruitment headache
Lower operational costs
Less legal headache
Access to the rare and needed specialists
Increased output and team size
Flexibility
Lower Development Costs
The most obvious advantage of remote staff augmentation and dedicated development teams is significant cost savings. How so? First, your future team members will most likely require lower salaries. If they are located in Eastern Europe or Asia where the cost of living is lower than in the US, they will correspondingly require lower rates. This by itself will save a big chunk of the overall costs.
Furthermore, as we all know, hiring in-house employees in countries such as the US is really expensive (especially software engineers). Add to that employee benefits, social security, taxes, and so forth. Now, let’s compare using IT staff augmentation services from a Ukrainian company such as CyberCraft. The salaries are lower. So are all the other costs such as office space, equipment, taxes and so forth. The bottom line is, offshore staff augmentation is a great way to cut down your development costs.
Less Recruitment Headache
When you turn to IT staff augmentation companies, all the search & recruitment work becomes their responsibility. They search and find qualified candidates according to your requirements. The only part of the recruitment process which remains your responsibility is final interviewing and selection.
Lower Operational Costs
Office space, equipment, taxes, etc. – all of these things constitute a big part of operational expenses, especially in Western countries. With offshore staff outsourcing, the operational costs are much lower. Therefore, by using staff augmentation services, you can decrease your operational costs by a significant degree.
Less Legal Headache
Hiring people always implies legal responsibility and much paperwork. Taxes, payroll, employee benefits – all of these things require it. When you use staff augmentation, the outsourcing company acts as the official employer of your developers. Therefore, the outsourcing firm carries all the legal responsibility and handles all the paperwork.
Direct Access to the Sought-After Special
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