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How To Scale Your Business Quickly (Augmentation Vs. Recruiting)

Many successful companies experience growing pains. That comes with the territory. There is a special anxiety that comes from important projects as they start to gain momentum. That anxiety is compounded when management recognizes that these projects will need extra staff, not necessarily for completion, but for a faster time to market. Business and innovation move quickly, and those companies that can’t keep up find themselves at the back of the pack.

One of the benefits that many companies have seen in light of Covid is that work no longer needs to be done “in-house.” Quite the opposite: the idea of there being a “house” has become incredibly flexible. With operations moving to remote work structures, the idea of additional staffing has also become more flexible. Success can be achieved through remote operations if the proper structures are put in place to succeed. Consequently, the question that many businesses ask themselves when faced with the issue of scaling, is: is it more beneficial to go with direct hires or will staff augmentation provide the solutions to help them get to the finish line that much faster?

Direct hiring is the more traditional route for growing any team within the company. If the company has a successful development team, direct hiring is a potentially beneficial choice. The team will have the structure in place, and the experience necessary, to recruit and evaluate new hires at a rate that is fast enough to stave off a loss of momentum. However, if a company does not have the development structure in place to meet the needs of the new hiring strategy, or if the company is moving at such a fast pace with one project or multiple projects simultaneously, then it would better serve the company to consider staff augmentation. Staff augmentation should be considered if:

The company’s team is proving too small for the project at hand, or if the project seems to be branching into multiple tracks that would be better served with additional hires,

If the work and development demands of product development are increasing and there isn’t the appropriate staff in the immediate area to bring in as additional work force,

The idea of quick scale up or scale down on any project is attractive from a flexibility point-of-view. Augmented staffing allows for that flexibility.

The first step to healthy, fast, and effective scaling via augmented staffing is to develop a corporate strategy that serves all levels of project development.

Start by creating a modular staffing model

Different elements of the company may grow at different speeds and in different directions simultaneously. One area of your company—or one project—may be growing at a faster speed than the others and, therefore, need an influx of new talent to help maximize the necessary output. Other areas might not need extra help as immediately. By differentiating the needs of the company and strategizing around a modular model, companies will have greater flexibility to respond quickly and effectively when needing to scale up or scale down project teams.

Maximize the value and effectiveness of contract staff

In working with a staffing partner regarding the specifics of augmented staffing, it is important to keep in mind that these temporary contract hires can serve the specific needs of a company during quick growth or fast project completion schedules. Augmented staff can be hired for a wide range of talent specialties and technical fields. Focused hiring on maximized effectiveness reduces the stress on the in-house talent while increasing the potential for project success both quickly and effectively.

Ensure that your contract staffing is connected to the company’s culture and branding

As the company grows, it is important to keep an eye on maintaining the corporate culture and employment brand that brought the company success in the first place. Companies need to work closely with recruiters to ensure that the culture and company brand are at the forefront of communication. Additionally, steps must be taken through the period of engagement to solidify these ideas with the augments staffing personnel.

Work closely with a reputable and effective recruiter

Make sure that the recruiter has a good reputation in the industry and a low rate of attrition—the industry standard is 10-15%. Additionally, make sure that the vendor has many recruiters so that there is the possibility to find more or alternative talent quickly and effectively.

There might be disadvantages in augmented staffing if the proper approach is not considered in advance.

Long-term projects may be difficult to develop, and consequently become sluggish, with contracted hires. The solution is to move forward with a reputable vendor who can service the company’s staffing needs in both an on-going and flexible manner,

Ensuring that the augmented staff has the proper training may prove time consuming which can be exactly the opposite effect that the hire was supposed to have. Again, therefore communication with a vendor at the outset if of the utmost importance.

Augmented staff will lack the company culture. Here is where time and strategy pay off, however, if a company has a structure in place that helps to introduce these new hires to the culture and the brand,

There might be workflow and communication issues. In-house teams are used to each other’s workflow habits, communication techniques, and general corporate rhythms. New hires—particularly when those hires are augmented and remote—may have a harder time adapting to the established patterns. The company needs to do the necessary preparatory work with the vendor to make certain that there is little momentum lost in bringing in the new staff.

With all those considerations, is augmented staffing better and faster than regular recruiting for companies that want to scale quickly? Speed is certainly the primary advantage. While it might be problematic for a company to attempt an augmented staffing strategy on their own, by developing a relationship with a reputable vendor, a company can be almost guaranteed that it will be able to scale up or down with remarkable speed. Here are some of the other benefits of augmented staffing:

Flexibility is key. Companies during fast growth are often unaware of their needs beyond the short-term scope of specific projects. With augmented staffing, companies are afforded the flexibility of increasing or decreasing their staff at a relatively rapid rate depending on the needs during any period.

No long-term contracts or additional benefit costs. The only contract will be with the vendor, with the specifics of terms and duration dictated at the outset. There is no fear of long-term contracts with employees that would have to be honored in the event of down scaling. Also, the company will not have to pay the additional expenses that come with employee benefits and insurance.

Lower costs with no loss of quality. Staff augmentation is an affordable alternative that tends to be far less costly than direct hiring. This savings is especially true when considering taxes and other costs directly associated with direct hires.

Recruiting is left in the hands of people who recruit for a living. If the company doesn’t have a recruiting or development team in place, too much time and effort can be wasted as they try to get up to speed, canvasing and assessing the right talents for projects. With qualified vendors, the talent is already in place, evaluated and ready to go.

The company stays in charge. With augmented staffing, the project is not outsourced to a third party. Everything stays under the corporate roof as specialized talent is brought in to work on the necessary projects. Strategizing with a vendor allows for full communication of the needs and the expectations of the company, leaving little room for variation or disappointment.

As the tech industry continues to grow at an amazing pace, future staffing issues should be considered, and strategies adopted. While direct hiring offers a solution for more long-term issues that might arise, companies need to consider the benefits that augmented staffing can provide speed, flexibility, consistency, and control. Once the decision is made to pursue augmented staffing, there are additional steps that need to be taken, including the search for reputable vendors and the consideration of the legal aspects of the vendor-client relationship. But those considerations have many road maps in place by those who have already traveled the road to success. The most important element is remembering that speed and flexibility allow companies to move quickly. That consideration should always be first and foremost.

Scale your company quickly with our Staff Augmentation service.

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Augmentation vs. Outsourcing

Sometimes, corporate IT departments need technical staffing services to speed up their projects. The firms may opt for outsourcing engagement models. Two such models are staff augmentation and project outsourcing.

This article compares the two techniques and provides more information about using them. Staff Augmentation Staff augmentation hires professionals on a short-term basis. The augmented staff may join the project development whenever you need their skills. You may also employ the augmented staff to complement your in-house IT team. Indicators for Augmenting Your Project Staff augmentation may be the best option if you need extra expertise. The technique lets you be in charge of the implementation process. In this case, you oversee the hiring and vetting of the augmented staff. You also ensure that the augmented staff aligns with your in-house development team. Types of Staff Augmentation 1. Commodity augmentation This type of augmentation does not involve any specific skill set. The technique is common among manual labor and basic factory or warehouse work. 2. Skill-based augmentation Skill-based augmentation does not consider the skill level of workers. The technique is suitable for clerical, data processing, transcription, and copywriting work. 3. Highly-skilled augmentation Highly-skilled augmentation selects staff with advanced skills and significant training and experience. The skill level matters and is critical to the selection process. Highly-skilled augmentation is suitable for software engineering, contract law, and brand design tasks. Augmentation Services: There are many types of augmentation services. But choosing the best service depends on the specific needs of your company. The following are the different types of augmented staffing providers: 1. Traditional providers Traditional providers are better suited for non-critical projects. You can find such providers on TEKsystems, Experis, and Adecco sites. 2. Master vendor providers Master vendors provide significant scale commodity augmented services. The vendors include Manpower, Kelly, Aerotek, and Randstad. 3. Specialized/boutique and consulting firm providers These vendors provide skilled and skill-based augmented services. Examples include PointB, Patina, and Solutions. 4. Gig platforms Gig platforms are online platforms that provide instant access to independent workers. The platforms offer fast and flexible commodity skill-based augmentation. An example of a gig platform is Freelancer.com. 5. On-demand talent platforms On-demand platforms provide the curated and highly-skilled talent. These sites include BTG and Toptal. 6. Direct independent relationships Direct independent relationships refer to the independent contractors whom a company augments. These workers are better suited for skill-based jobs. Examples of direct independent relationships sites include TalentNet and WorkMarket. Pros and cons The benefits of staff augmentation include: Augmentation reduces the cost of hiring and onboarding new staff. You only pay for the actual hours the augmented team spends on your project. Augmentation allows you to find the most suitable professionals for your project. The technique offers seasonal and flexible employment schemes for external teams. The augmented staff may be from any geographical location. The augmented team works with your in-house IT team. Staff augmentation ensures in-house management and eliminates the need for external project managers. Cons Staff augmentation presents extra costs as the project expands while retaining internal management. Interacting and mixing with augmented staff may cause the in-house team to lose focus. In this case, there is no job separation between your team and the augmented team. Companies may incur training costs for the augmented staff members. Staff augmentation may be difficult to scale if the project’s scope changes. Outsourcing Project outsourcing involves paying for specific, prearranged outcomes. You also give up direct control over your project. The outsourced vendor works with an external team to complete the project. Meanwhile, you can focus on in-house development tasks. Indicators for Outsourcing Your Project Various factors may prompt you to outsource

your IT project. These factors include: 1. Lack of in-house developers and tech expertise Outsourcing delegates IT tasks to an external team. Your in-house team can focus on other prioritized jobs, speeding up business processes. 2. Carryovers and failed deadlines Scaling or adding a separate team may enable your project team to meet deadlines. 3. Need to optimize costs Outsourcing involves finding an experienced external manager w. The outsourcer will help you avoid administration, recruitment, and human resource overhead. 4. Difficulty augmenting the right talent and tackling complex projects Outsourcing provides a vast talent pool. You can select the outsourcer who will benefit your project more. Outsourced vendors also have access to experienced teams and potential workforce. Pros and cons of outsourcing an IT project The benefits of outsourcing an IT project are: Outsourced project managers handle the whole process. Outsourcing requires little to no training. But if your company uses legacy or proprietary systems, you may incur training costs. An outsourced team works with fixed deadlines. Your company will likely deliver its projects on time. Outsourced projects are more scalable. Outsourcing reduces management costs since the vendor handles the outsourced workers. Outsourcing is a cost-efficient way of improving your company’s technical skills. Workforce turnover does not also affect the project’s progress. Cons Outsourcing hands over most of the project’s control to the outsourced vendor. This way, you will have less control over the project’s execution. It may also be challenging to integrate the outsourced project with internal systems. In this case, you must ensure that your business aligns with the outsourced team. Outsourced vendors may also be less inclined to take on smaller projects. Staff augmentation vs. outsourcing The comparison of the pros and cons of both staffing techniques include: 1. Responsibilities and costs The augmented service provider handles the recruitment and employment of workers. The vendor is also responsible for the project’s well-being. Those who outsource their projects benefit more from the technique. The model increases employee commitment and task prioritization. 2. Work and organizational culture Outsourced projects have a better work atmosphere and organizational culture. Developers can create unique work environments that focus on knowledge exchange and cooperation. Engineers working in an augmented model may not identify with the third parties. They are likely to work for other organizations when the current project is complete. 3. Project management In the staff augmentation model, the outsourcer handles project management. An experienced in-house software development team also works on the project. This team discovers an efficient way of handling and building a partnership portfolio. Outsourcing a project means that the company has to hire an external team. The vendor establishes a single point of contact that conveniences the buyer. The vendor also takes over the entire management liability of the project. 4. Vendor relationship All successful businesses depend on mutual trust and understanding. Outsourcing a project creates a direct and permanent partnership. Staff augmentation creates a shallower partnership that focuses on providing a skilled workforce. The partnership terminates upon the project’s completion. 5. Cooperation kick-off Staff augmentation requires less kick-off time than outsourcing the entire project. The outsourcer finds the right workforce and technical experience needed for the project. The outsourcer also determines the project’s scope and functionalities. The in-house software team assembles a dedicated team for each project. The team scales the project according to the current user needs. 6. Internal IT policy Outsourcing projects creates a shortage of in-house developers. You may also end up in a loop where you cannot use past augmented staff. You need to find new developers and introduce them to their knowledge

and experience. For this reason, project outsourcing creates an unnecessary, tiresome loop. 7. Insights and knowledge Augmented developers do not know previous products, business experience, or industry insights. You cannot expect these developers to be as active as your in-house development team. Each outsourced project should be unique and personalized. The outsourced vendor creates a team that implements your project fast. The team can dig deeper into your organizational knowledge to know your actual needs. Which one should you select—Augmentation or Outsourcing? The suitable technology staffing method might not be obvious. You have to consider various factors to come up with the best model. These factors include: The anticipated staffing requirements. This factor may stem from projected business growth or contraction. Your company’s technical skills. If your employees do not have the required skill set, you must outsource the project. The company’s IT and personnel budgets. Limited budgets may limit your selection to staff augmentation. Your competitor’s position in the global competition. The project’s deadline and speed are needed to market it. You may also want to consider the individual staffing models and what they have to offer. Staff augmentation provides a flexible solution that integrates in-house and external technical expertise. The model works best for existing projects and lets you take control of each project step. IT project outsourcing lets you give up direct control of your project. This technique works best for new projects. You can also opt for project outsourcing if you lack in-house expertise. Outsourcing will help you cut costs. Your in-house programmers will also have more time to work on essential tasks. Conclusion You can integrate augmentation and outsourcing or opt for individual techniques. Either way, select an experienced vendor who can solve your current staffing challenges. After all, the goal is to make your company more competitive and as efficient as possible. Learn More about Sigma Solve’s Staff Augmentation Service.