US companies need to have access to the latest technologies and the most skilled IT professionals. A recent study by Forrester found that companies that use IT staff augmentation can bring new products to market 20% faster than companies that do not. According to a report by Grand View Research, the global IT staff augmentation market size is expected to reach USD 147.2 billion by 2028.
The top industries using IT staff augmentation are healthcare, financial services, and technology. IT staff augmentation is a solution that can help US companies to overcome their challenges. US companies can gain access to the skills and expertise needed to thrive by hiring external IT professionals to supplement their in-house teams.
Here are some specific examples of how US companies are using IT staff augmentation to their advantage:
- A large healthcare company uses IT staff augmentation to hire experienced developers to help them develop new mobile health apps.
- A leading financial services company is using IT staff augmentation to hire cybersecurity experts to help them protect their systems from cyberattacks.
- A fast-growing technology company is using IT staff augmentation to hire data scientists to help them develop new AI-powered products and services.
Defining IT Staff Augmentation
IT staff augmentation is a flexible outsourcing model that allows companies to augment their in-house teams with external talent. IT staff augmentation companies often provide this external talent. This can seamlessly integrate into the client’s project, offering specific skills and expertise.
Driving Efficiency and Innovation: IT Staff Augmentation Trends in the US
A recent survey by Clutch found that 83% of small businesses will maintain or increase their spending on outsourced business services in 2023. As of 2021, IT staff augmentation had become a significant part of IT strategies for US companies, with approximately 37% of IT leaders in the country relying on augmentation services for various projects, according to a survey by CIO Dive.
According to a Market Growth Reports study, The global IT staff augmentation market size is expected to reach USD 147.2 billion by 2028, growing at a CAGR of 7.6% from 2021. In terms of industries, the financial sector led in IT staff augmentation adoption, with around 45% of financial companies in the US using augmentation services to bolster their IT capabilities, as per data from Deloitte.
Why US Companies Embrace IT Staff Augmentation: Key Benefits
Most vital benefits of IT Staff Augmentation in US companies are the following;
1. Time Savings in Hiring and Onboarding
Traditional hiring processes can be time-consuming, often taking up to 42 days on average. On the other hand, IT staff augmentation streamlines this process, reducing the time required for onboarding and project initiation by 50%. This accelerated timeline enables US companies to react swiftly to market demands and opportunities.
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Streamlined Recruitment Processes
Traditional hiring involves multiple stages, from posting job listings to conducting interviews. With IT staff augmentation, the recruitment process is streamlined. You can skip the time-consuming steps and quickly onboard skilled professionals.
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Rapid Onboarding
When you engage IT staff augmentation services, you gain access to professionals who are well-versed in their roles. This means they can hit the ground running, requiring minimal onboarding time. As a result, your projects can progress swiftly.
2. Flexibility in Scaling Teams
Sometimes you need a bigger IT team, and sometimes you need a smaller one. The appeal of IT staff augmentation lies in its adaptability. You can scale your team up or down as easily as turning a dial. According to a report by McKinsey, companies that embrace workforce flexibility experience up to 2.4 times higher revenue growth.
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Tailored Team Sizes
IT staff augmentation offers a tailored approach to team building. US companies can adjust their team sizes based on the specific requirements of each project. Whether you need a small, dedicated team for a short-term task or a larger, cross-functional team for a long-term initiative, the flexibility is yours to control.
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Scalability on Demand
The scalability of IT staff augmentation extends to both growth and downsizing. When a project’s demands increase, you can quickly augment the team with additional professionals. Conversely, when a project nears completion or experiences a reduced workload, you can scale down your team, optimising resource allocation.
3. Increasing Expertise
You’ve got a complex software project and need someone who knows the ropes inside out. IT staff augmentation brings in specialists who are pros in the exact skills you require. A survey by Stack Overflow revealed that 64% of developers are self-taught, so having access to experienced professionals can make a world of difference.
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Specialised Skillsets
One of the standout advantages of IT staff augmentation is the ability to cherry-pick professionals with highly specialised skill sets. These experts possess in-depth knowledge and experience in specific domains, ensuring that your projects receive the exact expertise they require.
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Custom-Tailored Teams
You have the autonomy to assemble custom-tailored teams of professionals with complementary skills. This ensures that your projects are equipped with the right blend of talent to tackle diverse challenges, resulting in top-tier work and innovative solutions.
4. Enhanced Availability Across Time Zones
With an augmented IT team, the clock never stops ticking. Your team can work around the clock because they’re spread across different time zones. This not only speeds up project delivery but also provides support when it’s needed, no matter the hour. A study by Harvard Business Review found that global teams can complete tasks 24% faster.
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Round-the-Clock Productivity
Globalisation has created a talent pool that operates in various time zones. IT staff augmentation allows US companies to leverage this diversity to maintain round-the-clock productivity. With team members working across different time zones, projects can advance continuously, reducing bottlenecks and delays.
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Efficient Cross-Border Collaboration
Collaborating with professionals from different geographical regions promotes cross-border collaboration. It fosters a culture of diverse perspectives and can lead to creative problem-solving. This global approach enhances project efficiency and fosters a sense of inclusivity.
5. Cost Savings from US Salaries
Hiring full-time IT talent in the US can be expensive. But with IT staff augmentation, you can tap into a global talent pool where salaries may be more budget-friendly. A recent report states that the average annual salary for a software engineer in the US is around $100,000, while in countries like India, it’s significantly lower, around $15,000 – $30,000.
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Competitive Rates
One of the most significant cost advantages of IT staff augmentation is access to global talent at competitive rates. By sourcing professionals from regions with lower living costs, US companies can reduce labour expenses without compromising on the quality of work.
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Overheads Minimisation
Beyond base salaries, IT staff augmentation eliminates the need for additional overhead costs associated with full-time employees, such as health benefits, office space, and equipment. This cost-efficient model helps companies allocate their budgets more effectively.
6. Access to Diverse Skill Sets
IT staff augmentation opens the door to a vast and diverse pool of talent worldwide. US companies can tap into a wide range of skill sets and expertise that may not be readily available locally. This diversity can be particularly beneficial when projects require proficient expertise or a mix of competencies. Whether you need web developers, data scientists, cybersecurity experts, or AI specialists, IT staff augmentation allows you to find the right talent for the job.
7. Rapid Response to Market Demands
Responding swiftly to changing market demands is crucial in the fast-paced tech industry. IT staff augmentation enables US companies to be agile and adaptive. When an unexpected project arises, or market conditions shift, you can quickly augment your team with the necessary talent without the delays associated with traditional hiring processes. This agility helps you stay ahead of the competition and seize new opportunities promptly.
8. Knowledge Transfer and Skill Development
Working with IT staff augmentation teams often means collaborating with professionals who bring a wealth of knowledge and experience to the table. This not only benefits your immediate projects but also provides an opportunity for knowledge transfer. Your in-house team can learn from external experts, enhancing their skills and capabilities. Over time, this can lead to the organic growth of your internal talent pool.
9. Mitigation of Resource Constraints
US companies may face resource constraints, especially during peak project periods. IT staff augmentation offers a solution to bridge these gaps. Whether you need additional developers for a demanding project phase or require expert skill sets temporarily, you can alleviate resource constraints by augmenting your team with external experts. This prevents overburdening your existing staff and ensures projects are completed on time and within budget.
10. Risk Mitigation
Inherent risks are associated with hiring full-time employees, such as the potential for turnover and the challenges of letting go of underperforming team members. IT staff augmentation minimises these risks. If a contracted professional is not meeting expectations, you can adjust the team composition or engage with a different expert without the complexities of traditional HR processes. This risk mitigation ensures that your projects remain on track and meet quality standards.
Future of IT Staff Augmentation in the US
The landscape of IT staff augmentation in the United States has been rapidly evolving, with notable changes and trends emerging over the past few years. One of the sectors that experienced substantial growth in this field is the healthcare industry.
In 2019, before the coronavirus infected the world, the global IT Outsourcing market was worth $ 92.5 billion, according to a Statista report. And after the pandemic, the IT talent market has grown to $ 132.9 billion. Revenue in the IT Outsourcing market is projected to reach US $460.10 billion in 2023.
Between 2019 and 2020, there was a remarkable 20% increase in IT staff augmentation services adoption within healthcare organisations. This surge can be attributed to the pressing need for digital transformation and the widespread adoption of telehealth services.
According to a survey by ISG, 63% of US companies that leveraged IT staff augmentation reported a decrease in their overall IT costs, mainly due to reduced hiring and training expenses.
In addition to cost savings, 72% of respondents in the same ISG survey noted that IT staff augmentation helped them access professional skills they couldn’t find internally. During the pandemic, IT staff augmentation played a crucial role in helping companies adapt to remote work. A PwC study revealed that 80% of US businesses had increased their use of augmentation services during the COVID-19 crisis.
The future of IT staff augmentation in the US appears promising and dynamic. It offers cost-effective solutions and access to specialised skills and expertise that are essential in the ever-evolving world of technology. As businesses adapt to changing circumstances, IT staff augmentation will likely remain vital for driving innovation and ensuring operational efficiency.
Market Growth Trends
IT staff augmentation is a growing trend among US companies, and it is expected to continue to grow in the years to come. This is due to a number of factors, including the increasing demand for IT skills, the rising cost of hiring full-time employees, and the flexibility and scalability that IT staff augmentation offers.
According to a recent report by Gartner, the global IT staff augmentation market is expected to reach $12.7 billion by 2026. This represents a compound annual growth rate (CAGR) of 12.3%. The US is expected to remain the largest market for IT staff augmentation, accounting for over 30% of the global market share in 2026.
Key Drivers of Market Expansion
Several key drivers contribute to this substantial growth:
- Digital Transformation: The pervasive trend of digital transformation continues to drive demand for IT staff augmentation. Businesses worldwide are undergoing digital overhauls, requiring IT skills and expertise to implement and manage these changes effectively.
- Project-Based Hiring: The flexibility offered by IT staff augmentation is particularly attractive to businesses. By 2026, it is estimated that over 40% of IT roles in organisations will be project-based rather than traditional full-time positions as companies seek the agility to scale their workforce as needed.
- Emerging Technologies: With emerging technologies like artificial intelligence, machine learning, and blockchain gaining prominence, the need for experts in these fields is growing exponentially. IT staff augmentation provides access to the talent pool.
Market Dynamics by Region
While the United States is set to dominate the global IT staff augmentation market, it’s important to explore regional dynamics further:
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North America
Beyond the United States, Canada also plays a notable role in the region’s market growth. The adoption of IT staff augmentation services is growing steadily in both countries, driven by a need for specialised talent to support various industries.
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Europe
In Europe, the market is showing promising growth, with countries like the United Kingdom, Germany, and France leading the way. The European market is expected to benefit from a strong technological infrastructure and a diverse business landscape.
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Asia-Pacific
This region is emerging as a significant player in the IT staff augmentation market. Countries such as India and China are witnessing substantial growth, driven by their robust IT ecosystems and cost-effective solutions. India, in particular, is renowned for its IT talent pool and cost-efficient services.
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Latin America and Middle East
These regions are also experiencing growth in IT staff augmentation services, driven by expanding technology adoption and the need for skilled IT professionals to support various industries.
Diverse Industry Applications
The growth of IT staff augmentation isn’t confined to a single sector. It’s being embraced by a wide range of industries, including finance, healthcare, e-commerce, and manufacturing. The flexibility and scalability offered by IT staff augmentation make it a versatile solution for organisations across diverse sectors.
Challenges and Opportunities
While the IT staff augmentation market is flourishing, it’s not without challenges. IT staff augmentation is a rapidly growing industry with a wide variety of obstacles and prospects for businesses. Businesses must compete for top IT talent and keep them as they increasingly rely on external talent. The US IT staff augmentation market presents several problems and opportunities.
Challenges:
- Intense Talent Competition: Fierce competition for skilled IT professionals leads to salary pressure and smaller companies struggling to compete.
- Retention Issues: Keeping top talent is tough due to larger firms’ attractive packages, so focusing on employee retention strategies is imperative.
- Skills Gap: The ever-changing tech landscape demands ongoing upskilling efforts to bridge skill gaps and stay competitive.
- Data Security & Compliance: Navigating complex data regulations poses challenges, emphasising the need for experts in these areas.
Solutions:
- Specialised Services: Offering specialised expertise in cybersecurity and compliance capitalises on growing demand and commands premium rates.
- Remote Work Opportunities: Embracing remote work broadens the talent pool and fosters flexibility, benefiting both firms and professionals.
- Innovative Hiring: Unique hiring strategies, flexible work arrangements, and continuous development efforts help attract and retain top IT talent.
- Strategic Partnerships: Collaborating with experts enhances service offerings, creating more value for clients.
- Diversification: Expanding services to emerging tech areas diversifies revenue streams, ensuring long-term growth and relevance.
IT Staff Augmentation with Zartis
Zartis offers IT staff augmentation services that can help businesses achieve their software development goals efficiently. Here’s how Zartis does it:
- Your On-Demand Software Development Dream Team: Zartis provides access to senior engineers and specialists who are experienced and ready to contribute to your projects immediately. Their team is composed of experts who can offer valuable insights.
- Cost-Effective Software Development: Zartis allows you to set up a software development team quickly and cost-effectively. This means you can get started on your projects with minimal time and resources.
- Scalable and Flexible Teams: Zartis offers flexibility in team size. You can start with a team tailored to your current needs and easily scale up or down as your requirements change. This minimises risk and maximises flexibility.
- Less Administrative Work: Zartis takes care of administrative tasks, allowing you to focus on software development. This means you can concentrate on building great software without the burden of managing various administrative aspects.
- Client Success Stories: Zartis has a track record of success with clients, helping them find hidden talent quickly and doubling their team size. Their high-quality engineers have consistently delivered excellent results for their clients.
Process of Working with Zartis Involves
- Building a Custom Software Team: Zartis tailors teams to your specific requirements, ensuring that the engineers have expertise in your tech stack and relevant industry experience.
- Achieving Full Integration: Zartis emphasises seamless integration of their developers into your team. They establish transparent communication processes to ensure success.
- Providing Ongoing Support: Zartis offers ongoing support with dedicated points of contact on both the business and technical sides, enabling you to focus on software development while they handle the support.
If you’re interested in IT staff augmentation or need a custom software development team, Zartis appears to be a cost-effective and flexible option with a strong track record of client success.
Final Verdict
IT staff augmentation offers a strategic advantage to US companies seeking to thrive in today’s competitive landscape. By partnering with skilled professionals and accessing a global talent pool, businesses can swiftly adapt to evolving technology needs, reduce overhead costs, and enhance their project scalability.
It encompasses global expansion, specialisation, remote work adaptation, and the integration of AI and automation to provide companies with the agility and expertise required to navigate the complexities of modern technology landscapes successfully.
As companies continue to navigate the dynamic world of technology, embracing IT staff augmentation becomes an advantage and a necessity for staying ahead of the curve. Gaining the edge in the tech industry is within reach through smart and strategic IT staff augmentation choices.
Unlock Your Software Development Potential with Zartis
Are you ready to take your software development projects to the next level? Look no further than Zartis, your trusted partner in IT staff augmentation. Our senior engineers and specialists are poised to join your team, providing expert insights and helping you achieve your goals quickly and efficiently.
Don’t miss out on the opportunity to set up a nearshore or offshore software development team with us, tailored to your needs and ready to hit the ground running. Say goodbye to administrative hassles! We’ll handle everything so you can focus on building great software at pace. Take action today, and start a conversation with us! Let’s make your software development dreams a reality with Zartis by your side!
