The latest statistics make it clear: IT Staff Augmentation is becoming increasingly popular, regardless of the COVID-19 pandemic.
Computer Economics recently reported that businesses allocated an average of 13.6% of their IT budget to external staffing solutions in 2020, marking the highest level in the past five years.
Courtesy of Computer Economics
But there’s more to the story. According to Deloitte’s 2021 Global Shared Services and Outsourcing Survey Report, 54% of nearly 600 respondents stated that their organizations engage with IT service providers in some capacity. Additionally, 25% confirmed plans to increase investments in these services over the next 2–5 years as a direct response to the pandemic.
Courtesy of Deloitte
All these data points suggest a strong upward trend: the global IT Staff Augmentation market is projected to reach a staggering $425.19 billion by 2026.
So, what do these numbers mean for your business?
Simply put, if you’re not incorporating IT Staff Augmentation into your business strategy, you risk falling behind the innovation curve and losing your competitive edge.
However, IT Staff Augmentation, if not executed properly, can be detrimental. It’s crucial to adhere to certain industry best practices to ensure the ongoing success of your staff augmentation strategy.
Let’s explore these practices.
What Is IT Staff Augmentation?
IT Staff Augmentation is a business strategy where a company hires external IT professionals to support its in-house team in various functions like strategy and innovation, application development, programming, infrastructure management, and technical support.
Depending on where the augmented staff is based, the model can be classified as onshoring, nearshoring, or offshoring. For more details on these models and examples of IT Staff Augmentation, check out our comprehensive guide.
Why do companies choose it staff augmentation for software development?
Companies opt for IT Staff Augmentation for several reasons, but the following are particularly notable:
- Cost Savings: Salaries for developers vary significantly across different markets. Often, partnering with an external provider, even one from a nearby country, can be more cost-effective than maintaining an in-house team.
- Access to a Larger Talent Pool: In smaller local job markets, finding highly qualified professionals can be challenging. IT Staff Augmentation allows companies to tap into a global talent pool and select from the best available candidates.
- Time Efficiency: By augmenting staff for non-core functions, companies can save valuable time and focus more on core business activities.
- Reduced Administrative Burden: Collaborating with a provider from another country can often result in less bureaucratic red tape and fewer compliance issues.
For more insights on the advantages of staff augmentation, read our article on the 5 Benefits of an Extended Development Team.
What to Look for in a Staff Augmentation Partner
When selecting a staff augmentation partner, consider the following key attributes:
- Competence: Ensure the vendor has expertise in the areas and technologies you need support with. A good way to verify this is by reviewing the company’s case studies.
- Trustworthiness: While past performance isn’t always indicative of future results, you can gauge a company’s reliability by reading client and employee reviews on platforms like Glassdoor. Also, examine the company’s security measures, such as relevant training and ISO certifications.
- Flexibility: As your business needs evolve, your staff augmentation partner must be capable of quickly adapting to new requirements.
- Scalability: If you anticipate growth in your team size, workload, or service offerings, ensure that your external partners can scale with you.
- Collaboration: Unless you are fully outsourcing a service, you will need a partner capable of working seamlessly with your in-house team. The geographical location of the augmented staff can impact collaboration due to time zone differences and logistical challenges.
These are just the basics — there’s much more to IT Staff Augmentation. For a deeper dive into the topic, check out our guides to choosing a good software development company and the top questions to ask software outsourcing providers.
IT Staff Augmentation Best Practices
Finding a reliable augmentation partner who can deliver high-quality results is only half the battle. Here are some additional considerations when establishing the terms of your collaboration:
- Insist on Collaborative Work Arrangements That Uphold Accountability
The best providers have a company culture that promotes collaboration, regular feedback, and knowledge sharing. Open and transparent communication is crucial, so it’s best to establish dedicated points of contact for both the technical and business aspects of your partnership. - Seek Comprehensive Service Packages
A good augmentation partner should provide a full-service package — from recruitment, interviewing, and onboarding to equipment setup, managing the augmented team, and more. - Prioritize Developer Satisfaction
Look for vendors with a strong developer culture where the well-being of their engineers is prioritized. High retention rates usually indicate a positive working environment, effective business processes, stable teams, and satisfied clients. - Retain the Right to Approve or Reject Team Members
You should always have the final say on which engineers join your team. After all, you’ll be collaborating with them long-term. Typically, your provider will seek your input at the final stage of recruitment to ensure you are satisfied with the shortlisted candidates. This process allows you to save time on hiring while still having control over who will work on your projects. - Protect Intellectual Property and Software Security
Ensure that you retain all intellectual property rights as per the staff augmentation contract and evaluate the vendor’s security practices. Certifications like ISO are good indicators of a secure vendor.
Download our Outsourcing Handbook: In this ultimate How-To guide to outsourcing software development, you will find everything you need to make the best decisions for your development needs.
Example of IT Staff Augmentation in Practice
For a real-world example of successful IT Staff Augmentation, consider our case study on Kaluza.
Kaluza, a smart platform ecosystem in the energy sector, needed additional developers to keep up with the growing demand for its cloud solutions.
We screened multiple candidates and handpicked four engineers with the necessary skills. These engineers quickly began working remotely from Madrid, supporting one of Kaluza’s in-house teams and significantly enhancing its capacity in a short period.
While our developers played a vital role in Kaluza’s success, Kaluza retained ownership of the results and all intellectual property rights. We also worked under a time-and-materials contract, which allowed Kaluza to adjust its team size and investment as needed.
IT Staff Augmentation Services with Zartis
Are you ready to take the next step? Learn more about our dedicated development team services and how IT Staff Augmentation with Zartis can help you reduce costs and achieve your business goals.
Then, get in touch and tell us about your needs. Our experts in staff augmentation are here to answer any questions you might have.
