How to Reduce Cost using IT Staff Augmentation & Grow Business?

For growing businesses, the shortage of tech talent is one of the most common challenges. But is there any solution to skip the struggle of recruiting more workforce?

Well, we have a solution, and that is IT staff augmentation.

Since hiring is time and cost-consuming and finding the right set of skills in the IT industry is not easy, staff augmentation is a good alternative for companies to access a wider talent pool. This outsourcing strategy can be a competitive advantage if done right.

The IT industry demands a flexible approach to recruitment, where finding the right talent timely is the key. Therefore, we have listed how businesses can enable team augmentation, manage total costs, and scale the extended team.

Related Read: Top 5 Benefits Of IT Staff Augmentation For Modern Businesses

1. Recruitment happens within a limited time frame

The recruitment process involves many tasks in unison. Planning out hiring a single resource can be a time-consuming task. You have to chart down the employees’ job descriptions and expectations, run multiple rounds of interviews and coordinate with the team. Post-hiring, apart from salary, you have to consider other facilities and resources such as insurance, taxes, additional benefits, etc. 

After recruiting the team member, you must look after the onboarding process. This adds up to investing a lot of time and money on a single employee to be hired.

Nevertheless, the IT staff augmentation saves a lot of time for you. It leverages the existing staff with the required skills set quicker without any hassle of lengthy processes. 

2. No need for special training or acquiring skills

As an IT staff augmentation company, we understand the need for excellent skills and well-trained developers. Normally companies have to spend time training candidates. But that’s not the case with IT staff augmentation services. 

The augmented staff is recruited and trained in advance. The augmented staff can be tested on requisites and then quickly onboarded right on the project. There is a negligible cost of training.

3. Less money is spent on the continuity of operations

There can be various situations for which the company must be prepared. For instance, the Covid-19 pandemic situation affected multiple companies. Therefore, businesses must be prepared with a plan to operate without hindrance, even after the workflow breaks down.

With augmented staff, you don’t need to spend money on insurance, perks and other investments. In addition, as the augmented staff is working under a process, external hindrance may not affect them. 

4. Hiring the right candidate

Every project or task demands a particular skill set and experience to achieve the desired results. Therefore, hiring the wrong candidate can cause losses in the investments and a shortage of talents in the ongoing processes. 

At the same time, an IT staff augmentation company allows you to choose the right candidate as you expand the existing talent pool. It facilitates opportunities to collaborate with the desired candidate. When the project has a skilled and experienced workforce, it promotes efficiency and productivity.

5. Save on miscellaneous expenses

There are various miscellaneous expenses associated with the company.

Rent, electricity charges, maintenance, and travel allowances for the team members are the expenses borne by the company. 

Technology has made remote working a possible thing. With the staff augmentation model, businesses can easily reduce the total expenditure and, at the same time, get quality services. 

6. Tax burdens can be eased

Based on the company’s location, it will have to incur specific taxes to maintain its company operations. Different factors affect the tax payments for businesses. This includes salaries, properties and sales. 

Thus, staff augmentation can save a lot for the business. Usually, staff augmentation contracts have all fees bundled together, so there are no separate costs. 

7. Manage payroll costs for the remote workforce

Employees are usually concerned about their salaries. However, changing salaries can be difficult. Here, business gets the benefits of staff augmentation, which can be a plug-and-play setup. 

Businesses opting for staff augmentation can benefit from a skilled workforce with lesser costs.  

8. Save technical costs

Setting up a physical office is a difficult and expensive task. Most businesses mitigate these costs by enforcing strategies like BYOD (bring your device). However, there are still costs like reimbursement to settle the expenses for all parties involved. 

The staff augmentation allows the businesses to avoid technical costs and hefty internet charges.

9. Keep up with low turnover rates

Staffing companies usually take care of employees under staff augmentation, and turnover rates can be comparatively low. Even if a person is switching, there is a continuity and replacement plan.

10. Pick and choose talents from all over the world

Earlier businesses relied on the personnel available locally. This would restrict the talent and skill set required for the projects. But the situation now can be altered through the implementation of staff augmentation. You can access talent all around the globe. 

With staff augmentation services, you can offer quality services as you gain the expertise of highly qualified professionals. This can create multiple opportunities and gain a major advantage over the market. 

Read More: The Real Cost Of An Employee Vs Cost Of A Contractor