Companies across the globe are inclining towards extending their existing team to meet the market challenges while remaining competitive. With a substantial staff, business demands can be met in a given time seamlessly.
Statistics says the market size of the IT outsourcing industry is higher in America than in the Asia Pacific and EMEA regions. The total market share of IT outsourcing has exceeded 130 billion US dollars in revenue. However, the figure varies from distinct industry & services to segments included in the market.
Trends also says, the technology and IT consultation services take the largest share of the industry. As per Information Service Group, the total value is more than 25 million US dollars. The global revenue of outsourcing IT consulting was estimated to have mounted to 66.5 billion US dollars in 2019.
Development team augmentation is a part of IT consulting service that helps extend your team of developers. This outsourcing method is cost-effective and only promises highly qualified programmers to benefit your organization from day one.
Understanding the Meaning of Development Team Augmentation
A staffing augmentation also colloquially termed as development team augmentation is a tested and verified model that evaluates the need for flexible talent in your organization. Moreover, it assesses talent management strategies or planning guides of the organization for adding short-term staff and removing the resource that is not useful.
Augmentation of the development team originated from the staffing agencies or an online talent platform that offered experts to the IT industry and tech verticals on an hourly basis.
In 2019, the global staffing Industry generated 500 billion US dollars as per staffing industry analysts’ market report.
The process has changed since then. Today most enterprise software development companies offer staff augmentation as an additional service. Different companies offer distinct models for extension of the staff. A few companies still follow the conventional methods of outsourcing resources whereas many have switched to new models. There are more advantages of extending your development team, which will see after the models of team augmentation.
Hiring Model Types
The models applied for recruiting a team of developers for a firm consists of two types of collaboration.
· Short-term Collaboration
Any company must collaborate for short-term team augmentation at the beginning. This can allow the firm to evaluate the need for long-term resources in the future as well as benefits obtained from this kind of collaboration. Also, short-term collaboration can be most helpful during the absence of the existing staff.
· Long-term Collaboration
When a company has long-duration projects, then long-term collaboration seems fruitful. This type can seamlessly fill the technology-related gap, reducing operational cost as well as extensive hiring process.
Advantages of Outsourcing Development Team Augmentation
Companies have the advantage to extend their resources at any point in time. The flexibility to fill the skill gap without long-term commitment is diverse yet compelling.
· Employ Professionals
Relying on team augmentation can help you with the skill set that your company lacks. You can boastfully declare your technology expertise by hiring a resource with proficiency in a particular vertical or language required for your project.
· Quick Scalability
We all are well aware of the global pandemic and its impact on organizations as well as the workforce. Integrating staffing augmentation can help in planning resources in the right direction. This helps organizations to easily scale down or scale up whenever needed without letting the changes impact direct hires.
· Flexible Staffing
One of the main components of augmenting your existing dedicated software development team is flexibility. Once you dictate the requirements of your business to the outsourcing agency, they can offer you the best personnel for the position. Staff augmentation can assist you with easy replacement of the staff to enhance productivity.
· Job Security
When a new employee is hired for a particular project with a requisite skill set, it may take current employees with the impression of job insecurity. Their stability doubt may result in loss of focus and productivity. Team augmentation can offer security to the current and stable employees. Moreover, extension of the development team can assist the project requiring the latest technology integration as well as opportunity to learn more.
· Assured Quality and MVP
Even startups can leverage from the software development team augmentation. You are ensured and secured in terms of funding. Extension on technical staff offers desired prototyping, MVP, or a first-round of product. Moreover, the addition of expert cover specifics, such as qa software testing and assurance.
· Retain Controls
Companies can have better and more control over the projects than ever before through augmenting the team model. With the best and skilled staff employed, you can be assured of consistent quality and standards of the project without much intervention.
· Increased Visibility
The new skills integration can help in handling voluminous incoming projects ranging from new to existing clients. This way you can improve the visibility and offer timely deliveries.
Team augmentation offers a cost-effective solution that relieves you from the cost of finding, recruiting, and hiring a team or an employee for the specific position. This model also offers complete Online payroll services so you do not have to worry about managing taxes, salary, etc.
How Team Augmentation is Different from Other Models?
Team augmentation is not restricted to a specific field or service providers. You can extend your team wherever needed. Whether you need a team for outsourcing purposes or managed services, augmentation works everywhere.
However, before augmenting it is essential to evaluate all possible scenarios to comprehend the best engagement type.
Integrating Managed IT Consultation Services
A managed service model is mostly giving away your control over the entire project to the service provider, which includes the cost and risk management, maintenance, reports, support, and other related factors.
Despite being time-saving and offering financial simplicity, there might be certain cons that you should focus on.
- As developers polish themselves by learning the latest tools and technology, their cost of hiring them increases, which most companies fail to afford. Finding the right customer that understands the need for the right skill despite the cost is another challenge.
- Another disadvantage can be the loss of flexibility that team augmentation offers its customers.
Project outsourcing is also a popular model adopted by IT companies. In order to gain maximum benefit you should know how to select the right outsourcing company. The main property that separates the development team augmentation from project outsourcing is the scope of control.
IT service providers are the key handlers and delegate every step on the project in the project outsourcing model. The service providers ensure recruitment, training, and management of the development team or an individual assigned or employed for a project.
Whereas, the customer has complete freedom to delegate roles and responsibilities in a development team augmentation model. However, the recruitment and training of the best resource are in the hands of the staffing service provider, still, the customer gets complete visibility of all processes undergoing.
Key Aspects to Consider when Approaching for Team Augmentation
Certainly, proven advantages of this outsourcing collaborative model for your existing team is evident and undeniable. But, before looking into staff augmentation, you must have this checklist complete.
- Understand the internal process of the vendor and evaluate any shortcomings that can affect the quality of your final product.
- Ensure complete transparency in the financial and relatable terms of cooperation. The charges must not be variable, the vendor after comprehending the needs of the business must only suggest a model with its fixed fee.
- Sometimes you may find the best fit resource for your organization in no time. Other times you may have to wait for the best fit to be found. So keep patience.
- Always remember, the new associated team is not well versed with the standards and culture of the company, so may take time to adjust. But this does not mean that they compromise with the quality.
- Ensure you have an experienced and profound team augmentation by the service provider. So that you do not have to put efforts on explaining customer expectations.
- Your contract with the service provider has clear areas of responsibility. Understand that each one of them is clear and are met as mentioned.
- Security of your intellectual property is the most important aspect for any customer as well as the vendor to ensure the scalability of both parties. With the help of NDA (Non-Disclosure Agreement), a vendor can assure the company of security regardless of cooperation type.
In a Nutshell –
Today’s business demands change from the legacy or conventional ways of work. Only large organizations with the latest tools and resources would scale has become a myth. Today, even a small or mid-size firm can scale by meeting the demands of the business, meeting customer satisfaction as well as remaining competitive. That being said – the pros of associating with an IT professional service provider are intangible that focuses on the consistent production and deliverables by the in-house team without replacing the skilled through a so-called staff augmentation or development team augmentation.