What is Staff Augmentation & How Does It Work?

Staff Augmentation refers to the use of non-core employees like freelancers, contractors, and consultants.
The global staff augmentation services market is expected to increase at a 3.53% CAGR between 2021 and 2025, reaching a total incremental spend of $81.87 billion, according to market research company SpendEdge.

Why is the relevance for staff augmentation growing?

Read the purpose and all about staff augmentation in detail.


What Is Staff Augmentation?

The staff augmentation model is used for several reasons. It offers companies the flexibility to scale up or down its workforce as per the requirement. It also enables them to tap into specialized skills, expertise and levels of expertise that may not be available internally.

Is it good to have an extended team or is an in-house team better?

Staff augmentation is used to supplement an organization’s existing workforce with additional skilled personnel, typically on a temporary or project basis. This is done for a variety of reasons, including:

  • Handling an increase in workload or seasonal spikes in demand:
    • Staff augmentation helps organizations handle increased workloads or seasonal spikes in demand by providing them with additional personnel to manage the increased workload.
    • This allows the organization to maintain its current level of productivity and meet deadlines without the need to permanently expand its workforce.
    • For example, during the holiday season, an e-commerce company might experience a significant increase in orders. Rather than hiring additional permanent employees to handle this increase, the company could use staff augmentation to bring in other personnel with the necessary skills and experience to help manage the increased workload. This way, the company can meet the increased demand while avoiding the long-term costs and commitment associated with hiring additional full-time employees.
  • Accessing specialized skills or expertise:
    • Staff augmentation helps organizations access specialized skills or expertise that are not readily available within the organization by providing them with additional personnel who have the specific skills or experience they require.
    • Staff augmentation can be especially useful in industries with high demand for specific specialized skills.
    • Creating an extended team can be challenging to find and retain employees with the necessary expertise.
    • For example, a healthcare organization might need a specialist in data analytics to help them with a specific project. Rather than hiring a full-time employee for this role, the organization could use staff augmentation to bring in a consultant with the necessary skills and experience. This way, the organization can access the expertise they need without the long-term costs and commitment associated with hiring a permanent employee.
    • Staff augmentation can also give organizations access to a broader pool of talent, allowing them to find and bring in personnel with the specific skills or experience they need, even if these skills are not readily available within their local area.
  • Reducing costs associated with hiring full-time employees
    Hiring full time employees for small projects or temporary jobs can cost you more. Staff augmentation instead saves some cost for you. Keeping an extended team saves your man-hours to hire a full -time dedicated resource. Because in staff-augmentation you are focused on getting a particular type of a job.
  • Meeting tight project deadlines
    You get a highly focused 100% dedicated team to work on the project who is eager to finish the goals of the company. Sooner you get the output earlier you meet the project deadlines.
  • Responding to rapidly changing business needs or market conditions
    With an extended team through staff augmentation, you can quickly adapt to the rapid changing needs of the work. By using staff augmentation, organizations can ensure that they have the right resources available to meet their business goals as well as rapid business goals.

Why & When Do You Need Staff Augmentation?

Thinking to grow and expand businesses is not a challenge any more if you know how you can use staff augmentation. You need staff augmentation when:

  • The organization already has a team working on the project, but they want to add specialists to the team so they may focus on another aspect of it.
  • The company is working on a project or producing a technological product and needs to expand its team of engineers. These engineers must have skill sets that are uncommon in the nation, therefore the company considers hiring from outside.
  • The company desires regular direct communication with the group as well as familiarity with the programmers working remotely.

Staff Augmentation Benefits

Staff augmentation provides several benefits, including:

  • Access to skilled talent:
    By augmenting your staff with external resources, you can access a pool of experienced professionals with specific expertise to meet your project requirements.
  • Increased flexibility:
    Staff augmentation allows you to scale up or down your workforce based on your project needs without the commitment of a full-time employee.
  • Cost savings:
    Staff augmentation can be a cost-effective alternative to hiring full-time employees, as it eliminates the need for employee benefits, training, and equipment costs.
  • Improved efficiency:
    With an augmented staff, you can distribute the workload more evenly and complete projects faster, leading to improved efficiency and productivity.
  • Reduced risk:
    Staff augmentation helps reduce the risk of project failure by providing additional resources and expertise to ensure successful delivery.

How Does Staff Augmentation Work?

Staff augmentation is a flexible staffing solution that supplements a company’s existing workforce with external resources. The process typically works in the following steps:

  • Assessment the existing workforce:
    The company assesses its current workforce and identifies areas where additional resources are needed.
  • Outline Requirements:
    The company outlines its specific requirements, including the skills, experience, and qualifications needed for the project.
  • Connect with Staffing Partner:
    The company selects a staffing partner or vendor specializing in staff augmentation services.
  • Screening and Selection:
    The staffing partner screens and selects candidates who match the company’s requirements and presents a shortlist for consideration.
  • Onboarding:
    The company interviews and selects the best candidate for the role, and the staffing partner handles the onboarding process.
  • Integration:
    The augmented staff member joins the company’s existing team and becomes fully integrated into the project.
  • Project Delivery:
    The augmented staff member works alongside the company’s existing team to deliver the project, providing additional resources and expertise.
  • Termination:
    Upon completion of the project, the augmented staff member’s contract can be terminated, and the company can reassess its staffing needs for future projects.

What is a Staff Augmentation Model?

A staff augmentation model adds additional resources to a company’s existing workforce to meet specific project needs. In this model, the company contracts with a staffing partner or vendor to provide highly skilled professionals who work as part of the company’s team but remain employees of the staffing partner.

There are several different staff augmentation models, including:

  • On-site Model:
    In this model, the augmented staff member works at the company’s premises and is fully integrated into the existing team.
  • Offshore Model:
    In offshore staff augmentation model, the augmented staff member works remotely and communicates with the company’s team through various communication tools.
  • Project-based Model:
    In this model, the augmented staff member is contracted for a specific project, and the contract terminates upon completion.
  • Long-term Model:
    In this model, the augmented staff member is contracted for an extended period, providing ongoing support to the company’s team.

Staff Augmentation Vs Outsourcing: Which One Is Best For You?

Whether staff augmentation or outsourcing is best for you will depend on your specific requirements and goals. Both offer benefits and have limitations, and the choice between the two will depend on the particular needs of your project.

Staff Augmentation Outsourcing
Staff augmentation provides increased flexibility, access to skilled talent, and improved efficiency as the augmented staff member works alongside your existing team. Outsourcing can also free up internal resources, allowing your team to focus on core activities.
Staff augmentation is a cost-effective alternative to hiring full-time employees and reduces the risk of project failure by providing additional resources and expertise. Outsourcing provides cost savings and access to a larger pool of resources, as the vendor takes responsibility for the delivery of the project.
Staff augmentation is generally more expensive than outsourcing, and the augmented staff member may have a different level of expertise than a full-time employee. Outsourcing can lead to a lack of control and communication difficulties, as the vendor may be located in a different time zone or country. There is also a risk of cultural differences, which can impact project delivery.


Also Read : Marketing Staff Augmentation Guide for 2023

Final Words

Today’s businesses are in a very competitive market. The competition is tough, and it is essential that companies retain their top talent as well as invest in the right talent. The challenge is that it is difficult to find the right talent, and companies that are looking for fresh talent are often forced to look outside their local markets. The key to overcoming this challenge is through the use of staff augmentation.

For more details and requirement of extended staff contact hello[at]noboruworld.com