The prodigious requirement of skilled resources fueled the rise of advanced hiring and staffing strategies. With huge projects looming ahead, the last thing you want to worry about is hiring a skilled team that can work with you. The talent shortage is another challenge that is emerging and increasing day by day which deforms the recruitment strategies.
An extensive new Korn Ferry report finds that by 2030, more than 85 million jobs could go unfilled because there aren’t enough skilled resources. This could result in about $8.5 trillion in unrealized annual revenues.
IT Staff Augmentation Services have already created a lot of buzz, scaling more & more every day. Efficiency, affordability, and convenience are just a few reasons enterprises of all sizes rely on augmented staffing to get done with their projects.
What is Staff Augmentation?
Staff Augmentation is a strategy that enables enterprises to fill digital gaps on an immediate basis without having the cumbersome hassle of hiring. This simply allows enterprises to hire top-skilled professionals for niche projects without bearing the same cost of hiring a new in-house employee. This augmented staff collaborates with your core team members on a short or long term basis depending upon your requirements.
The reason why Staff Augmentation is so common is due to innumerable projects lining up during certain periods. While various enterprises have the in-house talent and expertise to handle all the varied demands, many don’t have specific knowledge or skills in a particular area. Thus, they are forced to augment their existing staff with skilled resources. A reliable IT staff augmentation enterprise’s success is measured by the KPI it defines.
Some Interesting Stats On
How COVID Boosted IT companies to Switch to IT Staff Augmentation Services
- According to a report by Statistica, the global outsourcing market in 2019 before the Coronavirus hit the world was $ 92.5 billion. And after the pandemic, the IT staff augmentation market size grew to $ 132.9 billion.
- With the strict lockdown implementations, IT companies went digital by incorporating Cloud Services for their employees and augmented teams. Gartner Inc. mentions that the total Cloud Service revenue grew from $ 214.3 billion to $ 249.8 billion.
- As per the Research and Markets report, the Global Revenue of Outsourced Customer Experience Market in 2019 was $ 78.8 billion, whereas after COVID-19, in 2020 was $ 82.6 billion.
- The Statista report for Worldwide spending in the outsourcing industry’s recruitment process depicts $ 15 billion in 2019, which grew up to $ 18 billion in 2020.
- By the end of 2021, Statista reports that IT outsourcing’s market size will hit $ 413.7 billion.
Surprising Benefits Of Staff Augmentation
The topmost benefit of partnering with a Staffing Augmentation Agency is cost-effectiveness. Since skilled resources are hired for a temporary time period, the enterprise does not have to bear the cost of a long term full-time employee such as expenses related to salaries, benefits, taxes, and other costs. Also, they might not have the specific skills to work on a particular project.
According to Glassdoor, the average company in the United States spends about $4,000 to hire a new employee, taking up to 52 days to fill a position.
Staff augmentation allows companies to hire on a short-term basis without compromising on the quality of talent. It also helps to cut the cost of training new employees as augmentation professionals are appointed based on their expertise in a particular area and need very little acclimatization training.
2. Easy Scaling
Sometimes there is an urgent requirement of abundant skilled resources due to a lot of upcoming projects that you can’t miss out on. While other times, when you cycle down for a few months your projects can be completed with the help of a few resources.
According to a report, countries like the UK are already losing about £63 billion a year due to 600,000 unfilled vacancies in digital technology.
At such times it’s difficult to find resources. Hiring new resources and firing them when not needed impacts the overall reputation of the company. Staff augmentation allows the flexibility to scale up and down whenever required. It enables enterprises to expand and contract their teams as per their preferences and convenience.
3. Operational Efficiency
Most of the enterprises spend high amounts of operational costs, especially during lean periods, with a minute return on investments. Staff augmentation agencies enhance operational efficiency by enabling flexible working platforms. When companies partner with staffing agencies, they do not have to incur the infrastructural costs of building, hardware, software, and operations at a new place. The experts either work remotely or from the workspaces of the staffing agencies.
In spite of the remote working scenario, professionals are entirely accountable to the staffing agency and their management. Along with the reduction in infrastructure costs, operational efficiency is also enhanced. Hence, staff augmentation services not only reduce the cost of hiring skilled professionals but also reduce the cost of operation. Such savings can be easily transformed into profits. It also maximizes operational efficiency and helps deliver high-quality results.
4. Access to New and Contemporary Opinions
Although experience comes with age, the millennial generation has got a lot more to offer when talking about contemporary worldviews. Having a fixed in-house employee network often leads to stagnation of opinions and ideas for business development, growth, and profit.
In this techno-clad world, emerging business demands for exceptional and innovative means to deliver results to the client. IT staff augmentation services enable the enterprises to engage with the outlook of a varied set of experts rather than operating with the same old-and-brick methodologies while implementing traditional strategies. Project-specific hiring allows better opportunities for any firm to leverage new ideas, latest technologies, and innovative strategies to propel their operations while delivering driving-edge solutions in less time.
5. Access to a Larger Talent Pool
Staff Augmentation Services is bliss for IT enterprises as it allows a fine blend of short-term resources as well as access to a larger talent pool of skilled professionals. Permanent hiring limits an enterprise’s ability to leverage available market talent.
75% of HR professionals believe that there is a skills gap among their applicants.
On the other hand, staff augmentation is mostly domain-centric and brings on the best techniques to surf deep technical skills with a larger pool of talent. It also enables companies to collaborate with experienced professionals skilled in their area of expertise and can benefit more from any project. It also ensures that professionals of your hire will deliver high-quality projects beyond your expectations.
Staff augmentation has already traveled beyond its inception phase. It is a popular model and is readily accepted as an alternative staffing model. Enterprises get the most out of this hiring model – be it flexibility, cost cutting, high operational efficiency, increased profits, or easy scaling options. Companies can enjoy the benefit of hiring skilled resources for a short period of time without any cumbersome recruitment hassles. Staff augmentation agencies like us serve as a powerful bridge between skilled resources and firms to render excellence. Want to know more about staffing services? Contact Us today for your business Staffing requirement.