Here’s your quick guide to the staff augmentation model

What is the staff augmentation model?

The staff augmentation model is a flexible staffing method that adds skilled outside workers to your existing team, so you can fill gaps fast without hiring full-time staff.

• It lets you scale your team up or down as project needs change.
• It gives you quick access to niche skills, often at a lower cost.
• It keeps your current team in place while you add extra hands.

Hiring new employees often costs more than keeping the ones you have. Still, there are several low-cost ways to grow your workforce without replacing workers. For example, you can use outsourcing, cross-training, and automation.

Among these strategic staffing options, one stands out. The staff augmentation model lets you add people while you keep your current team. So it works well when you need extra skills for software development projects. As a result, it also helps you follow global staffing trends.

In the 426th episode of the Outsource Accelerator Podcast, Sourcefit President and CEO Andy Schachtel discussed outsourcing to the Philippines and the staff augmentation model.

Staff augmentation defined

Staff augmentation is a staffing method that expands your current team with new workers. In short, it boosts your capacity without the cost of hiring full-time staff.

As the Sourcefit CEO put it, this method is “a great way for [companies] to ensure more business continuity and lower costs, competitive pricing going forward into the future.”

Firms often use it to meet short-term demand. For example, it can “fill in the gaps and then and then provide the service that [the client] need.”

In addition, it lets you bring in people with special skills when you need them. So it helps when you want to add a specific talent to your team.

Through staff augmentation, you can reach a much bigger talent pool. Because of this, global talent acquisition becomes far easier. Still, it is safer to take it slow when you hire from beyond your local area.

This matters a lot. As Andy advised, “of course, if it’s [the client’s] first foray into outsourcing, they’re going to want to take a cautious approach.”

How does staff augmentation work?

Here are the three steps of the staff augmentation model.

Gathering project requirements

First, you must define your project needs. This means you check how your current team performs. Next, you spot the gaps you need to fill. To guide you, ask a few simple questions:

• Is it time to expand your business?
• When is the season most in demand for your company’s services?
• In which area of your business will you need extra people most?

You must also make sure the added worker adheres to the organization’s standards. This “[is] a very sensitive area because, you know, of course, people take the rights of employees and the local labor laws very seriously in each market.”

So this first step ties the whole plan together. As a result, the project gets the right skills from people who match your needs.

Selecting the right team

Once your needs are clear, you can start to recruit the right people. For example, you may use staffing agencies, job boards, and social media.

Recruiters must then check that each added worker fits these points:

• Skills
• Capabilities
• Level of knowledge
• Collaboration tools
• Availability
• Project schedule

In short, this step brings in a team that fills your skill gaps. As a result, your workforce stays flexible and ready for change.

Onboarding the selected team

After you pick the right people, you can start onboarding. Next, you help the new workers join the team and learn your values.

Some may take longer to become a culture fit. Still, as Andy noted, “as long as they’re they’re engaged, and that [companies are] putting clear expectations in place for their outsourced staff then, they can be successful using [this] approach.”

Project managers play a key role here. For the best results, follow proven offshore team best practices when you set expectations. As a result, you can scale your workforce and hit your goals.

Staff augmentation vs. Managed services

Staff augmentation is a quick way to expand your team with people who share your staff’s skills. As the Sourcefit CEO asked, “if someone’s working remotely down the street or in the next town over, why not hire someone for a fraction of the cost who can do the same work, who just happens to be sitting in another country?”

Managed services take a wider view of IT management. In this model, a third-party provider runs and maintains your IT infrastructure.

Managed services also tend to be more transparent. Because of this, providers must give you clear and accurate reports. To back this up, Andy said “managed services have a high level of transparency.”

3 types of staff augmentation

There are several types of staff augmentation. Here are the three main ones. They also map closely to common offshore outsourcing models.

1. Commodity

Commodity augmentation is a strategy where a firm hires temporary workers for a set project or task.

2. Skill-based

Skill-based augmentation is where firms map out the skills a project needs. This works for both short-term and long-term work. When you plan it, keep three points in mind:

• Determine the needed skills and expertise
• Locate specialists with these talents
• Add an expert to your team and manage the connection

3. Highly-skilled

The highly-skilled model focuses on finding an outsourcing partner with rare, top-tier skills. As Andy noted, “some clients need more help. They need us to be more involved, and they need more from us.”

So in this model, you must go beyond what clients expect. For example, one key measure is the added worker’s ability to deliver top results. As a result, the client gains a real edge over rivals.

Choose the staff augmentation model that suits your organization

It is nice to use all three types. Still, choosing the most suitable one matters most. The right choice can boost your in-house team by adding outside tech talent.

Firms with an in-house development team may use staff augmentation to fill skill gaps. So they can meet project demands without hiring full-time staff. It can also cut labor costs by a large margin. As a result, you get more from your people and your budget.

Is staff augmentation right for you?

When you bring temporary people in-house, you often gain more control. This is true when you hire “the right types of people.”

Still, weigh the pros and cons first. So dig into the process before you commit. You must also decide which staff augmentation model fits your business best.

If you want to learn more, Andy Schachtel would be happy to connect with you. You can also visit Sourcefit’s official website and listen to episode 426 of the OA podcast here.

Frequently asked questions

What is the staff augmentation model in simple terms?

It is a way to add skilled outside workers to your team for a set time. So you fill gaps fast and keep your current staff in place.

How is staff augmentation different from managed services?

Staff augmentation adds people who work under your direction. Managed services hand a whole function to an outside provider. As a result, you keep more day-to-day control with staff augmentation.

When should a business use staff augmentation?

Use it when you face a short-term spike or a skill gap. For example, it works well for software projects that need extra hands fast.

Does staff augmentation save money?

Often, yes. You avoid many costs tied to full-time hiring. Still, you should compare rates and plan the work before you start.

Which type of staff augmentation is best?

It depends on your needs. Commodity suits simple tasks, skill-based suits defined projects, and highly-skilled suits complex work. So match the type to the job.

Key takeaways

• The staff augmentation model adds outside talent to your team without full-time hiring.
• It follows three steps: gather requirements, select the team, and onboard the new staff.
• Managed services differ because a provider runs a whole function for you.
• The three main types are commodity, skill-based, and highly-skilled.
• Pick the type that matches your project, budget, and control needs.