IT Staff Augmentation: Meaning Explained, Advantages & Risks For Small Businesses

One strategic move that helps non-tech companies narrow the skills gap, increase efficiency, and adapt to rapidly shifting market conditions.

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24 December 2024 3:06 AM
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IT Staff Augmentation: Meaning Explained, Advantages & Risks For Small Businesses

These days, technology is permeating every aspect of life and business. This indicates that IT is increasingly becoming a need for small firms rather than only a choice. But not all business owners have the funds to assemble a whole development, engineering, and analysis team. This is where the concept of IT staff augmentation, which, when used properly, may be a lifesaver, enters the picture. Let's examine its definition, operation, and benefits and drawbacks for small businesses.

IT staff augmentation explained

IT staff augmentation is a catchy name for a solution that enables you to temporarily hire external IT specialists to staff up your team. What if you needed to hire a mobile developer or DevOps engineer for something on a short-term basis? Instead of looking for a full-time employee, you hire an expert through a staff augmentation provider – a company that provides such specialists.

This model differs from classic outsourcing. If in outsourcing you give the entire project to a third-party company, then staff augmentation specialists become part of your team, following your processes and working under your control. Moreover, this creates conditions for greater control over the quality and compliance of the work with your expectations.

How does IT staff augmentation work?

The process usually includes several stages:

  • Assessment. You determine which specialists you need, their skill level and project deadlines.

  • Search for specialists. The provider offers candidates who meet your requirements.

  • Integration into the team. After the specialist is approved, he begins working in your team, adhering to your processes and tools.

  • Management and control. You completely control the process, distribute tasks and track the results.

This is a convenient model, especially for companies that want to retain control over development, but are not ready to increase their staff.

Benefits for small businesses

Why is this model so attractive for small companies? Here are the main advantages:

#1. Saving time and resources

Finding and hiring an employee is long and expensive. According to Teal, the process of hiring an IT specialist in the US can take from 23 to 38 days and cost a company about $4,000. Staff augmentation allows you to do without these costs. The provider has already found, checked and tested specialists, and you only need to choose the right one.

Moreover, small businesses often face a lack of budget for attracting highly qualified specialists on a permanent basis. Staff augmentation is a way to gain access to top personnel without the need to pay salaries and provide benefits.

#2. Flexibility

Uncertainty is part of the scene for small businesses. Maybe it's just that you need a tester for 3 months, or an analyst for a particular project. Staff augmentation allows you to form and reconstitute the team to perform particular tasks.

For example, it allows you to add more people to the team when the workload is high (e.g. on a looming deadline) and shrink the team when the project is over. This is crucial for companies dealing with seasonal or short term projects.

#3. Access to specialists

Finding an experienced developer or engineer for a small company can be hard. Staff augmentation gives you the easiest way to get access to highly qualified people which are difficult to get if you hire on your own. It is also an opportunity to get the narrow specialization specialists, e.g. working in the area of artificial intelligence, blockchain or cybersecurity.

#4. Acceleration of processes

Moreover you can begin the project with convenient access to specialists, or alleviate the deficit of development. This is especially necessary when there is (or is about to be) some new product released, or some existing system upgraded.

Risks and how to minimize them

While the staff augmentation model has many advantages, it is not without its drawbacks. Let's look at the main risks and how to avoid them:

  • Integration issues

Invited specialists may not fit into your team right away. This can slow down work.

How to avoid: Discuss your tech stack and workflows with the provider in advance to find specialists who can adapt quickly. Also, organize an introductory training or an orientation meeting so that new employees better understand the goals and tasks.

  • Data confidentiality

Handing over access to internal systems and data can raise concerns.

How to avoid: Enter into an NDA (non-disclosure agreement) and provide tiered access to data. Also consider using tools for monitoring and access management.

  • Excessive expectations

If your goals and tasks are not clearly defined, invited specialists may not work as expected.

How to avoid: Create a detailed technical specification and clearly explain your expectations. Regular checks and feedback will help adjust the work of specialists.

  • Dependence on the provider

If you rely entirely on one provider, you risk finding yourself in a difficult situation if cooperation is interrupted.

How to avoid: collaborate with several providers and distribute tasks. Also create internal processes that will allow you to quickly replace specialists if necessary.

Final words

IT staff augmentation is a powerful tool for small businesses that allows them to quickly find qualified specialists, saving time and money. However, like any model, it requires a competent approach and understanding of possible risks. If you decide to use this solution, choose a reliable staff augmentation provider and clearly define your tasks. Then you will be able to get the most out of it and successfully implement your projects.

And remember: technology is not only about large corporations, but also about you. Use it to grow and develop. In the modern world, flexibility and speed are your key advantages, and staff augmentation can be a great assistant on this path.