When a company needs extra personnel to develop its projects, it can perfectly resort to the IT Staff Augmentation model to obtain the most qualified profiles in a short time. It is known that this model increases the productivity of in-house teams, since they join in focused 100% on the task or projects assigned to them.
Businesses already know the benefits provided by IT Staff Augmentation solutions, who with their flexibility and expertise add a lot of value to the projects they work on. But a recurring question for those who have not worked under this modality is the following: How much do I have to invest? It is very expensive? Is it cheaper than a fixed contract? We will answer all these questions in this blog.
IT Staff Augmentation: the most effective cost-benefit modality
One of the great advantages of the IT Staff Augmentation service is that it allows you to hire profiles in any country in the world. This benefits companies because, being a remote job, they do not have to invest in equipment or an office.
“In-house employees involve administrative and organizational expenses, such as office spaces, workstations and other facilities (...) IT Staff Augmentation companies run operations abroad and provide the infrastructure, workstations and facilities, which reduces the operating cost of their projects”, Fernando Delgado Montero, business executive at Nearshore Providers, said in a LinkedIn article.
IT Staffing company, in addition, usually takes care of payroll and all matters related to Human Resources, which also reduces the expenses of the company that hires them since it is one less task to take care of.
Is IT Staffing more expensive than in-house hiring?
This will depend on each particular project and company, but one of the positive aspects of the IT Staff Augmentation resources is that all the costs of hiring the profiles are included in the rate offered by the provider. This allows you to better plan your company's budget.
“Each software outsourcing company also adds their service fee to the total monthly talent cost so that as a client, you get a monthly bill consisting of each team member's salary and a service fee. In some cases, the service fee is included in each developer's salary. In any case, the total cost of hiring technological talent abroad (for example, in Ukraine) is 2 or 3 times less than in North America or Israel”, they explained in an article by 8Allocate.
So the answer is no. An IT Staff Augmentation service will not be more expensive than an in-house contract, since the company that hires it does not have to bear administrative expenses or of any kind: it only has to pay a fee for the hours that the resource works. added to your project.
“You don't have to worry about health insurance, continuing education and other benefits. So typically, even though different companies and agencies have different rates, this approach costs 20-30% less than hiring in-house,” they noted in a WebCreek article.
In addition, in-house hiring entails other types of expenses such as candidate evaluation costs, external recruiter expenses, costs of posting the vacancy on employment pages and costs of internal recruiters. None of these expenses are included in the IT Staff Augmentation service, which is a great benefit.
Areas where IT Staff Augmentation solutions helps to reduce costs
- Costs related to recruitment activities
- Costs and time spent on staff training & skills acquisition
- With IT Staffing solutions, you will hire the right resources
- Savings in monthly company expenses
- Travel expense savings
One of the great attractions of the IT Staff Augmentation service is that these professionals are generally experienced and trained for both the simplest projects and the most complex and demanding ones. For this reason, the companies that hire them should not invest in training, they simply spend a couple of hours informing them about the company and the particular project they will be working on.
“The staff augmentation resources are solid and would not require any cost of technical training; Plus, since onboarding can be done virtually, there are no travel costs or additional equipment, making the in-house onboarding process next to nothing. In this way, the increase in IT staff can not only save costs but also time”, they emphasized in a Chapter247 article.
But how much do you have to invest in hiring resources via IT Staff Augmentation?
This investment will depend on the type of project or product to be created, as well as the complexity, type of professional profile and working time. Meet with your trusted technology partner so that, together, you can quote the IT Staff Augmentation service taking into account the context of your project and particular needs.
Benefits of the IT Staff Augmentation service in your company
- As we have already been discussing, more than anything else, this outsourcing model helps companies reduce hiring costs, as well as save on full-time salaries and benefits, WebCreek points out.
- The flexibility of an IT Staffing team is incredible as you can scale your in-house team up or down on demand, whenever you need to. If you are in a busy season, you can hire the profiles you need and, when the projects are finished, you can end the employment relationship without inconveniences or commitments.
- You can also increase the specialization and expertise of your in-house team, hiring professional profiles with additional skills that you do not have.
- An IT Staff Augmentation company helps you quickly get the profiles you need in your company. This is an advantage today, as staff turnover is very high in the tech industry.
At Rootstack we have +10 years of experience supporting companies in their digital transformation. Do you need advice? Contact us!
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