IT Staff Augmentation: Guide to Improve Communication

Introduction

Every single part of our life relies on technology during the 21st century. Moreover, companies can see a huge growth in the technological advancements. As a result, this growth has increased the demand for IT Augmentation professionals.

A study by Statista has predicted that the IT sector will generate a revenue of $1570 million by the end of 2027. However, this growth has posed an abundance of challenges for the organizations. One of them is a shortage of highly skilled IT professionals.

The number of job openings for IT professionals is growing, but the lack of the right skills keeps the void as it is. According to one research by PwC, the United States alone will incur a loss of $8.5 billion by the end of 2030.

Hence, companies are using IT staff augmentation services to fill skill gaps instead of hiring more employees.

If you are an organization that is looking to leverage IT services, then this blog is for you. In this guide, we will learn everything about & around staff augmentation. Let’s get started!

What is IT Staff Augmentation

It is when organizations hire remote developers globally to fill skill gaps. By using the staff augmentation model, companies can hire remote tech talents to meet the immediate requirements. Furthermore, the companies that do not have time to implement a lengthy hiring process then this method comes to their rescue.

Hiring remote developers can help organizations achieve smooth integration between both in-house teams & remote teams.

Why should you consider IT Staff Augmentation?

The amount of advancement in technology has led organizations to boost their productivity & efficiency. But, it is unlikely that every organization would have the right resources to meet the technological advancements. Therefore, it becomes crucial for organizations to use staff augmentation services to meet the uncertainties.

The remotely dedicated team will carefully work with your existing team to achieve a successful project deliverability. Moreover, you should consider hiring staff augmentation services to get access to a diverse pool of IT professionals.

Furthermore, hiring a staff augmentation company will also help you reduce the costs incurred by a lengthy hiring process.

Want to know more about top It Staff Augmentation & Companies?

Check Out the Top 10 IT Staff Augmentation Companies in India.

Different types of Staff augmentation services

Project-based augmentation

This method lets organizations hire software engineers with expertise in software development. Project-based teams focus on working towards a specific software development project.

Skill-based augmentation

When organizations hire software development teams to bridge required skill shortages. By, hiring these teams companies ensure to enhance their skill gaps effectively.

Time-based Augmentation

Using this method enables your company to hire remote developers to work for a specific period. Moreover, the organization will dismantle these teams after project completion.

Hybrid staff augmentation

When an organization combines different models, it is called a hybrid model. Using, this model will allow the organization get double the benefits

Onshore Augmentation of IT team members

When a company hires augmented staff from the same country, it’s called onshore augmentation. By hiring such teams companies aim to fulfill the technical skill gaps.

Nearshore Augmentation of IT professionals

Hiring a development team from a nearby country with the same time zone is known as nearshore augmentation. Additionally, by using the nearshore model companies ensure a smooth development process.

Offshore staff augmentation

When organizations opt for working remotely they hire offshore staff. However, hiring an offshore development team can be riskier if the strategy is not implemented thoughtfully.

Dedicated teams

When companies want to hire a remote team to only focus on a specific project, they use this hiring model. Dedicated teams will bring a high set of skills & expertise to the project management.

Based on the specific requirements & needs organizations can choose the best fit that meets their requirement. Further, let’s understand the pros & cons of IT staff augmentation.

What are the Pros of IT Staff Augmentation services?

By using IT staff-augmented services organizations get the luxury to observe five pros for their business. Let’s learn about all the advantages of Staff augmentation.

Access to global talent

Organizations can access more IT talent worldwide by using staff augmentation services. Moreover, this method allows the companies to hire the right professional for a specific expert task.

Cost savings

By leveraging staff augmentation services, companies can attain cost-cutting. Staff augmentation services allow the companies to minimize the hiring process to save both time & money.

Flexibility

This method lets the organization adjust their development team size according to their needs. Staff augmentation services allow the company to hire developers temporarily.

Faster time to market

Organizations that use IT outsourcing services get access to the global talent pool. Thus, it allows them to attain speedy project deliverability.

Reduction in scope of risks

By hiring an external team, you can reduce the risks of hiring more in-house developers.

What are the drawbacks of Staff augmentation?

Despite the advantages like cost savings & flexibility, there are still a few challenges companies face when hiring remote developers. Let’s learn some of the most significant drawbacks of Staff augmentation.

Communication barriers

As remote team management comprises IT professionals from across the globe, it becomes difficult to maintain communication. It’s difficult for organizations to have smooth communication when remote team members speak different languages.

But, using effective communication channels can help organizations streamline the flow of information.

Additionally using communication tools like Slack, Google Meet & Zoom can help the organizations in streamlining the communication flows. Organizations should create various ways to communicate, such as emails, messaging apps, and video conferencing tools, for smooth communication.

Lack of control

By using staff augmentation, you are handling the project control to external teams. This handover can pose some severe data security risks.

Steps to follow when hiring IT Staff Augmentation services

IT augmentation services comprise five steps. Keep reading to understand all the steps.

Identify the Needs

Before opting to hire staff augmented services it is necessary to identify your needs & requirements. Additionally, the companies should state the number of resources & skills required to outsource.

Determining the scope

Further, the organization needs to define the roles & responsibilities & project duration to all the remote members. Moreover, they should also state the skills & expertise required.

Choosing the right candidates

Out of the shortlisted candidates, the organizations should hire the best fit of candidates that meet their requirements.

Onboarding & integration

After choosing the right fit, the next step is to run a thorough induction process. The company must provide the right information to each remote team member.

Management & Oversight

During the development process, the organization should run a thorough process to oversee the progress of the work. Moreover, they need to provide constructive feedback for improvisation.

How to choose IT staff augmentation

Look for relevant experience

Before hiring an external staffing partner, companies should look for the industry-level experience of the staff augmentation company.

Assess the technical expertise

It is important to analyze the technical expertise of the outsourcing vendor before finalizing the deal. The skill set availability, project management efficiency, etc. need to be analyzed.

Checking cultural fit

While hiring remote employees, it is important to check the cultural compatibility of the vendor organization.

Communication skills

Analyzing the communication skills of the vendor part becomes an important point of consideration during the hiring process.

Reviewing data security measures

The organizations must check the data prevention measures taken by the outsourcing company. Data security is a concern to be mindful of.

Evaluate Cost

Before outsourcing IT services, it is important to evaluate the costs charged by outsourcing vendors. Later, choose the option that fits your budget & fulfills your requirements.

Connecting with references

Before hiring IT outsourcing services, it’s important to check references to find the best fit for your needs. Additionally, taking proper feedback from past clients will be quite helpful in decision-making.

IT Staff Augmentation: How’s the future?

It has a promising future. A report by Grand View Research predicts that the market for augmentation services will be worth $147.2 million by 2028.

The growing use of Cloud computing, AI, and IoT is leading to more staff-augmented services being used. Moreover, after COVID-19 remote work culture has become popular.

Advancements in technology have encouraged companies to adopt staff augmentation services to hire developers to meet the skill gaps.

Wrapping Up!

By using IT staff augmentation organizations can hire remote developers to meet the skill gaps. Based on the considerations stated above companies can find the best fit to achieve a successful project completion.

We at Acquaint Softtech specialize in IT staff augmentation for the past 15+ years. Our team of developers can help attain a successful project deliverable.

Remote Team & In-house Team: A Seamless Integration

Introduction

In the rapidly changing business era, the working pattern has seen a transformational change. Individuals are on the path of embracing remote work & freelancing. Companies are on the hunt to hire remote developers from across the globe.

As 16% of businesses are fully remote & with a staggering 1.57 billion freelancers globally, it is proof that remote work is here to stay. A tech giant like Google has seen a significant number of contract workers out of their workforce. A total of 54% of the workforce comprises freelancers which exceeds the ratio of full-time employees.

Firstly, it is necessary to understand the value that remote developers bring to your tech team. Remote employees provide flexibility, specialized skills & the ability to scale your workforce as per the project needs. Adopting remote teams enables you access to global tech talent available to work in different time zones.

Now, let’s start with the term Remote Team.

What is a Remote Team?

A remote team refers to a group of employees who collaborate to work from different geographic areas. The concept of working remotely has been around for a long time but made the buzz after the advancements in technology.

Today, a major chunk of the workforce comprises remote teams. The figures for remote work adoption are higher in the IT sector. Almost, every company is looking to hire remote developers to meet their software solution requirements.

Big companies like Shopify & Twitter are hiring remote developers by embracing a distributed teams model. Other players in the market are following this trend due to the perks it provides.

From an employee point of view, remote teams provide advantages like convenience & flexibility in work hours. From the viewpoint of the company, remote teams provide a potential reduction in costs.

Apart from the advantage stated above, remote teams offer an abundance of benefits for both employees & enterprises. However, if your business is still in its beginning phase, it is likely that will find it to to manage remote teams effectively.

Despite, the availability of technology, it will be difficult for your team to adapt to the changing needs.

Every team member needs to adjust to remote work. there are instances when their productivity will decline. Each member needs to have essential remote work skills to adapt to the changing needs.

They also need to adjust to the new roles of communication & collaboration. Remote work blurred the line between personal & work life, causing an increase in stress.

Now let’s first understand the advantages of Remote teams from an Employee perspective.

Hiring remote developers leads an organization to fulfill their project needs.

Acquaint Softtech is a Custom Software Development & IT staff augmentation company that can help you hire remote developers who meet your project criteria,

Hire Remote Developers Now!

What are the advantages of remote teams: From an Employee viewpoint

Enables work-life balance:

A study by PwC states that 67% of employees can balance their work life after choosing to work remotely. Work from work-from-home model decreases the commute time & increases the time for rest, thus allowing one to maintain a quality life.

Increases productivity:

As remote employees get a lot of time to rest, it increases their productivity. The number of distractions is less after working from home.

Improvement in Employee retention rate:

As organizations have embraced working from home, it encourages employees to stay with the company for a long time. One report by Owl Labs states that 74% of employees stayed in the same company when they were provided an option to work remotely.

Improved lifestyle choices:

Remote work enables a healthier lifestyle, as it allows an employee to enjoy their habit while at work. Doing this has shown a decrease in burnout which is as low as 26%.

Customized Work Environment:

Embracing remote work allows an employee to customize their work setup keeping their comfort & productivity in mind.

Now, let’s understand the advantages of remote teams from an Employee viewpoint

What are the advantages of Remote teams: From an employer’s viewpoint

  • There are a bunch of advantages every employer gets by hiring a remote team. We have covered each advantage from an employer’s viewpoint in our previous blog.
  • Check out our blog on Remote Team: A first aid to overcome project management
  • Now, let’s understand the best practices for hiring software development outsourcing services for managing a remote software solution project.
  • Before moving into understanding best practices for software development outsourcing let’s understand what the term means.

What are Software Development Outsourcing Services?

When any organization tends to build a remote team, they would choose any one of the two options. First, they will look to run through a hiring process to hire top-talent of remote candidates from across the globe. Secondly, they would hire external software development outsourcing services to meet their web development & software development needs.

Let’s understand the term Software Development outsourcing services.

When an organization outsources its software development project to an Outsourcing Company it is known as Software Development outsourcing.

In the next step, every organization will work towards integrating their in-house team & remote team.

Let’s understand how any organization can seamlessly integrate its in-house team development with remote teams.

Steps to achieve seamless integration of In-house team & remote team

An in-house development might benefit a lot when integrated with a remote team. This integration might not be for the long term but it would give fruitful returns. The integration can help the in-house team improvise their soft skills like communication skills & teamwork & problem-solving skills.

5-Steps-to-achieve-seamless-integration-of-In-house-team-&-remote-team.jpg

Let’s understand how an organization can achieve seamless integration of both teams.

Establish effective communication channels:

While integrating remote & in-house teams it is necessary to build systematic communication channels. Make a detailed plan of what communication tools need to be used, and what are communication channels to be used.

An organization can use tools like Slack, Skype & Google Meet, & Zoom to maintain a smooth flow of communication.

Stating diversified communication channels like Emails, & social media can help achieve a hassle-free communication flow. It is also necessary to define the mode of communication to be used like video calls, audio calls, etc.

Using Project Management or Collaboration tools:

Defining what project management tools you need to use for managing each proejct activity is necessary. Popular project management tools like Asana, Wrike, Zoho, etc. can help manage software development projects smoothly.

These project management tools will help in smoothening the collaboration process and add value to your tech stacks.

Regularly providing feedback & reviews:

Constructive feedback can help you improvise. It is important to provide constructive feedback to your team. Based on the set KPIs, giving proper feedback can help a team member improve. Continuous feedback can help achieve a successful project deliverability.

Initiating team-building activities:

Including your remote team in various team-building activities can help you achieve & build a harmonious work environment. Conducting virtual team-building activities like online games, & virtual coffee breaks can help in achieving team unity. Building interpersonal relations is the secret to achieving a successful integration.

Providing equal opportunities:

After delegating the development project to outsourcing teams it is important to utilize the skills of an in-house team. To do this, the organization should assign the task of working on core job responsibilities. By doing, this the organization would be successful in achieving a sense of equality in the workplace.

Closing Notes

To meet the skill shortages, companies & enterprises are looking to hire remote developers to meet their project management needs.

Organizations can either choose to hire an Outsourcing Software Development Company or build a team of remote developers.

Based on the size & requirements of the proejct, the organization can choose the best fit for their software development project.

Best Practices for Software Budget Transparency & Analysis

Introduction

One of the most challenging aspects of software development is managing the budget and the cost of the project. Software projects are complex, dynamic, and unpredictable. This translates to more challenges in estimating the time and resources of the project. It also means that creating an accurate budget is an uphill task.

Transparent budgeting is the process of creating and communicating a clear and realistic budget. This is usually based on the scope, requirements, risks, and assumptions of the software project.

Comprehensive cost analysis is the process of evaluating and optimizing the cost-effectiveness of your software project. This considers the initial development cost and also the total cost of ownership (TCO) of the software.

In this blog post, we will discuss some best practices for transparent budgeting and comprehensive cost analysis for software development projects. It also explains how they can help you deliver high-quality software within your budget constraints.

Cost of Software Development

The cost of software development refers to the total expenditure incurred in the process of designing, coding, testing, and deploying a software product. This cost encompasses various elements and considerations.

It also means making several assumptions. A transparent software budget is where you share the finer details of the budget. Project managers perform an in-depth cost analysis by breaking down your budget into smaller components.

The software development team you choose will affect the cost as well. The cost to develop software in-house tends to be more than those outsourcing it. Outsourcing and IT staff augmentation tend to cost less.

Several factors influence the cost of your software. Some of the obvious factors include the type of software, its complexity, technology, and features to add. Besides this, there are several other factors that also directly impact your budget.

This includes issues like scope creep, unforeseen costs, changes, and more. A failure to anticipate such issues, including that of technical and human resources, often leads to budget overruns.

For example here is a simple breakdown of the cost to develop a software:

  • Design cost: 10%
  • Development cost: 50%
  • Testing cost: 25%
  • Project management cost: 10%
  • Maintenance cost: 5%

Factors Affecting Software Development Cost

Various factors influence the cost of software development, each contributing to the overall expenditure associated with creating a software product. Understanding these factors helps in effective budget oversight and resource allocation. Here are key factors that influence software development costs:

Project Scope:

The breadth and complexity of project requirements significantly impact costs.

Project Size and Complexity:

Larger and more complex projects generally require more resources and time, affecting overall costs.

Technology Stack:

The choice of technologies, programming languages, frameworks, and third-party tools can influence costs.

Development Team Composition:

The size and expertise of the development team play a crucial role.

Geographic Location:

Development costs vary based on the geographic location of the development team.

Project Timeline:

The duration of the development project affects costs.

Quality and Testing Requirements:

Rigorous quality assurance and testing processes contribute to costs. Automated testing, performance testing, and security testing may add to the overall expenditure.

Customization and Integration:

The extent of customization required and the level of integration with other systems impact costs.

User Interface (UI) and User Experience (UX) Design:

Investing in high-quality UI/UX design can enhance the user experience but may also add to development costs.

Change Requests and Scope Creep:

Changes in project requirements or scope creep during development can lead to additional costs.

Client Involvement and Communication:

The level of client involvement and communication needs can influence costs.

Outsourcing and Third-Party Services:

Leveraging external services, consultants, or outsourcing specific tasks can affect costs.

Post-Development Costs:

Maintenance, support, and updates post-deployment contribute to the total cost of ownership.

There is more to software development than you can imagine. Understanding and carefully considering these factors during the planning phase helps project managers and stakeholders make informed decisions. This leads to more accurate cost estimations and successful software development projects.

Here are several statistics highlighting the importance of the need for transparent budgeting:

  • 70% of organizations choose to outsource software development.
  • 17% of software projects fail to meet their goals.
  • The ERP projects with budget overrun issues in 2022 were 41%, while those in 2021 were 60%. In 2017 and 2011, approximately 74% of such projects had this issue.
  • According to a study by McKinsey and the University of Oxford, the cause of budget overruns varies. 13% are due to missing focus, while unexplained issues are 6% and execution are 11%.

A good real-world example is the comprehensive study by McKinsey. According to this study, 66% of enterprise software projects have cost overruns. The study found that a third of these projects go beyond the estimated schedule. Over 20% of them fall short of the benefits initially planned. That’s not all this study revealed.

It also found that although a high percentage of companies survive the cost overrun, approximately 17% of the IT projects suffer major budget issues. The budget overrun problem of these firms is so bad that it threatens their very existence. The study was in collaboration with the University of Oxford and was a large one. It included data from various industries and over 5400 IT projects.

Benefits Of Software Budget Transparency

Budget transparency is a critical practice that involves openly sharing financial information and decisions with stakeholders. Budget transparency is the practice of sharing all relevant information about the budget with the stakeholders.

It is essential for ensuring accountability, efficiency, and effectiveness. This type of transparency ensures that everyone understands the usage and allocation of financial resources. Budget transparency can also help prevent budget overruns.

Here are some of the main benefits:

  • Transparency builds trust among project stakeholders, including clients, investors, and team members.
  • Transparent budgets provide stakeholders with the information they need to make informed decisions.
  • With a better understanding of the resource allocation, cost breakdowns, and potential risks, stakeholders get more involved. This allows for better decision-making throughout the project life-cycle.
  • Transparent budgets facilitate early identification of potential issues or deviations.
  • It becomes easier to spot anomalies, address challenges promptly, and prevent minor issues from escalating into major problems.
  • Budget transparency allows for proactive risk mitigation.
  • Allows stakeholders to develop strategies to mitigate risks collaboratively.
  • Transparent budgets ensure that financial decisions align with the overall goals and objectives of the project.
  • Facilitate clear and effective communication between the project team and stakeholders.
  • Communication is more efficient, reducing the chances of misunderstandings or misinterpretations.
  • Budget transparency encourages accountability among team members.
  • Enhance the project’s adaptability to changes.
  • Strengthens client-provider relationships.
  • Provides a clear picture of the budget-related concerns of the project.
  • Ensures the team is more proactive and benefits from a cost-aware mindset.

Best Practices for Transparent Budgeting and Cost Analysis

Here are the best practices to follow:

Define clear project scope:

  • Establish a detailed project scope document that outlines deliverables, functionalities, and timelines.
  • A well-defined scope provides a foundation for accurate cost estimates.
  • Involve key stakeholders in the budget planning process.

Engage stakeholders in budget discussions:

  • Foster open communication with stakeholders regarding budget constraints and expectations.
  • Regularly update stakeholders on financial aspects, ensuring alignment with project goals.

Detailed cost estimations:

  • Break down project costs into granular details, including development, testing, infrastructure, and other related expenses.
  • A detailed cost breakdown facilitates better tracking and management.
  • Estimate the indirect costs of developing the software, such as overheads, administration, and quality assurance.
  • Estimating the operational costs of maintaining and supporting the software after deployment.
  • Estimate the business value of the software, such as revenue generation, cost savings, and competitive advantage.
  • Identifying and implementing ways to reduce or optimize the cost of the software project

Utilize project management software:

  • Leverage project management tools to track expenses, allocate resources, and monitor project progress.
  • This type of software includes features for budget tracking, providing real-time insights.
  • Leverage budgeting tools and software for accurate tracking and reporting.
  • Automate multiple aspects of budget management, from forecasting to variance analysis, enhancing transparency and efficiency.

Implement agile budgeting:

  • Adopt agile budgeting practices to accommodate changes and adapt to evolving project requirements.

Regularly update budget forecasts:

  • Regularly update forecasts to reflect changes in project scope, timelines, or any other variables.
  • Align it with the evolving project landscape.

Use historical data for benchmarking:

  • Refer to historical data from previous projects to benchmark costs.
  • Analyze past projects for valuable insights into potential cost patterns and areas for optimization.
  • Use data from past projects to inform your cost estimations.
  • Historical data can provide insights into actual costs versus budgeted costs, common financial pitfalls, and effective cost-saving measures.

Implement cost monitoring and reporting:

  • Integrate robust cost monitoring and reporting mechanisms.
  • Review financial reports regularly to identify variances and address potential issues proactively.

Realistic contingency planning:

  • Incorporate realistic contingency plans into your budget.
  • Anticipate potential risks and allocate contingency funds accordingly.
  • Regularly review and update contingency plans.

Transparent communication on changes:

  • Communicate changes in project scope or requirements transparently.
  • Ensure that all stakeholders are informed about the impact of changes on the budget and timeline.
  • Foster open communication and collaboration among the project team and stakeholders.
  • Transparent sharing of financial information and regular discussions can prevent misunderstandings and ensure alignment on financial matters.

Document assumptions and constraints:

  • Clearly document assumptions and constraints that may affect the budget.
  • Ensures that everyone has a shared understanding of the financial landscape.

Regular financial reviews:

  • Conduct regular financial reviews with the project team and stakeholders.
  • Discuss budget status, upcoming expenditures, and potential risks collaboratively.

Continuous Improvement:

  • Foster a culture of continuous improvement in budget management.
  • Regularly assess the effectiveness of budgeting practices and implement enhancements based on lessons

Independent cost analysis:

  • External perspectives from independent experts provide valuable insights and validate the accuracy of estimations.
  • Conduct a cost-benefit analysis to determine the return on investment (ROI).
  • Analysis helps prioritize spending on areas that offer the highest value to the project.

Detailed cost breakdown:

  • Break down the project costs into detailed categories, such as software licenses, support, and contingency funds.
  • This granularity improves transparency and makes it easier to adjust specific areas.
  • Prevents changes from impacting the overall budget.

Market benchmarking:

  • Compare your project budget and cost structure with similar projects in the industry.
  • Benchmarking against industry standards helps identify areas where your project may need to be over or under-budgeting.

Risk-Adjusted cost forecasting:

  • Incorporate risk factors into your cost forecasts. Identify potential financial risks and their likelihood.
  • Adjust the budget to account for risks, ensuring the budget is realistic and resilient.

Training and education:

  • Educate your team on the importance of transparent budgeting and comprehensive cost analysis.
  • Training sessions, workshops, and access to financial management resources can enhance their skills in this area.

Continuous improvement:

  • Adopt a continuous improvement mindset toward budgeting and cost analysis.
  • After each project, review what worked well and what didn’t.
  • Learn from past projects to refine your approach for future projects.

Technology integration:

  • Integrate financial management tools with other project management software to streamline workflows and improve data accuracy.
  • Ensure real-time financial data, facilitating more timely and informed decisions.

Hire Remote Developers

  • Transparency in budgeting and a comprehensive cost analysis are pivotal. In most cases, you are better off trusting the professionals to develop a cutting-edge solution. They have the expertise to help guide the project to completion. This includes research, high quality, and sticking to the budget at hand.
  • Acquaint Softtech is a software development company with highly skilled software developers. We have the expertise to deliver next-generation solutions using advanced technologies. At the same time, I have extensive experience with maintaining a transparent budget and conducting comprehensive cost analysis.
  • Build the trust of the stakeholders by maintaining transparency. Our strategy includes everyone, including clients, team members, and investors. We achieve this with accurate resource allocation and an excellent risk management strategy.
  • This prevents the wastage of resources and the ability to detect financial risks early. Businesses can make informed decisions with a comprehensive overview of their finances.

Conclusion

You can achieve transparency in budgeting by incorporating these best practices. Accurate cost analysis helps set the stage for successful project delivery. Transparent financial management enhances trust among stakeholders and contributes to the overall success of the project.

Transparent budgeting and comprehensive cost analysis are essential elements of successful software development projects. The key to building stakeholder trust, maintaining budget transparency, and preventing cost overruns is to adopt the best practices.

IT Staff Augmentation: Tackling Resource Scarcity

Introduction

The IT staff augmentation market is rapidly expanding due to trends like AI, automation, remote work, and the demand for soft skills.

The global IT staff augmentation services market is expected to grow at a 3.53% CAGR from 2021 to 2025, reaching a substantial incremental expenditure of $81.87 billion.

The above statistics are proof that IT staff augmentation is considered the most beneficial approach to meet the skill gaps found during any software development process.

But like every other thing or concept Staff augmentation has two sides of the same coin i.e. there are certain challenges when you hire remote developers team to fulfill certain specific tasks that require certain specialized technical skills.

Let’s understand all the drawbacks in length and figure out how to overcome them to hire skilled professionals for software development

7 Challenges of Staff Augmentation & best Practices to tackle them

Finding the right team members:

The shortage of IT talent in countries like the United States, the United Kingdom, and almost all over the world. There are huge skills gaps found in the existing team/ the in-house team of any organization.

The lack of specific skills has resulted in the increased demand for hiring a staff-augmented team.

That’s why many companies are utilizing IT staff augmentation services, hiring dedicated offshore software developers from key IT outsourcing destinations such as Eastern Europe, Asia, and Latin America.

The solution: Partnering with a reliable Staff augmentation vendor.

The best solution to tackle the skill gap is to hire a reliable IT staff augmentation company. A vendor who is equipped with all the right tools and personnel presents the most effective solution to mitigate the risk.

To find the right IT Staff augmentation company for meeting software development needs, you should consider all the below things.

  • Culture compatibility
  • Time zone availability
  • Size of the talent resources

Follow the below steps to identify the right staff augmentation company

  • Selecting the most suitable location
  • Compiling a list of all vendors
  • Conducting an introduction round

Communication & Management:

Businesses often encounter communication challenges with remote teams using IT resource augmentation services, which can impede project development and lead to failure.

The solution: Build effective collaboration

Effective communication is the secret to a successful staffing partnership. No matter how big your staffing partner is, you should analyze some factors before setting up the collaboration.

  • Ensuring you have got right remote employees for the project delivery.
  • Choosing good collaboration tools is crucial.
  • Check reviews of the delivered services

Scalability:

Businesses face challenges with IT staff augmentation services when scaling development teams, as setting up large teams with lengthy recruitment processes can extend time-to-market. It’s crucial to clarify the time required for a company to expand its team with an IT expert.

The solution: Choosing an IT Staff Augmentation partner with a wider network of IT talent.

Before partnering with a vendor, consider the key factors:

  • Assess the company’s average attrition rate (aim for 10-15%).
  • Examine the vendor’s internal pool of IT talents.

Time Zone Availability:

When you onboard an augmented team from a different time zone, coordinating the work schedule can be a hinderance.

Challenges include:

  • Limited real-time communication
  • Collaboration during unconventional hours.
  • Insufficient team bonding.

The Solution: Using time management tools and hiring staff augmentation services. By using proper time management tools you can ensure that your team is on the same page.

But, hiring a managed IT staff augmentation provider will ensure you are successfully addressing all the challenges to ensure productivity and timely delivery of the project.

The Legal Issues:

The quality of the project decides the success or failure of the business, a quality deliverability will give you growth but a poorly executed project will bring unfavorable consequences.

The Solution: Choose a Win-win contract

While hiring external software developers the contracts for software development are based on three outsourcing models, which are as follows

  • Long-term project
  • A short-term material and time project
  • A fixed-price project

Make sure the project requirements and contract align with each other, also few other elements should be there in every contract to prevent any legal complications

  • Enforce penalties for contract non-compliance
  • Define liability limits
  • Include warranty provisions for service quality

Hiring a global IT staff augmentation agency helps resolve legal issues and ensures a seamless contractual process.

The security risks:

This is one of the biggest challenges while using IT staff augmentation, as this method includes hiring external professionals /remote employees.

A few of these security concerns can be overcome by taking proper measures that every team needs to take while hiring new team members using the IT team augmentation process.

The solution: Find a striking balance between both efficiency and security

Cooperation with IT staff augmented teams should be conducted under proper NDA guidelines to reduce the risks of data breaches and fraudulent activities.

Ensure you are hiring a trusted team of remote developers.

Transfer project knowledge:

Effective knowledge transfer is crucial throughout the project development process. Poorly structured plans can lead to inconsistent knowledge transfer, wasting time, resources, and investments for businesses.

The solution: Promoting efficient knowledge sharing

To overcome knowledge transfer challenges, consider partnering with an IT staffing firm with expertise in global knowledge transfer practices.

In order to run a successful knowledge transfer, you need to implement and follow the below fundamental steps

  • Identify knowledge items for transfer.
  • Assign accountable individuals.
  • Verify technical documentation.

Now let’s understand a few types of Staff Augmentation models an organization can choose to integrate with an existing in-house team.

8 Main Types of IT Staff Augmentation Services

  1. Project-based staff augmentation model: As the itself suggests in this type of augmented staff model the organization hires external resources to work on a specific project for a set period.
  2. Skill-based augmentation model: When an organization hires a temporary team of developers with specialized skills to achieve a successful project deliverable then it is known as a skill-based augmentation model.
  3. Time-based IT staff augmentation: When you hire third-party developers to work on a specific project for a specific time duration.
  4. Hybrid staff augmentation:- When an organization combines any two or more of the above models it is known as a hybrid model.
  5. Onshore IT team augmentation: When any company hires IT professionals from the same country with the same time zone and cultural background then it is known as an onshore augmented team.
  6. Nearshore staff augmentation: When remote employees are hired from a nearby country who follow the same time zone then it is termed as nearshore staff augmentation.
  7. Offshore staff augmentation: Working with IT professionals in different countries, often with a significant time difference, is known as offshore development. Hiring offshore software developers is a cost-efficient augmentation strategy.
  8. A dedicated team augmentation: Hiring a dedicated development team exclusively for specialized expertise to work on a project exclusively.

Why hire Acquaint Softtech for IT Staff Augmentation?

Acquaint Softtech is a Customized Software development company that helps organizations with IT Staff Augmentation Services and custom software development. We hold ten years of industry experience; our agile team is responsive and dedicated to helping our clients achieve their vision by assisting them in achieving successful project deliverables.

How SuperFi benefitted by hiring Acquaint Softtech

What was the project SuperFi?

Our client, SuperFi Finance, entrusted Acquaint Softtech with their innovative idea to address credit card debt issues. Having successfully collaborated on a previous project, SuperFi outsourced the website and mobile app development to us.

With the average UK household carrying over £2000 in credit card debt, SuperFi aimed to assist users in managing their debt effectively. Our expert development team built an online platform offering features like debt management tools, reward systems for timely payments, credit score improvement guidance, and an administrator panel for FinTech solution management. Beyond providing a remote team, we played a vital role in developing SuperFi’s business plan.

How did SuperFi benefit by hiring us?

SuperFi Finance chooses to outsource its software development needs, relying on us instead of hiring an in-house team.

The primary benefit they got was cost reduction, by avoiding investments in infrastructure, recruitment, and resources.

Outsourcing to a reputed firm like us simplified talent acquisition and provided greater flexibility which allowed SuperFi to scale operations easily, particularly for developing MVPs. This approach enhanced productivity, by tapping into a broader talent pool to promote work-life balance and foster innovation through diverse cultural perspectives.

Read more about how we helped SuperFi in executing successful IT Staff Augmentation from the below blog

How Did SuperFi Save $60K On Annual Hiring Costs?

Conclusion

Apart from securing talent, a crucial factor is adopting a budget-aligned hiring strategy to enhance project delivery. IT companies face challenges like expert shortages, security threats, time zone issues, and scalability. Partnering with a staff augmentation company can help in overcoming these hurdles, elevating internal processes, speeding up project completion, and maintaining flexibility without excessive costs.