Staff augmentation is a business strategy where a company hires additional talent to reinforce their existing team temporarily. This way agencies can increase their workforce quickly without going through the traditional time and costs consuming hiring process.
The hired staff will work under the supervision of the outsourcing company, which is responsible for their own employment taxes, benefits, and other expenses.
Staff augmentation can be a flexible and cost-effective way for companies to handle temporary workloads, specialized projects, or skill gaps in their existing team.
An example of this.
Let's say that your company has a big project coming up, which can be a website redesign or a new software development project. Whatever it is, your company realizes that they don't have enough people on staff to get it done on time. That's where staff augmentation comes in.
Instead of going through the long and expensive process of hiring new employees, your company can bring in temporary workers to help out. They'll work alongside your current employees, taking on some of the workload and helping to get the project done on time.
Benefits of Staff Augmentation
- Time saved
For one thing, it's a lot faster than hiring new employees. When you need to hire someone permanently, you have to go through a lengthy process of posting job openings, reviewing resumes, and conducting interviews. With staff augmentation, you can bring in workers quickly and get started on the project right away.
- Reduced costs
Another benefit is that staff augmentation can be a lot more cost-effective than hiring new employees. When you hire someone permanently, you have to pay for their salary, benefits, and other expenses. With this model, the staffing agency is responsible for employment taxes, benefits, and other expenses.
- Increased Flexibility
Companies can scale their workforce up or down quickly according to their needs. For example, if you need to work on a new software development project, you can hire developers with specialized skills in that area for the duration of the project, and once the project is completed, you can release those developers and hire a new team for your next project, all without incurring the long-term costs of hiring permanent employees.
- Access to specialized skills
Staff augmentation allows companies to access a broader range of skills and expertise than their existing team possesses. This can be particularly valuable for projects that require specialized skills or knowledge that are not available in-house.
One way to further maximize these benefits is through Nearshore, which means working with experts from a nearby country where the hourly rates are lower than what you'd pay for in-house staff, but without compromising on quality.
If you need some extra help with your IT projects, our team of experts from LATAM is ready to lend a hand. Contact us and let's talk about how we can work together.