Staff augmentation relates to an outsourcing technique used to establish and achieve organizational targets. It includes the assessment of current employees and the determination of the requirement of new expertise.
Economic benefits, better organizational productivity, improved customer service and access to emerging technology, and versatility are essential to outsourcing businesses. All these factors have given rise to the popularity of Staff augmentation.
Can you save your revenue using Staff Augmentation?
Yes. Your company can save 70% of its revenue, or even more in some cases, by using staff augmentation services. Please read our full article to know how you can do this magic.
Why do Companies use Staff Augmentation?
Companies who want to adopt a workforce expansion strategy to create and execute IT strategies are usually informed that this technique would help them enter into contracts with IT consultancy companies employing highly qualified workers. They also understand the cost-saving of recruiting an employee hired by the company in terms of additional staff.
Image Source: Innovecs
Companies can pick employees directly and use the approaches they choose for their staff augmentation model. Practically the vendor manages all the logistical and operational issues while the company copes with the key projects and operates with their expanded teams.
Did you Know?
- An estimated 300 000 jobs are outsourced every year in the US.
- In 2020-2021, approximately 55% of small firms intended to outsource their business processes.
- According to the Research and Market Study, US Staffing Industry would hit more than $150 billion in 2024.
How to Save Your Revenue Using Staff Augmentation?
Staff Augmentation works as a wonder for your business and cuts off your extra costs. Here’s how it helps your company save its revenue:
- No additional costs on recruiting and training
Recruitment is a costly procedure; If you are recruiting a resource, the internal recruiters must identify candidates, test them and proceed through complicated interview procedures. Working in new markets involves either additional labor or costly alliances with organizations that hire enterprises.
Employee raises lead to considerable cost savings. Thanks to increased staffing, firms have access to the global IT services they require while reducing unwanted expenditure.
The workload and costs often rise in hiring and training, and educating personnel. You may increase your employees in every sector by contributing to your team’s ability while maintaining costs. Abolish the team’s additional work while minimizing expenses.
- Easy Scaling
You can scale your workforce cost-effectively via staff augmentation. By reducing expenses and attracting the best staff for projects, businesses may grow faster than recruiting additional full-time workers.
The workload of a company in most sectors is continuously evolving. Temporary hiring is the ideal option for project-by-project control with existing and forthcome criteria. That implies making more without losing your project’s efficiency.
- Additional Costs
Companies require strategies to support them during an emergency. The COVID 19 pandemic compelled workers to start working from home. You can minimize expenses in situations like these if you have an augmented team.
Recruiting the wrong employee can cost you thousands, and this is a rising problem. You can recruit the best candidate with a remote approach. Fortunately, once you recruit a person who knows his job and is backed with good reviews and performance, the odds are far better to have the correct staff.
You can also save thousands on rent as you won’t have to pay for a gigantic building since your team will be working remotely. Moreover, you can save additional bills like electricity, furniture, equipment maintenance, security, etc.
- Retain Control
Even though staff augmentation is a type of outsourcing, it enables businesses to maintain leverage over their teams. The biggest gain is that companies can track the progress of their temporary workers. It often reduces other inconveniences of fully assigning tasks to external units. It helps businesses to preserve the secrecy of their ventures and evaluate their projects.
A new team will highlight suggestions for changing projects or procedures. This target and external presence will improve workplace productivity and ideas. Moreover, each workplace is special and has a unique environment. For team members who are impermanent operating on a project-by-project basis, they are unlikely to get involved in office politics.
- Dedicated Employees
People who work remotely engage in their work quite attentively. They usually don’t take many leaves unless there is an emergency. They would potentially invest more time working as they save on travel time and have the luxury of working in an environment that they find comfortable.
The low turnover rate often provides a powerful retention tool for businesses. Your tasks are finished more efficiently, meaning that you can pursue additional projects and spend them with the same team. This is a cost-effective step in the longer term.
Businesses are turning over staff augmentation to save a considerable percentage of their annual costs. In addition to the points discussed in this article, several other staff augmentation factors help a business grow exponentially and save up to 70% of the revenue.