Charmi Vadaliya
Written By Charmi Vadaliya Sr. BDE

IT Staff Augmentation vs. Hiring for Your Company’s Growth

post date
April 11, 2023
IT staff augmentation vs hiring
Reading Time: 7 minutes

When considering the development of a new product for your business, you are often faced with the decision between two viable options – in-house hiring and IT staff augmentation. Each option carries its own set of advantages and drawbacks.

The process of building a product from scratch or enhancing an existing one necessitates a proficient development team. However, when lacking one or more tech experts, deciding on the appropriate course of action becomes crucial. One approach is to task your recruitment department with seeking and hiring the required talent internally. Alternatively, you may opt for collaboration with a software development services vendor, employing the staff augmentation model to meet your needs. Notably, Statista reports that the global count of software developers is on the rise and is expected to reach 28.7 million specialists by 2024. Despite this substantial number, companies often encounter challenges in identifying the ideal candidates for their projects.

While our perspective, as a software development company, might naturally lean towards emphasizing the advantages of IT staff augmentation, we intend to present an unbiased and comprehensive overview of both options. This will enable you to make an informed decision that aligns with your specific requirements, ensuring access to the most talented and motivated experts for your project.

Instances Where In-House Recruitment is Necessary

Establishing an in-house software development team serves as a strategic, long-term investment aimed at enhancing your company’s skill set and expertise. Given the desire for a new hire to become a valuable asset, the process of selecting the right candidate is typically thorough and time-consuming. Recruiters often invest weeks or even months in the tasks of searching, interviewing, and ultimately selecting a suitable specialist to fill a vacant position.

Furthermore, the absence of specific specialists within a company can lead to operational weaknesses, resulting in prolonged completion times for tasks and projects. A shortage of staff not only extends timelines but also constrains the range of projects a company can undertake and the goals it can accomplish.

In-house recruitment becomes essential for a company when:

  • There is a need to enhance the company’s skill set over the long term.
  • The company has an existing team of recruiters.
  • Time can be allocated for a meticulous search process.
  • The company is capable of attracting candidates through competitive salaries and enticing corporate benefits.
Advantages of In-House Recruitment
  • Smooth Communication: Working together in an office makes communication easy and direct, fostering better collaboration compared to virtual messaging.
  • Building a Strong Team: Companies invest in creating a positive work culture to bring their employees closer. This boosts team morale, loyalty, and overall productivity.
  • Easy Team Management: Managing teams is simpler when everyone is in the same place. Shared time zones and language further facilitate efficient management.
  • Heightened Security Measures: In-house hiring often involves rigorous security checks, ensuring new hires have the right skills and won’t disrupt the work environment.
  • Skills Improvement Programs: Many companies offer training and incentives to enhance the skills of their employees, promoting continuous learning and growth.
Disadvantages of Hiring In-House
  • Takes a Lot of Time: Finding the right person for a job in your company can be a slow process, especially since there aren’t enough IT experts to go around in certain areas of software development.
  • Employees Might Leave Suddenly: Your team members might get offers from other companies, especially if they have special skills. Losing such skilled workers can be a big problem, and finding replacements is not easy.
  • Needs More Stuff: Employees need a good working environment – a nice office, good equipment, and places to relax. Your company has to provide all of that to keep your team happy and working well.
  • Same Pay Every Month: In-house employees usually get the same amount of money each month, no matter how much work there is. So, even if they don’t have much to do for a while, they still get paid, which might not be very efficient for the company.

Choosing the IT Staff Augmentation Model: When and Why?

If you find yourself in need of specific skills and expertise on a temporary basis, the staff augmentation model could be the ideal solution. This approach is both rapid and temporary, bypassing the traditional recruitment route by directly engaging with providers of tech skills. Essentially, it involves reaching out to companies that have a pool of specialized professionals and negotiating a contractual arrangement to “rent” one or more of them.

This model is particularly suitable for your company in the following scenarios:

  • Startup with Limited Budget: If your company is a startup operating on a tight budget and aiming for a breakthrough, staff augmentation provides a cost-effective and agile solution.
  • Urgent Need for Specialized Skills: In situations where you require a specialist promptly, staff augmentation’s swift and straightforward process can efficiently fulfill your immediate needs.
  • Limited Capacity for In-House Teams: If your office lacks the necessary space or infrastructure to accommodate a large in-house team, staff augmentation allows you to access external expertise without the need for additional physical resources.
  • Resource Constraints for Employee Management: For companies without the capacity to handle the administrative aspects of managing a large workforce, such as mandatory payments, benefits, taxes, and other perks, the staff augmentation model offers a practical alternative by outsourcing these responsibilities to the service provider.
Advantages of IT Staff Augmentation Model
  • Cost Efficiency: Opting for a staff augmentation model often translates to lower costs compared to hiring in-house workers. Payments are tied directly to the amount of work completed, ensuring you only pay for productive activities.
  • Simplified Hiring Process: Engaging with a company for staff augmentation streamlines the hiring process. You convey your requirements, and the company delivers results. This approach minimizes the workload on your HR and recruiting specialists, requiring minimal effort to secure the needed expertise.
  • Swift Talent Search: Staff augmentation service providers maintain a roster of specialists, enabling quick identification of suitable candidates. Instead of reaching out to individuals, you liaise with a manager who represents a group of available workers, expediting the search process.
  • Flexibility and Scalability: The staff augmentation model offers exceptional flexibility and scalability. In the event of unexpected project growth, quickly adding more specialists is easily achievable through this approach.
  • Remote Work Setup: Hired staff typically works remotely, eliminating the need for your company to provide office space, equipment, and facilities. This not only contributes to significant cost savings but is especially advantageous for small businesses and startups.
Disadvantages of the IT Staff Augmentation Model
  • Management Challenges: Managing remote workers can be more complex, particularly when dealing with different time zones. Despite the availability of software solutions for team coordination, additional efforts are often necessary from team managers to ensure a seamless workflow.
  • Communication Hurdles: Language proficiency and cultural differences can sometimes lead to communication challenges within the augmented team. While various software tools aim to promote coordination, bridging these gaps may require extra attention.
  • Lack of Team Spirit: Hired workers through the staff augmentation model may lack a sense of team spirit and corporate values. Being temporary, their primary focus is often on completing the assigned tasks rather than investing in the long-term success and culture of your company.

Shared Characteristics in In-House Recruitment and Staff Augmentation Models

Both in-house recruitment and staff augmentation models encompass several common features that can contribute to the success of your company:

  • Skillful Specialists Addition: Both hiring models allow you to augment your team with specialists possessing the requisite skills, ensuring that your team is well-equipped to handle various projects.
  • Project Completion Capability: Teams formed through either model demonstrate the capability to successfully complete projects, fulfilling the objectives and goals set by your company.
  • Quality Responsibility: In both models, hired workers bear the responsibility for the quality of their work. This accountability ensures a commitment to delivering high-quality outcomes.
  • Effective Collaboration: Specialists acquired through both models seamlessly collaborate with the existing team and other departments. This effective cooperation enhances overall project efficiency.
  • Activity Logging and Documentation: Whether in-house or through staff augmentation hired staff consistently log their activities and prepare documentation for the projects they are involved in. This practice ensures transparency and facilitates project management.

It’s essential to note that while these models share these common characteristics, the choice between them hinges on their inherent differences and how well they align with the specific needs of your company.

full time salary vs Hourly Rates

Finding In-House Developers: Where to Look?

Discovering a skilled software developer for your in-house team involves exploring various channels:

  • Specialized Online Platforms: Platforms like Upwork and Freelancer offer a diverse pool of freelancers and developers, making it easy to find suitable candidates.
  • Job Vacancy Websites: Check out popular job vacancy websites like Indeed and Glassdoor, attracting skilled developers actively seeking employment opportunities.
  • Online Service Provider Catalogs: Platforms such as Clutch and GoodFirms serve as catalogs of service providers, providing insights and ratings to aid in your selection.
  • Employee Referrals: Seek recommendations from your current employees, colleagues, or professional network. Trusted referrals can help identify qualified developers who align well with your team.

Regardless of your chosen method, approach the search responsibly. Invest time in thorough research to distinguish genuine specialists from potential frauds, ensuring that the selected developer not only possesses the required technical skills but also aligns with your team’s values and goals.

Why WebCodeGenie is the Right Staff Augmentation Company for You?

Established Excellence Since 2010

With a solid foundation laid in 2010, WebCodeGenie has been a consistent player in the software development landscape for over a decade. Our proven track record is marked by excellence, with a portfolio that includes successfully completing 300+ projects.

Multi-Industry Expertise

Over the years, we have cultivated expertise across various industries, ensuring that our solutions cater to the unique needs of sectors such as Real Estate, Healthcare, Construction, Transportation, e-commerce, Retail, Insurance, and more.

Cutting-Edge Technologies

We leverage advanced and reliable technologies to craft innovative web and mobile solutions. This commitment to staying at the forefront of technology ensures the efficiency and success of the projects we undertake.

Extensive Talent Pool

With a rich talent pool, our specialists cover a wide spectrum of domains, encompassing iOS and Android app development, custom web solutions, cloud solutions, software architecture, quality assurance and testing, UI/UX design, product engineering, and more.

Proven Excellence and Awards

Client feedback on platforms like Clutch, Business of Apps, and Goodfirms reflects the consistent quality of our services. Numerous awards received over the years further underline our commitment to excellence.

Rapid Time-to-Market Solutions

WebCodeGenie excels in delivering rapid solutions, adept at constructing minimum viable products (MVPs) and proof of concepts (PoCs). This expertise accelerates the time-to-market for your products, enabling swift feedback collection or securing essential investments for your business projects.

Conclusion

In conclusion, when contemplating the right approach for your project’s staffing needs, both hiring an in-house employee and engaging with a software development company through the staff augmentation model present viable options.

Opting for in-house specialists is ideal for long-term, complex, and highly confidential projects, where having a centralized team in one office is crucial for seamless communication and immediate availability during working hours. On the other hand, if your project demands a prompt and reliable professional, and waiting for weeks or months is not an option, IT staff augmentation from an outsourcing vendor emerges as the perfect solution. Even when collaborating with remote specialists across different time zones, contractual agreements can specify working hours to align with your project requirements.

WebCodeGenie, with its extensive talent pool and expertise, stands ready to empower your in-house or distributed project team. Whether you need front-end, back-end, mobile, QA, or other specialists, we can swiftly address your software development requirements. Simply reach out to us, outline your challenges and specifications, and let us resolve your shortage of software development specialists promptly.

Charmi Vadaliya
Written By Charmi Vadaliya Sr. BDE

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