What is staff augmentation and why would your business benefit from it? Studies have shown that companies can save around 30-40% on operational and hiring costs when opting for temporary or contract-based staff instead of permanent hires.
By engaging staff augmentation talent, organizations can boost their capabilities without making long-term commitments. Staff augmentation offers the flexibility to quickly scale teams up or down, ensuring companies can meet their goals while keeping costs in check. In this article, we’ll look at how to hire augmented staff and all of the ways that this method can save labor costs in your business.
What is Staff Augmentation?
Staff augmentation refers to a flexible hiring strategy that allows companies to fill skill gaps or expand their workforce by bringing in external talent, often on a temporary basis. It involves hiring professionals, typically through a staff augmentation or outsourcing company, to work alongside the company’s existing staff. The augmented staff member is fully integrated into the company’s operations but remains employed by the external service provider.
Staff augmentation allows companies to temporarily bring in skilled professionals to meet project demands without the costs of full-time hiring. It’s ideal for filling gaps in specialized areas like technology, marketing, or project management, ensuring teams have the right expertise. By integrating new staff into existing teams, businesses can boost collaboration and efficiency, streamlining project completion.
Engaging staff augmentation talent is becoming a common solution for many businesses in the US and globally. According to worldmetrics.org, the global staff augmentation market was valued at $92.5 billion in 2021 and is projected to reach $145.12 billion by 2027.
Staff Augmentation vs. Outsourcing
Staff augmentation involves hiring temporary professionals to fill specific skill gaps, allowing organizations to scale quickly while maintaining control over the team and processes. In contrast, outsourcing means contracting an external organization to handle entire functions or processes, such as customer service or IT support.
READ MORE: BPO Vs. Staff Augmentation: Which One Is Right For You?
Staff Augmentation vs. Consulting
Staff augmentation typically focuses on short- to medium-term needs, integrating augmented staff into existing teams for particular projects or peak periods. Consultants, however, may be engaged in longer-term initiatives, working more independently to analyze organizational needs and develop strategies.
When to Use Staff Augmentation?
Staff augmentation is ideal when you need expertise that your in-house team lacks, for temporary projects with defined timelines, or when scaling quickly to meet increased demand. It offers flexibility by providing a temporary workforce, helping to avoid the overhead costs of hiring full-time employees.
Can Staff Augmentation be Used For Long-term Projects?
Staff augmentation can be a valuable strategy for long-term projects, offering both flexibility and access to specialized talent. For instance, in industries like IT and engineering, specific expertise may be necessary at different stages, making staff augmentation an effective solution.
Benefits of Staff Augmentation
There are many benefits of staff augmentation, especially for a remote team. Here are some of the most notable:
- Flexibility and Scalability – You can scale your workforce up or down based on project demands. This ensures you can quickly adapt to changing needs without long-term commitments.
- Access to Specialized Talent – The right staff augmentation partner will bring in experts with niche skills that may not be available in-house. This access ensures projects are completed with the required expertise, without the need for full-time hires.
- Cost Efficiency – Hiring external staff for short-term or project-based needs reduces costs associated with full-time employment, such as benefits, training, and long-term salaries.
- Faster Hiring and Integration – Staff augmentation speeds up the hiring process, allowing you to quickly onboard professionals who are ready to contribute. This reduces delays and helps maintain project timelines.
- Reduced Hiring Risk – Augmenting staff temporarily minimizes the risk of a bad hire, as you can assess performance without a long-term commitment. If the fit isn’t right, adjustments can be made easily.
- More Control Over Projects – Unlike outsourcing, staff augmentation keeps project management in-house, allowing businesses to maintain full control over timelines, quality, and team collaboration.
- Quicker Project Execution – By bringing in any necessary skills that your team is missing, you can avoid project delays and enhance overall productivity.
How Does Staff Augmentation Work?
Staff augmentation is a flexible way for companies to quickly expand their workforce or bring in experience and skills without long-term commitments. It starts when a company identifies staffing needs, for short-term projects or skill gaps.
The business then partners with a staffing provider that supplies pre-vetted skilled professionals. These professionals integrate smoothly into the team, working alongside current staff and following the company’s processes and goals. The staffing provider handles payroll and HR responsibilities, while the company manages the work. Payment is based on a flexible contract, allowing the company to scale the arrangement as needed and end it when the project is complete.
Types of Staff Augmentation Models
Choosing the right staff augmentation model will depend on your existing resources, project needs, and where you need to bridge skill gaps in your team.
Commodity-based
Commodity-based augmentation involves hiring staff for non-specialized, repetitive tasks that don’t require specific expertise. These are usually lower-cost roles aimed at increasing capacity rather than adding specialized skills. Examples include tasks like data entry, basic customer support, or manual testing.
Temporary Staff Augmentation
Temporary staff augmentation allows businesses to quickly bring in external talent for short-term needs. This model is especially useful for addressing seasonal demand spikes, covering for employees on leave, or managing unexpected increases in workload. Once the temporary period is over or the workload returns to normal, the business can easily scale back, ensuring efficiency without the burden of permanent hires.
Onshore vs. Offshore Staff Augmentation
Onshore staff augmentation services means hiring talent from the same geographic region as the company. Offshore augmentation, on the other hand, taps into global talent pools where labor costs are typically lower.
Skill-based
Skill-based staff augmentation is used to bring in external resources with specific, in-demand skills that are lacking within the internal team. This might include hiring professionals like software developers, digital marketers, or graphic designers to tackle specific tasks and complex projects.
Project-based
In project-based staff augmentation, external staff is hired for the duration of a particular project. Once the project is completed, the augmented resources are no longer required. This model allows businesses to quickly scale their teams to meet specific project demands, especially for large-scale or one-off projects like product launches, system upgrades, or marketing campaigns.
Long-Term Staff Augmentation
Long-term staff augmentation involves hiring external talent for extended periods to supplement the core team. This model is often used when a company requires ongoing specialized skills but doesn’t want the expense of hiring full-time employees.
On-demand or Flexible
On-demand or flexible staff augmentation allows businesses to scale their workforce up or down as needed, based on fluctuating workloads. This model is highly adaptable and often leverages freelancers or part-time contract workers who can be hired for specific tasks and released when no longer needed.
Best Practices for Implementing Staff Augmentation
- Clearly define project needs: Identify specific skills, experience, and project goals before bringing in external staff. This will help you know what staff augmentation model you need and what particular skills can complement your internal team.
- Select the right staff augmentation company to partner with: Choose a reputable company with industry expertise and a solid talent pool. A staff augmentation firm can help you create job postings, outline project requirements, and find efficient talent.
- Ensure smooth onboarding: Provide a structured onboarding process that introduces augmented staff to your tools, workflows, and team. Ensure you have proper project management tools to effectively integrate augmented teams with other staff.
- Maintain communication and collaboration: Use collaboration tools and schedule regular check-ins to keep communication open between internal and external teams.
- Focus on performance management: Set clear KPIs and provide regular feedback to ensure augmented staff meets performance expectations. Project managers should monitor progress closely, encourage open communication between augmented staff and existing team members, and address any challenges promptly to maintain alignment with project goals.
Examples of Staff Augmentation in Different Industries
Staff augmentation helps businesses across various industries fill temporary or specialized workforce needs.
| Industry | Example | Augmentation & Tasks |
| Technology & IT | A software development company needs additional expertise for a large project but doesn’t have specialists in-house. | The company brings in software developers, data scientists, or cloud experts to complete the project on time. |
| Manufacturing & Supply Chain | A manufacturing company faces unexpected disruptions in its supply chain and requires analysts to optimize logistics. | Supply chain analysts and operations managers are brought in to analyze data and streamline processes. |
| Education & eLearning | An educational institution plans to launch a new set of online courses and needs a dedicated team to develop content. | Instructional designers and eLearning experts are hired to create course materials and interactive learning modules. |
| Legal Services | A law firm has an upcoming case that requires extensive legal research and document preparation, but its in-house team is at capacity. | Paralegals and legal researchers are hired to support the firm’s legal staff in preparing for the case. |
| Marketing & Content Creation | A marketing agency lands a major campaign and needs more content creators, graphic designers, and SEO specialists to meet deadlines. | Writers, designers, and digital marketing experts are added to the team for the duration of the campaign. |
| Customer Support | An e-commerce business anticipates a seasonal increase in customer inquiries and complaints during a major sale. | Temporary customer service representatives are brought in to handle the increased volume of customer interactions. |
| Finance & Accounting | A financial firm needs extra hands during tax season or for an audit but doesn’t want to hire full-time accountants. | The company hires experienced accountants or financial analysts to manage the workload during peak times. |
| Healthcare | A hospital or clinic experiences a surge in demand and requires more personnel for medical coding, billing, or patient care. | Certified medical coders, billing specialists, or nurses are hired to assist during high-demand periods or to cover temporary staffing gaps. |
Top Global Regions to Source Augmented Staff for US Companies
| Region | Advantages |
| Latin America | Time Zone Alignment: Similar or overlapping time zones with the U.S. and Canada make real-time communication and collaboration easier.
Strong Technical Expertise: Countries like Mexico, Brazil, and Argentina have developed a strong pool of IT professionals, particularly in software development, data analysis, and customer support. Cultural Affinity: Similar work culture and English proficiency, especially in Mexico and Colombia, help bridge communication gaps. |
| South Africa | Highly Educated Workforce: South Africa has a growing pool of university graduates in IT, customer service, and business services.
Strong English Proficiency: As English is one of the primary languages, communication is seamless for businesses in Europe, the U.S., and the U.K. Cost Savings: Labor costs are lower compared to Western markets while maintaining high-quality standards in fields like IT support and finance. |
| Philippines | BPO Expertise: The Philippines has a long history as a leader in the business process outsourcing (BPO) industry, with expertise in customer service, administrative support, and technical assistance.
High English Proficiency: English is widely spoken, making communication easy for businesses from English-speaking countries. Cost-Effective Talent: Companies can access highly skilled augmented teams at a fraction of the cost compared to Western markets. |
| India | Specialized IT Skills: India is known for its vast pool of skilled and experienced developers, IT support, data science, and AI-proficient workers.
Cost Savings: With significantly lower labor costs, businesses can save on operational expenses without compromising quality. 24/7 Support: Due to its time zone, India is ideal for companies seeking round-the-clock services, particularly in IT and customer support. |
Other Emerging Regions
While the above four regions are leading options, other emerging markets are also gaining popularity for staff augmentation:
- Eastern Europe: Countries like Poland, Ukraine, and Romania offer high-quality technical talent, particularly in software development, with strong English proficiency and cultural alignment with Europe and North America.
- Southeast Asia: Nations like Vietnam and Malaysia are becoming attractive due to their growing tech industries and cost-effective labor.
Final Thoughts on Staff Augmentation Services
By using external talent, companies can access specialized skills, minimize hiring risks, and maintain control over their projects without the long-term obligations of permanent hires. The best way to implement an augmented team in your company is to partner with professional staff augmentation companies, like 1840 & Company. With our proven track record, we help interview candidates and ensure seamless integration to address skill gaps and support your company’s team leaders during projects.
We offer specialized global staff augmentation services, delivering tailored solutions that align perfectly with your organization’s unique needs. Connect with our growth experts to discover how we can support your success.
