Logan Zablocki is a young entrepreneur who is meeting his childhood friend Peter Fabian after ten years. Peter is a business tycoon who manages his father’s IT company, and both are so happy to meet and revisit childhood memories.
The waiter brings in the third round of coffee, and yet their talks are nowhere close to the end.
Peter asks Logan about plans, to which Logan is hesitant.
Logan’s company has just achieved the young aspirant in the IT industry, and now as per his current situation, all he can see are dark clouds. As Peter intrudes further to know about his friend’s problems, Logan shares his worries as an essential project is wailing at his doorstep.
- Logan’s dedicated software developers are already working overtime to complete their existing goals on time, whereas new projects lined up for them.
- His chief product developer is on paternity leave making the situation even more challenging to handle.
- Another manager of the team is undergoing surgery and hence is on a prolonged leave.
- The ongoing project has laundry list of things to take care. Logan needs to find pro developer who is capable of handling this flaw meticulously.
- The awaiting project that Logan is looking up to demands a specialized development talent. So either he needs to train his remaining developers with advanced skills-set or needs to hire new employees.
Logan is cautious because he is new, and his company is growing. He does not want to take any abrupt decision that will jeopardize his company’s pride.
Peter, being an experienced professional, advises his friend to go for IT Staff Augmentation Services.
Logan has various misconceptions about IT Staff Augmentation, and hence he is hesitant to go that way. Besides, Peter uncovers the negative perspective about IT Staff Augmentation that Logan has believed over the years.
7 IT Staff Augmentation Myths to Unravel
Logan tells Peter about the misconceptions assembled against IT Staff Augmentation, to which Peter clarifies and makes him understand the actual scenario.
Myth 1: Staff Augmentation is Very Expensive
As per Logan’s knowledge, his company is still in its initial stages of growth. He thinks that he doesn’t have the budget to hire a dedicated offshore development team because it is costly. This is why Logan is struggling with IT Staff Augmentation, to which Peter tells him the reality.
Myth Buster: IT Staff Augmentation is Cost-efficient
Peter tells Logan that he is under a big misconception. Staff Augmentation is not at all expensive; instead, it is the very opposite of it.
You might be comparing your in-house resource’s overall expenses to a dedicated developer, which is our IT Staff Augmentation resource. Here, you are missing some essential details.
There are lots of direct and indirect expenses are associated with your in-house resources that include health insurance, workers’ compensation, personal development, legal requirements, infrastructure cost, and other ongoing maintenance costs.
When you hire an in-house team, you are required to bear various types of insurance expenses for your employees, such as Health Insurance, Life Insurance, etc. that can cost you several hundred dollars! When discussing insurance benefits for your in-house team, it’s crucial to emphasize the significance of understanding OIG exclusion searches to ensure compliance with healthcare regulations and mitigate potential legal and financial repercussions.
With the in-house team, you also need to make provisions for employees’ retirement benefits such as provident funds, pension plans, etc.
You need to pay a fixed salary to your employees every month, along with other significant benefits.
As an employer of the in-house team, you will have to invest the money as well as time on the training and development of your own resources.
You will also be responsible for the legal requirements of the state-related with employees such as Tax payment with your in-house team.
Other business costs:
Other cost includes the cost of infrastructure, marketing, and ongoing expenses.
When you choose IT staff augmentation services, you will save all these benefits given to the employees.
Hence, Total Cost of an In-house Resource = Salary + Direct/Indirect Cost + Utilization
Moreover, your in-house staff is eligible to take sick leaves and other reasonable leaves and holidays. Whereas, a dedicated offshore developer will be full-time available for you with no additional costs or leaves. A Staff Augmentation resource does not have to spend time in training or attending office meetings; they are dedicated to your project work.
Logan has a view of enlightenment with this learning and is thankful to Peter to clarify his vision. The hourly rate of a dedicated developer is sure not more than the total cost of your employee.
Myth 2: No control Over the Project
Logan fears that if he hires a dedicated development team for his upcoming project, he will lose control over that project, and things won’t go according to him. The outsourcing company will take over all the authority of his project, which makes him powerless in any decision making.
Myth Buster: Staff Augmentation keeps you in Power
From his experience, Peter shares that it is contrary to what Logan believes. When you hire an offshore development team for your project, you are the boss. You can be in constant contact with the project manager of your IT Staff Augmentation company.
At any point in time, you can contact the developers and the manager of your dedicated team and maintain complete control over your project’s course and development.
Myth 3: IT Staff Augmentation Incurs Problems in communication
Logan is getting pretty confident about the Staff Augmentation concept, but he raises a concern regarding communication. Mainly if the dedicated offshore team is located in a geographically opposite location, there will be a constraint of matching time-zones while communicating.
Myth Buster: Communication is easy with Modern Telecommunication Tools
Peter tells Logan about the benefits of modern communication tools and project management tools. All the important updates, decisions, and success of your project go directly through you.
Though you have remote augmentation, the project manager is always connected to you. The most effective tools of communication with an offshore team are video conferencing apps, instant messaging, and project management tools.
Myth 4: Staff Augmentation is Risky
With each untangled barrier, Logan is getting calmer but yet not very sure about IT Staff Augmentation. He still feels that he will be taking a huge risk if he hires a dedicated developer or team.
Myth Buster: Staff Augmentation is Reliable
Peter explains to Logan that it is ok to have anxiety before you tie hands with a staff augmentation company. It is riskier to hire new employees for your upcoming valuable project. Instead, with Staff Augmentation, you are in safe hands.
At Bacancy Technology, they take your concerns seriously and take concrete steps to mitigate them. They have a stringent screening process and only shortlist the most talented candidates, which are forwarded to you for further evaluation. Once you hire employees from the shortlisted candidates, they become your permanent employees. Then you don’t have to worry about them leaving mid-project.
Also, you have complete control over the project and constant communication with your hired resources throughout to ensure you get the results you expect. To further ensure that the services we provide are up to your expectations, they offer free dedicated Project Managers and Quality Assurance Engineers for all new projects for the first few months.
Myth 5: Project Suffers Because of Time and Culture Differences
Accepting everything else, Logan feels hiring offshore developers to build software would be a great misfit as both the companies will have noticeable time and cultural differences.
Myth Buster: Project Grows in a Multi-Faceted Manner with Work Ongoing 24*7
Peter tells Logan that hiring an offshore development company gives the entrepreneur a double-boost of work-power because of the time difference between them. While your employees are asleep, your hired staff is working at a different location remotely for you. In this manner, your project development takes place round the clock.
Regarding the cultural differences, you can always talk to the candidates before hiring them. Make them clear about your company’s culture and see if they are comfortable with it or not. You must work out the deal of work timing before making the deal, by which their staff works according to your convenient time-zone.
Myth 6: You get reduced Quality and Efficiency
Logan tells Peter the belief that going for IT Staff Augmentation services will result in productivity loss. Also, the quality of remote work executed by offshore developers will not be efficient. He fears that as there will be no face-to-face communication, his project will not turn up as he expects it to be.
Myth Buster: Remote Work Increases Efficiency
According to a result, employees working remotely for your project find themselves more dedicated and responsible for your work, which, in turn, increases productivity. Most of the Offshore Development Companies manage to work in different shifts to match your time-zone and work-zone.
Dedicated teams use Agile Project Management methodologies that enable transparency in work, giving improved results. As the hired staff is in their comfortable environment, they work better, and hence you get better results.
Myth 7: IT Staff Augmentation is Suitable for Large-scale Enterprises Only
Peter has been successful in changing Logan’s mind regarding IT Staff Augmentation by now, but Logan is only worried about his company’s brand, reputation, and status. He thinks that big companies have the budget to undertake a deal with an offshore development company. Whereas he is just a start-up level entrepreneur, he can not afford Staff Augmentation.
Myth Buster: Staff Augmentation benefits all kind of companies
Peter brings up the point that rather a small company will benefit more by hiring dedicated staff offshore. It has smaller decisions to make, and they get faster results from outsourcing.
Additionally, you get expected results at reduced costs within the manageable time for your projects, owing to staff augmentation. This point makes evident that IT staff augmentation is fruitful for small and big, all kinds of projects and companies.
Peter is successful in making Logan understand the truth of staff augmentation: myths and reality. And now, Logan wants to learn more about hiring dedicated offshore developers.
How to Strike the Perfect Deal for IT Staff Augmentation Services?
Logan wants to learn how he can make sure that he is taking the right steps towards making a deal of staff augmentation. Peter tells him that a good partnership with an offshore company is made by aligning your in-house staff and the hired augmented team.
There are three steps to undertake for taking things to the next level ahead.
Step 1: Technical Screening
Primarily, you should explain your project’s technical requirements and expectations to the candidate partner company. By doing so, you verify the tech-scope of your project, and it helps the partner company to provide you eligible developers who can accomplish your project.
Step 2: Pair Programming
In the next step, your selected developers undertake a small task of your project and implement their technical skills. Here, you get to see how capable the outsourced team is to accomplish your project task. You get a bit confident about your selection of remote developers.
Step 3: Test-Sprint Development
Finally, all your selected developers work together as one team, and they collaborate with your in-house team. You observe how speedily they are accustomed to your company’s methodologies and working patterns. The streamlining of this process occurs by right alignment, experience, and field-tested methods.
Logan is getting pretty confident about going this way of hiring dedicated employees who implement Agile software development practices to undertake assigned project work.
How to Find your Ideal Partner for IT Staff Augmentation?
A little skepticism takes you a long way. Logan asks Peter how he can find the right staff augmentation partner company. Peter says that there are some qualities that you must look for before hiring an outsourcing partner.
Peter suggests to his friend that there are many outsourcing companies in the market today. He should trust a company by checking its reviews on Google and rankings on Clutch and GoodFirms before hiring their developers.
Before you tie hands with a partner development company, check out their past work and see what reviews and testimonials they’ve got on the B2B review site. Check if the company fulfills all your technical and non-technical requirements.
It is imperative to go through the kind of work the company has done in the past. Read their case studies and learn what they will deliver to your partnership. If they have previously undertaken similar projects like yours, it will be an advantage for you.
The outsourcing company should enhance your hiring strategy. They should have access to all recruitment channels and better operations to get you the deserving developers to accomplish your projects.
Choose a company that establishes a confidential and secure work environment by signing a non-disclosure agreement (NDA). With such a reliable outsourcing company, you can develop a robust software development team without jeopardizing your invaluable data and IP details.
IT Staff Augmentation Best Practices
Peter gives Logan some bonus tips on making the most out of an IT staff augmentation partnership. Peter describes them as the Best practices for IT staff augmentation:
- Define individual roles for both in-house and offshore developers.
- Prefix the access workflows and make sure that everyone follows the development procedures.
- Each one of them must know about scheduled meetings, people involved, and feedback.
- Be flexible and follow Agile methodologies to get desired results. Rigid measures have not turned helpful to any workforce management.
- Always keep taking feedback from your team members, which will automatically result in finding the best solution for working remotely.
- Use project management tools like Jira and Trello, to maintain complex dependencies amongst tasks and team members.
- To be successful, you have to be coaching, nurturing, and mentoring your team members. Keep your talent vendor involved.
Friends have solutions to all our problems, and actually, only true friends can tell you the secrets to success. Logan is grateful to Peter for enlightening him on the concept of IT Staff Augmentation: myths and facts. Logan is sure to opt for an IT staff augmentation partnership with a success-resulting company like Bacancy Technology that uses Agile software development methodologies to achieve expected results.
Upscale your enterprise with Bacancy Technology’s best IT Staff Augmentation Services. We are here to empower you because we provide better solutions for your staffing requirements. Save up to 40% of your development costs and leverage our top-of-the-line IT skills. Our proficient developers are embellished with full-stack technology stacks. Start your risk-free trial without payment for two weeks and then sign our NDA contract.
IT Staff Augmentation Services: FAQs
How does a software outsourcing company work?
Bacancy Technology is a top-notch IT outsourcing company. We intend outstanding IT Staff Augmentation services to businesses of all shapes and sizes. Whether you need our developers for your project or for your client’s project or to manage an offshore development team for IT technical support & maintenance services, Bacancy Technology’s team augmentation service is the new offshore software development model.
What are the benefits of IT Staff Augmentation?
Some of the vital advantages of staff augmentation are: No management overhead, diverse portfolio, saving time and resources, and shared responsibility.
Why is IT software development outsourcing a need in today’s world?
There is a huge gap in the technical skill-set of your project requirements and your developer’s resume. To minimize this gap, along with saving your project costs, IT Staff Augmentation of IT software development outsourcing has become a must in today’s IT industry. Whether it is a small company or a big organization, outsourcing is essential for all types of projects.