Companies across the world are boosting their performance by tapping into talent pools in other countries – but unlike the outsourcing of the ‘70s and ‘80s, they are doing this to expand their operations, but to replace one set of workers with another.
And the number one model – particularly when we’re referring to the tech industry – is staff augmentation.
Attracting global talent has been common practice within the IT industry for a while, with the logic being something like: the world has never been so connected, so don’t limit your business to workers in one country.
The global tech market is bustling and opens a lot of possibilities for any business, whether you’re a startup or an enterprise. And by augmenting from other countries, you’re likely to acquire highly qualified specialists at lower costs than those in your own country.
This drive towards staff augmentation has accelerated during the last year and a half due to the digitalization of… well, life, and particularly work.
This sparked higher demand for tech professional and software specialists. This growth has led to the projection of the outsourcing market to reach $531 billion by next year. The annual growth rate is on course to hit 7.7% this year.
A new model
Rather than seeking out third-party contractors, the staff augmentation model implies the building of a specialized team and then work as a part of the company.
The advantages of staff augmentation involve:
Wider choices of specialists
Your company is capable of widening the net of potential workers by looking internationally for your company-specific skill gaps.
And when you partner with a staff augmentation company, they will carry out the first selection of candidates that are based on the requirements of the company needs.
When you have dedicated members that are part of the team, they are more likely to share the values of the company because they are aligned on the goals and processes, and are immersed in the company culture for however long they stay.
Rather than working with outsiders, staff augmentation workers are essentially part of the team; they work exclusively on projects or tasks and are not distracted by other work for other clients.
When you have an outsourcing model, all of the costs may not be so clear from the beginning. Alternatively, with staff augmentation, the expenses are known in advance because they have been worked out in the beginning.
Companies are able to rely on the staff augmentation provider to handle everything from recruitment to HR and legal assistance, such as taxes, salary payments, etc.