Staff augmentation has emerged as the one of the most important sourcing strategy being adopted mostly by IT companies to offset their shrinking internal employee base. The staff augmentation as a staffing model helps the company to ramp up and down their employee requirements immediately. The primary benefit of staff augmentation is that it allows the companies to focus on the growth and development of their businesses by supplementing it by giving access to skilled and experienced work force when the organization needs them the most. Staff augmentation also eliminates the necessity of incurring overhead costs in the form new employee recruitment and other allied manpower costs.
- Majority of organizations choose to augment their staff due to the following four primary reasons and these include:
- Specific skill requirements,
- Difficulty in recruiting talent due to location factors,
- The emergence of short-term projects to be completed on time,
- The stringent budget of the organization limiting the recruitment process or in increasing the employee head count is enabling organizations to choose staff augmentation.
According to the Staffing Industry Analysts Report, the IT staffing companies have experienced stronger than anticipated demand for their services during September.2013 due to shift in their clients perception and utilization of staff augmentation as a more strategic method for getting the projects done. There are secular shifts being taking place in the employment market with corporations considering staff augmentation as the preferred work force arrangement.
The Chief Information Officers or CIO’s of these corporations (mostly IT companies) are looking at staff augmentation as a more attractive deployment model than potentially off shoring or project consulting outsourcing because of the cost flexibility, accountability and versatility. There is no change in the mindset of the CIOs’ about the advantages of staff augmentation as they have strong intentions to spend a larger amount of their total IT services revenue on projects that are deployed or developed with staff augmentation versus other deployment models. There are numerous staffing service firms or agencies providing staff augmentation services to major IT clients by providing them qualified professionals and network of consultants for a wide range of purposes and need based projects.