Why Should Organizations Go for IT Staff Augmentation in 2020 and Beyond
The modern technological world is evolving at a rapid pace and a dynamic workforce with specialized skillsets is the need of the hour. Every day, new ways of leveraging already existing technology are discovered while new updates and technologies are being developed. Organizations not leveraging the rapidly changing technology stand the risk of getting left behind. This makes it imperative for organizations to keep up with the pace and hire specialists that can help them make the best use of this tech evolution.
However, the problems that organizations face when upgrading technology and capabilities are complex. Here are some of the issues faced by organizations:
- Finding highly skilled candidates: Organization struggle with finding skilled candidates that can fit their organizational culture, while keeping the time, cost, and recruitment budgets down.
- High cost of finding candidates: According to a survey conducted by the Society of Human Resource Management in 2016, the average cost incurred in placing a suitable candidate for a position is $4,129, with the average time to fill that position being 42 days. For organizations, this time and money spent is a crucial resource.
- Rising attrition rate: As of June 2019, the technology businesses faced the highest attrition rates. The churn rate for the tech industry was at 13.2%. Considering the rising attrition rates and the perks required to keep employees on the payroll satisfied, the costs pose a risk of spiraling out of control.
- Talent shortage: Compounding the above problems is the talent shortage in the tech space. This is more so in areas that have a high concentration of tech companies.
All these factors pose a big threat to organizations when it comes to tech recruitment.
Benefits Of IT Staff Augmentation Services
Companies providing IT staff augmentation services are well equipped to address the issues because:
- They specialize in this domain and have built the necessary expertise in specific IT verticals to source talent quickly and efficiently.
- They have well laid down and proven procedures and processes to analyze requirements, source, screen and select the right candidate quickly and within the given budget.
- These companies offer flexibility and can help you find appropriate resources for both short-term as well as long-term projects.
Because the recruitment process is outsourced and the consultants hired are employed and retained by the vendor organization, the costs associated with sourcing the right talent are reduced significantly. In some cases, outsourcing IT staff augmentation also helps avoid legal and procedural hassles.
Here are some of the specific ways IT Staff Augmentation can help organizations in 2020 and beyond.
Breaking Geographical Limits
Often companies are looking too narrowly when trying to identify tech talent. This approach limits the scope of the talent pool that they can be tap into. With the advent of readily available online education and training capabilities, people residing in remote locations may also possess the skills in demand. In such a scenario, it makes more sense to broaden the search parameters and look beyond the immediate vicinity. Companies offering IT staff augmentation services come in handy to help identify and hire such talent because they have access to a much larger database of talent available.
IT staff augmentation companies have a well-established network of consultants that they can leverage to cater to your specific needs. They also specialize in sourcing new talent from across the globe so that you select from the best candidates for your requirements.
Sometimes, hiring needs are for short term, such as, for a project with a set completion and deployment date. In such a case, it is not feasible for the company to recruit a full-time employee on its payroll. It is more cost-effective to hire an independent contractor on a project basis. IT Staff Augmentation companies can help find short term contractual workers which helps maintain a lean operation, working at optimum efficiency and without the hassle and cost of onboarding full-time employees.
Expansion in Uncertain Markets
Utilizing staff augmentation services can help organizations to focus on their expansion strategy without having to worry about staffing in an uncertain environment. This can help the companies to adapt to fluctuations and changes in the market conditions rapidly by using short term employees.
Monitoring and Control of Operations
Organizations stand the risk of losing operational control as well as face other data security and privacy related risks when they outsource entire projects to third party vendors. However, by using IT Staff Augmentation services, companies can retain control over the quality and pace of the work. The consultants provided by IT staff augmentation vendors report directly to internal POCs and managers. This ensures proper management of operation as per the client’s standard operating procedures while avoiding the cost and hassle of managing a large team of full-time employees.
Outsourcing talent acquisition is a widely accepted method for meeting talent requirements in a large number of tech as well as non-tech organizations. Staff augmentation companies leverage tried and tested methods to rapidly meet customers’ need. These companies have access to talent pools with a reach extending beyond the normal limits of an internal recruitment team. These companies provide unmatched flexibility and agility to organizations and help them to be at the forefront of a dynamic marketplace.