One of the key tools required by an IT organization in the 21st century dynamic business environment for improved agility is IT staff augmentation. In the wake of globalization and constant technological developments, IT companies have the privilege of hiring remote teams placed all around the world working seamlessly for various projects. It is indeed the new model adopted by most global businesses today that has come to realize the many benefits of switching to remote hiring as compared to in-house software development.
What Is IT Staff Augmentation?
Simply put, staff augmentation is a process of outsourcing with flexibility. It enables business organizations to hire technological talents from across the globe as well as have complete control of the augmented team. Through this strategy, IT professionals who exactly meet the specific requirements of the project can be selected, with the flexibility to augment or cut down the team as per project requirements. Generally speaking, IT staff augmentation is opted for in situations such as:
- If the IT staff augmentation companies, with already functional teams working on particular projects, wish to add professionals in order to extend the team to work on another specific part of the project.
- If the IT organization is working on a technological solution development for which adding new skillset to the existing team is a requirement.
- If there is a requirement for direct regular communication with the remote team of developers.
In order to better understand how IT staff augmentation helps to drive the business economy forward, let us look at some statistical data.
- According to www.hackernoon.com, the direct impact of artificial intelligence on automation brought about the 4th industrial revolution, which in turn impacted the global employment market hugely. However, it was observed mostly in the developed countries that there was a sure lack of interest in IT education in the past decade that led to a situation where the countries, such as USA, UK and South Korea who were considered as the pioneering leaders of innovation and technology at some point are suffering from lack of talent for their industry today. In the United Kingdom, there has been a fall in creative and innovative industry revenue generation by a value of £100 billion.
- According to reports by The Edge Foundation, the UK there is already a recorded loss of £63 billion per year due to 600,000 vacancies that remain unfilled in information technology job market.
- Statistics from the US Bureau of Labour estimates that by the year 2026, the US IT workforce requirement will spill beyond 1.2 million unfilled vacancies. In comparison, countries such as Israel who have resorted to staff augmentation are rather ahead of the competition in terms of innovation and R&D initiatives.
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Is that an indicator of stagnation for the US creative industry? We cannot vouch for that right away, however, it also indicates that like the present situation, two types of businesses, namely those who will understand the importance of global collaboration and extend beyond local market, adapting to software development staff augmentation and those who will still depend on local talent pool or in-house development teams will thrive in the near future. However, from our observation it is quite clear which will be more successful.
Software development staff augmentation enables organizations to keep a check of the project with direct decisions on the team structure, such as deciding on team leads, delegation of the work based on deliverables. A major challenge for IT staff augmentation companies, apart from finding and hiring skilled IT talent, is employee retention after the training has been provided. Even there is already an existing team handling different projects, a situation where multiple projects are coming in calls for additional IT staff. IT staff augmentation gives organizations the flexibility to take on new projects even when the in-house team do not possess the skill sets, application expertise, management skills or the time to handle those projects.