Staff Augmentation – Best way to operate, despite layoffs
The economy is slumping; inflation continues to rise. This scenario can force many companies to lay off some staff. At moments like these, as a CTO, you face a tricky question – how do you keep operations running? The answer – QA & Dev Staff Augmentation.
It’s a question many companies are facing at the moment. According to a CrunchBase report, as of June 17th, 2022, at least 98 US tech companies, both startups, and large tech companies, have combined for approximately 21,000 layoffs. This situation has placed a significant burden on the remaining team, managers, and owners at these companies to determine how to move forward. Some will choose to go on business-as-usual, with their team working under stress, and with the added pressure of more work, without additional compensation. Others may even decide to close shop altogether. What if I told you, though, that there is an alternative solution? Staff Augmentation!
What is Staff Augmentation?
It is an outsourcing strategy that companies use to augment their team capacity with external resources temporarily. This strategy allows companies to raise their capacity without growing their payroll and without taking on the cost of recruiting. Compared to outsourcing projects, this strategy allows companies to keep control of their deadlines, culture, and milestones.
Five Benefits of Staff Augmentation
Staff augmentation is a strategy that many companies have utilized in the past to operate efficiently with great success. Here are five benefits of staff Augmentation that may help you during these times.
Cost cuts without reducing quality
Hiring an in-house team carries hidden costs that many don’t consider when deciding between an in-house and outsourced team of engineers. Between taxes, benefits, cost of recruitment, and other expenses, in-house engineers could cost you approximately 1.5 times more than the offered annual salary. Meanwhile, when you outsource your QA and Dev Staff Augmentation from a company that specializes in delivering the best talent, you forego all these expenses without settling for anything less than the best talent for you. Visit our true-cost calculator if you’d like to see how much you could save by outsourcing your engineering team with us.
Specialists in their field
Something else to consider is that when you outsource your QA and Dev Staff Augmentation to a company that specializes in QA and Software Development, you will not just get the right team for you, but you will also get all the experience and expertise they possess. This option means your internal team will also benefit from the opportunity to learn from these specialists.
Top-quality talent pool without regional limits
Although some companies specialize in QA and Dev Staff Augmentation, many still face the same limitations and obstacles you face when recruiting new talent – lack of a substantial talent pool. This lack leads to companies losing competitiveness, which leads to a negative impact on the bottom line. Nevertheless, a selected number of companies offer the best of both worlds; by specializing in QA and Dev Staff Augmentation and working with Distributed Teams.
Distributed teams are teams that are decentralized and are not bound to specific cities or regions. Thus, this allows them to solve the challenge of a limited local talent pool.
Another point to consider when growing your team is the need to grow fast without the risks that present themselves with an unexpected halt in your growth.
To expand on this point, I’d like to point back at the CrunchBase report, which discusses companies that had to lay off some of their staff because they overhired during rapid growth periods. Doing this is certainly healthy for the financials of a company. Yet, it exposes them to criticism from shareholders and others.
When you outsource your QA and Dev Staff Augmentation, you do not have to worry about this. If your growth suddenly slows down, you could always reduce your augmented team without reporting a staff reduction. Furthermore, when you are ready to pick back up, your Staff Augmentation partner will be prepared to help you ramp up as quickly as possible.
Many companies outsource their projects to others, which may be the right thing for them. Nonetheless, suppose you want to keep control of your deadlines, budgets, and culture. In that case, an augmented team of QA or Dev engineers is precisely the scenario that you need. We discuss this further in our article, “How to grow your team, without losing control“; check it out if you’d like to know more about this topic.
Finally, augmenting your next team of QA and Dev engineers through a company that specializes in Staff Augmentation will not only deliver on these benefits listed above but will also help you stay competitive without risking an exodus of your talented internal staff. Therefore, your bottom line will appreciate it and your team.
If you are ready to start augmenting new engineers to your team, look no further than TechAID. We specialize in QA & Dev Staff Augmentation through distributed teams. Our focus on quality and seamless integration with you sets us apart.
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