One of the most visible trends in the business sector is the use of external staff to augment the workforce gaps. This practice is part of the administration and management process that utilizes external companies to fill a position with temporary staff who are specialized in a certain role. Staffing companies which are one of the main suppliers of staff augmentation talents, generate more than 490 billion of revenue worldwide; for every organization, money matters. To secure the future of the company, organizational management should be careful where they spend their money. Providing high compensation without getting quality services can reduce the productivity and financial competency of the company. The IT industry is one such area that suffers due to a lack of qualified workforce who can be engaged at a reasonable price. Hence staff management is an important prerequisite for gaining a competitive advantage in the business sector.
Reasons for the rise of staff augmentation services
It has been estimated that by the end of 2022, the IT sector will be outsourcing its workforce, and the market will be worth more than 400 $ billion (source). The numbers are a reflection of the upcoming expansion of the staffing services market in the next decade. Some of the reasons for the rising staff augmentation services are:
- Lack of talent – Staffing companies, have a large pool of specialized candidates who can provide a certain talent. It is very difficult to attract the right kind of talent to fulfill the company's goals. This costs time and money, while staffing companies can provide such workers on a short-term basis and according to the demands of the organization.
- Staff Management – This includes handling the employee's life cycle from the time they enter the company until the time they exit the company. This also includes the payroll process and monitoring the performance of the employee. The HR department is already bogged down with a lot of work that requires immediate attention. Outsourcing staff management services to external companies can help the HR department concentrate on more crucial tasks.
- Cost Effective – Staff augmentation can help organizations to cut costs at various levels. Engaging a new member can be more expensive than retaining the old staff member or using temporary staff. Staffing companies provide training to professionals to help them acquire the skills required to tackle challenges in the current changing business scenario. This also increases the adaptability and flexibility of the staff, who can embrace change instead of resisting it. Staff augmentation can also help a company to diversify its services and provide quality solutions to problems. You can change your workforce according to the needs and demands of the situation. Most importantly, you will have better control of your staff members as the companies will monitor and provide reports regarding the performance of the staff member.
- Attrition – A member of the staff might suddenly exit the company, and this could lead to stagnancy. Staff augmentation will ensure that there is a steady supply of quality staff and project goals are delivered timely.
Tips for choosing the right staff augmentation services

- Quality and Diversity – To choose the right staffing company, it is important to understand whether the staffing companies have a pool of diverse workforce. The staffing companies should have enough candidates to provide quality staff for specific roles. You can understand this by the industries that the specific company services and what kind of role the temporary staff takes on.
- Training – One of the main aspects of choosing a good augmentation service is to research if the company provides training services as well. The temporary staff provided by staffing companies should be regularly trained in the current trends. Staffing companies should also provide training and development services to other companies to increase the retention of staff.
- Cost-effectiveness – A good staffing company will provide cost-effective services that will reduce your financial burden.
- Employee management – A good staffing company will also take care of employee management and reduce the burden on the HR department. The staffing company will provide regular training programs and performance reviews to the company. This will ensure that you are getting value for your money when it comes to workforce quality.
Conclusion
Staff augmentation services are an important tool to increase the productivity of the organization in this highly competitive business sector. Staff augmentation is essential to ensure the development of the workplace, which will increase their adaptability to upcoming changes.
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