What is Team Augmentation?
Team augmentation refers to adding personnel to an organization to cover necessary positions or roles. It is a standard business practice used by organizations of all sizes to maintain or improve efficiency within the workplace.
There are many reasons why an organization may choose to supplement their workforce with additional team members, such as:
- To cover for an employee who is on leave
- To fill a position that has been left vacant
- To meet the demands of a new project or initiative
- To provide additional skills and expertise to an existing team
Recently, there has been a rise in team augmentation services. The industry has seen a rise from 5.2% to 6.3%. More and more companies are starting to use this type of service to supplement their workforce.
Benefits of Team Augmentation
Team augmentation takes a lot of weight off your in-house staff. But, apart from that, it also has some other benefits.
Lower Costs
Hiring new employees can be expensive. First, you have to go through the whole recruitment process, which can be time-consuming and costly. With team augmentation, you can save on these costs as you will only be hiring additional staff for a specific period.
Flexibility
Team augmentation allows you to be more flexible with your workforce. You can scale up or down according to your needs. It is beneficial for organizations that need extra human resources due to seasonal needs or expansion projects.
Improved Quality
When you supplement your team with additional members, you will be able to improve the quality of your output. In addition, you will have access to skilled and experienced professionals who can help take your business to the next level.
Shorter Time-to-Market
If you need to get a project done quickly, team augmentation can help you meet your deadlines. The additional staff will help you get the job done faster and efficiently.
Components of Team Augmentatio
There are different components of team augmentation services, depending on your needs.
Full-Time Employees
It is the most common team augmentation service. As the name suggests, you will be hiring a company that provides additional staff on a full-time basis. Therefore, it is beneficial for organizations with long-term projects or those needing to fill a vacant position.
Part-Time Employees
Part-time team augmentation is a good option for organizations with seasonal businesses or those going through a growth phase. With this type of service, you can hire additional staff on an as-needed basis.
Contract-Based Employees
A contract-based team augmentation is a good option if you need extra help for a specific project. You can hire a company that provides staff on a contract basis.
Types of Team Augmentation
Before you partner with a company for team augmentation, it's important to understand different types of team augmentation. Then, you can choose the option that aligns with your needs.
The three types are skill-based, highly-skilled, and commodity. Here's what you should know about these types of team augmentation.
Commodity
In this type of team augmentation, companies want workers that can perform a certain task. However, no specific skill is required.
For instance, if you're looking for manual labor or basic warehouse workers, you would opt for commodity team augmentation. It has many benefits, such as lower costs and shorter time-to-hire.
Skill-based
Skill-based team augmentation is when companies want workers with a specific skill set. The skills required will be more complex than those needed for commodity team augmentation.
For instance, if you're looking for customer service representatives or data entry specialists, you would opt for skill-based team augmentation.
Highly-skilled
In this type of team augmentation, companies want workers with a very specific and rare skill set. As a result, the skills will be more complex than those needed for commodity or skill-based team augmentation.
If you're looking for software engineers or marketing experts, you should opt for highly-skilled team augmentation. The main benefit of this type of team augmentation is getting the best talent on the market.
How to Implement Team Augmentation
When it comes to implementing team augmentation, there are a few things you need to do.
First, you need to assess your needs. Next, you need to determine why you're looking for team augmentation and what type of skills you need.
Once you've assessed your needs, you need to find a reputable company that offers team augmentation services. Do your research and read reviews before you partner with a company.
Finally, you must create a contract. The contract should include the scope of work, timeline, and budget.
Team augmentation can be a great way to improve the quality of your output and get things done quickly. Just make sure to assess your needs and find a reputable company. Then, with the right team at your side, you can take your business to the next level.
Myths About Team Augmentation
Companies are often reluctant to augment their existing teams, mainly due to some myths. Here are some common misunderstandings about team augmentation.
Team Augmentation is Costlier
One of the biggest myths about team augmentation is that it's more expensive than other staffing options. While it's true that you will be hiring additional staff, you'll save money in the long run.
The reason is that you won't have to spend time and resources on training new employees. With team augmentation, you can get started right away.
According to the SHRM Benchmarking Report, it takes $4,129 to hire a new employee. On top of that, it takes about 42 days to fill a vacant position. Thus, you're not only spending a lot of time but are also taking too long to fill a position.
On the other hand, team augmentation allows you to lower your costs. Moreover, as soon as you partner with an agency, you can get started with the new staff right away.
Team Augmentation is the Same as Managed Services
Managed services are when you outsource a certain process or function to another company. The company will then be responsible for managing that process.
On the other hand, team augmentation is when you supplement your existing team with additional staff. The new staff will work alongside your current employees.
With team augmentation, you're not outsourcing anything. You're simply supplementing your team with additional staff.
Team Augmentation is Only for Big Companies
Another myth about team augmentation is that it's only for big companies. It couldn't be further from the truth. Team augmentation can benefit companies of all sizes.
If you're a small company, team augmentation can help you grow quickly. You can supplement your team with additional staff and get things done quickly.
Moreover, team augmentation can help you save money. As mentioned earlier, it's more cost-effective than other staffing options.
Team Augmentation is Only for IT Companies
This myth is closely related to the previous one. Many people believe that team augmentation is only for IT companies. Again, this couldn't be further from the truth.
Team augmentation can benefit companies in all industries. If you're looking to supplement your team in any department, such as marketing, PR, or finance, team augmentation is a great option.
How to Choose the Right Team Augmentation Agency?
Working with the right team augmentation agency is critical to the success of your project. Here are a few things to keep in mind when choosing an agency.
Do Your Research
The first step is to do your research and find a reputable agency. Make sure to read reviews and check out the agency's website.
Some companies also disclose their past performance. For instance, if their previous augmentation services have yielded positive outcomes for clients, they're likely to do the same for you.
Get a Quote
Once you've shortlisted a few agencies, the next step is to get a quote. Again, make sure to compare the quotes and choose the one that fits your budget.
You should also inquire about the agency's pricing model. For instance, some agencies charge by the hour, while others charge a flat fee.
Check the Contract
Once you've chosen an agency, the next step is to check the contract. Make sure that everything is in order and that you're comfortable with the terms of the agreement.
If you have any questions, don't hesitate to ask. A good team augmentation agency will be more than happy to answer your questions.
How Much Does Team Augmentation Cost?
The cost of team augmentation varies depending on several factors, such as the size of the project, the duration of the project, and the staff required.
To get an accurate quote, it's best to contact a team augmentation agency. Typically, you should expect to pay between $50 and $200 per hour.
However, some companies have flat-rate payment models. Therefore, you should consider your preferences when selecting a company.
What Efforts Are Required From Your Side When Partnering with a Team Augmentation Agency?
When you hire a team augmentation agency, there are certain things you need to do from your side to make sure that the project is a success.
First, you need to provide the agency with a clear and concise job description. It will help the agency understand your expectations and find the right staff for the job.
Second, you must be available for regular communication. During the project, you'll need to communicate with the agency on a regular basis. Therefore, it's important to address any concerns as soon as possible.
Last but not least, you need to provide feedback. After the project is completed, give the team augmentation agency feedback. It will help them improve their services for future clients. You should also provide feedback during the project to offset any costs incurred due to spotting a problem too late in the workflow.
Mistakes to Avoid When Working with a Team Augmentation Agency
It's understandable why some companies are hesitant to work with team augmentation agencies. After all, there's always a risk of things going wrong. However, if you're careful, you can avoid making mistakes that could jeopardize the success of your project.
Here are a few mistakes to avoid when working with a team augmentation agency.
Unauthorized Access to Intellectual Property
Remember that team augmentation agencies have access to your company's intellectual property. As such, you need to be careful about who you give access.
Make sure that only authorized personnel have access to sensitive information. You should also follow measures to prevent unauthorized access.
Lack of Internal Knowledge
If the team augmentation agency will work on a project critical to your company, it's important to have someone from your team who knows about the project.
That way, if anything goes wrong, you have someone who can help the team augmentation agency troubleshoot the problem.
Failing to Provide Clear Instructions
When working with a team augmentation agency, it's important to provide clear instructions. Otherwise, the team might not be able to deliver the results you expect.
To avoid this problem, create a clear and concise job brief. Of course, you should also be available for regular communication. Xpeer will help you to define the requirements.
Partner with Team Augmentation Agencies Through Xpeer
Team augmentation is a great option for companies of all sizes. It's more cost-effective than other staffing options and can help you supplement your team quickly.
When choosing a team augmentation agency, it's important to do your research. However, doing that can be tedious and time-consuming for businesses with too much on their plates.
Xpeer takes this hassle off your hands, finding the right team augmentation agency for your needs and preferences. We have a network of highly skilled companies that can provide the extra staffing you need to get the job done.
We'll work with you to understand your specific needs and connect you with the right team for the job. Moreover, we will provide ongoing support throughout the project or initiative.Get in touch with us to find reliable team augmentation partners for your project's success.