Rising Trend of IT Staff Augmentation in 2022

Augmentation

Let’s first begin with how the entire world is undergoing a major transformation driven by the IT and digital landscape and how the IT industry is so predominant in this era.

Here are a few impactful statistics and happenings of the IT sector.

  • The world is undergoing a technological revolution where we are now making the shift from Web 2.0 to Web 3.0. According to reports by Zippia, the tech industry makes up 35% of the total world market and Statistia forecasts that emerging tech will experience a growth rate of 104% between 2018 and 2023.

The Big Four i.e Google, Amazon, Apple and Meta are collectively worth $4 billion.

The Information Technology (IT) industry is in full swing with regards to driving the world towards new unimaginable avenues to making IT adoptions seep into minute parts of our day-to-day life. Today we live in a world that is heavily driven by digital innovations, and businesses at large have leveraged technology backed strategies and approaches to keep up with the pace and competition. Since the Covid-19 pandemic, the need for tech innovations and digitization has established its importance in businesses across all domains and industries around the world. It has been a rather quick journey, in fact 90% of the world’s data has been generated between 2019 and 2022. This means that the technology growth witnessed by the world has quadrupled over the past 3 years, and this is only going to get bigger with time. People from all around the world are well aware about the numerous benefits the technology landscape has to offer and they are leaving no stone unturned to make the most of it and stay ahead in the race. As a result of technological advancements, the demand for IT professionals is on the rise, businesses are in desperate need for IT professionals to help them take the leap towards a more advanced and successful business ecosystem. The way the world does business has changed drastically since the pandemic.

We can clearly see the surge in remote working opportunities the working class market has to offer. Apart from the remote working culture, another trend called Staff Augmentation has evolved and is getting more and more popular among organizations that wish to evolve with changing times. Specially, in the IT sector the demand for project-based human resources is of great benefit for both, the resource and the organization. In this article we will tell you about what Staff Augmentation actually is and how this trend is rising in the IT Industry.

 What is Staff Augmentation & Why is it a rising Trend in 2022

Staff Augmentation which is also widely known as Team Augmentation is the termed used when companies fulfil their staffing or human resource needs on the basis of specific project requirements. It is considered to be one of the most effective and efficient way to onboard skilled and professional resources on an on-demand basis model.

Staff Augmentation or Team Augmentation as many call it, enables companies to temporarily access industry specific skilled professionals with the help of third-party staffing partners. This is an innovative and unique method of temporarily employing staff that is highly talented and demands lesser nurturing from the organization as compared to permanent. Although this sounds similar to contractual jobs, it is very different from it.

The key difference between the two is that in a contractual job, employees are a part of the company and work across different projects and variants as a regular employee, however, in the case of staff augmentation resources are hired on the basis of project requirement, they only complete the project they are hired for which could range anywhere between a tenure of 1 month to 12 months or in some cases even more, solely depending on the project requirement. Here they do not engage in any other activity or projects the company has, also they are not a liability on the company of any sort as their relation with the company is purely dependent on the tenure of the project they are hired for.

The Information Technology (IT) industry is greatly evolving and the demand for skilled and talented IT professionals is greatly rising.

With new technologies like Metaverse, Blockchain, Cryptocurrency, 5G, Generative AI, Cloud-Native Platforms (CNPs), Augmented Reality (AR), Virtual Reality (VR), Machine Learning (ML), Decision Intelligence (DI), Hyperautomation, etc. coming into dominance, new employment opportunities for IT professionals are emerging, unlike ever before. And to much surprise, the mindset of employees is also changing. The new generation that comprises of Gen Z’s, Gen Y’s and Millennials are more drawn towards taking up short-term projects instead of staying dedicated towards an organization as a full-time employee. One of the prime reason for this could be becasue the pay outs for short-term project-based recruitment is comparatively higher as compared to the salary offered by a full-time job. Also, in this case professionals could take up multiple projects at one time depending on their capabilities and limitations. Many tech giants are now shifting their hiring strategy from the traditional full-time employee model to a project-based short-term hiring model

Top benefits of Staff Augmentation in the IT Industry

  • Hiring productivity
  • Flexibility of resources
  • Reduces cost of hiring
  • Faster project delivery
  • Reduced overhead cost
  • Lower recruitment effort

Case scenario – Suppose you are a company and you have a requirement for a project that needs to be delivered in the next 2 months, how will you go about it? Going through the entire hiring and onboarding process itself could take you more than 1 month, this will not only drain you but also tremendously affect your delivery timelines, and you may even end up losing out on the project. Here is when Staff Augmentation steps in, instead of going through the tedious and lengthy process of hiring somebody you can simply reach out to a staff augmentation company and they will get you the best talent within hardly a few days and if you get lucky it could be a few hours too. This helps you get your project started smoothly without having to screen through numerous profiles, negotiate joining dates or pay scales or go through any hassle for onboarding an employee. The staff augmentation company takes care of it all. Experts believe that this is one of the quickest, easiest and effective way of completing projects on time with quality outputs.

Some Interesting Statistics

  • The US IT staffing market was valued at USD 32.50 billion in 2021 and is expected to grow to USD 43.68 billion by 2027, growing at a CAGR of 5.05% during the forecasted period.
  • Staff Augmentation is a USD 92.5 billion market.
  • 6 of the top 10 fastest e-commerce countries in 2019 hailed from Asia-Pacific region, led by India and Philippines.
  • Reports state that the most successful workplace teams ideally comprise of 4-9 team members.

Written by

Jay Anthony,

Marketing Head, TECHVED Consulting

Tags: #staffaugmentation #webdevelopment #outsourcing #hiring #tech #consultancy #jobs #itstaffing #technology #remoteworking

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