Jul 29, 2009

Staff augmentation works!

Staff Augmentation is a global phenomenon. One cannot deny the irreversible flow that it has created across the business world globally. And the main reason for its success can be summarized in one word: costs. An offShore staff augmentation strategy is estimated to save a medium or large company around U$D 27.900 a year per developer only between:

* Benefits (medical, dental, 401(k) plan): $18,000;
* Administrative costs: $8,500 and
* Orientation/training: $1,400.

Nevertheless, the greater benefit of outsourcing is the migration from a fixed-cost IT environment to a variable pricing model that allows firms to gain better control over operating costs.

If you are thinking about a staff augmentation strategy, you may have certain concerns regarding this new business model and how to make it work for you.

Here are 5 tips for success most experts would agree on:

1. Choose your staff augmentation company carefully for they will be your strategic partners during the project. In particular, make sure their developers are fluent english speakers and writers and highly experienced in remote consulting.

2. Remember technology is just a tool to achieve organizational goals. This is why, you should always try to look for a milti-talented team capable of offering the right balance between IT and business points of view. Therefore, make sure the it is made up of both: IT experts and business analysts.

3. Work towards a shared vision of the project not only between you and the development team of your choice, but also within your own organization.

4. Don´t rush during the planning stage. This could save you a lot of time and money in the end.

5. Remember a good software is the one that simplifies everyday processes. Therefore, get all key users in your organization involved before deciding on the functionality that needs to be developed.

1 comment:

  1. Thanks for the staff augmentation tips. There is a a lot of money to be saved with this new staffing strategy, and it should be a big help to small and medium sized businesses.