Staff augmentation is a flexible way to hire skilled IT resources from outside your company and manage them as part of your internal IT team. These resources are employed directly by a staff augmentation vendor, thus eliminating the cost and hassle of hiring full-time staff members.
Offshore and nearshore staff augmentation services enable you to tap into the global talent pool and quickly get access to the right expertise if there is a shortage of IT professionals in your area. You can hire qualified professionals to work for you remotely from across the world, usually at lower prices than hiring locally.
IT staff augmentation can be a lifesaver in a wide variety of situations. Below are some of the most common that call for a staff augmentation model.
Why is staff augmentation so popular in software development?
For starters, let’s take a look at some of the reasons why staff augmentation is so common in the IT industry, and why it may be the solution you’ve been looking for.
Drawbacks of the staff augmentation model
There are more than 185,000 developers in Ukraine. The numbers are expected to grow to over 200,000 tech specialists entering the tech industry by the end of 2020.
4,000 tech companies
Ukraine is home to over 4,000 tech companies operating in the market. Among them, over 1,600 companies specialize in software development services.
IT is Ukraine's second largest export
Ukraine’s IT industry is the country's second-largest export sector. Outsource services account for the majority of the sector, with many foreign companies reaping the benefits of Ukraine’s vast tech talent pool.
The largest exporter of IT in Europe
According to UNIT.City, Ukraine is the largest exporter of IT services in Europe. Ukrainian exports of IT services are expected to be $5.4 billion in 2020 and $8.4 billion in 2025.
Every hiring model has its drawbacks, and staff augmentation is no exception. Here are some of the challenges associated with staff augmentation — and how you can turn them into benefits.
The risk of poor cultural fit
Augmented staff may not always fit in with your company’s existing culture and working procedures. There’s always a learning curve before your contractors become fully familiar with the workflow. This is why it’s important to hire people who share your company’s values and appreciate your working style.
When you hire remote specialists from UVIK, you’re free to hand-pick the members of your augmented team yourself. You can conduct as many personal interviews as you need to test your potential team members and see if their personality and skills are a good match for your business.
Not the best fit for long-term projects
Outstaffing vendors must add overhead and margin to their direct labor costs. In the short-term, this increased cost is offset by the reduced costs of hiring and turnover, as well as decreased administrative expenses. However, when used as a long-term solution, staff augmentation may turn out to be less cost-effective or even more expensive than outsourcing or hiring in-house. Another important risk to consider is the potential loss of knowledge control. Your augmented team will accumulate knowledge and skills that may be essential for your organization. Without contracted service commitment or proper documentation, chances are you’ll end up losing a lot of important information if your remote staff leaves the team.
At UVIK, we’re proud to say many of our clients have stayed with us for years since we started in 2016. We’re committed to a long-lasting cooperation and the value we bring to their projects and businesses. You or your project manager can control task completion, while we take care of the rest, including payroll, talent management, and workplace. Our account managers will stay in touch with you at all times, making sure your remote developers have all the tools and infrastructure they need to work on your tasks — at no added cost.
The need to rely on the service provider
In the staff augmentation model, remote staff members are employed by an outside service provider. It can take some time to find the right staff augmentation agency offering the right skill set for your project. Moreover, it’s worth remembering that your augmented team members are primarily committed to their direct employers. If you decide to terminate the contract with your outsourcing vendor or a team member assigned to the project decides to leave their job, you may need to start over again with new people. Hence, you may end up spending more time and money rearranging things.
At UVIK, we start with understanding your project requirements and quickly integrate ourselves with your team to get the job done. Most of our employees have stayed and grown with UVIK for over 5 years. We know how important it is to maintain long-lasting relationships with your remote team members, and we take special care to retain each talent you hire with us. And in the rare case when you’re not satisfied with the recruited professional, UVIK will find a substitute without charging any fees for the replacement.
The added complexity of working across time zones
Different time zones may become one of the major challenges with an offshore development team. It is better to schedule meetings, planning sessions, and reviews for overlapping business hours between time zones when both your in-house and remote offshore teams are up and working.
With UVIK, you can take advantage of the convenient UTC+2 (EET) time zone, which makes Ukraine a great destination for both offshore and nearshore staff augmentation. We’re 7 hours ahead of the Eastern Time, 10 hours ahead of the Pacific Time, and just 1–2 hours ahead of most European countries. Our developers are available 8 AM to 8 PM EET, so it will be easy for you to stay in touch with your Ukrainian engineers and receive timely updates on your project’s progress, no matter where you are in the world. Should the need be, we can adjust the working schedule of your augmented team to have more overlapping working hours with your on-site staff.
Staff augmentation often comes with added costs for management overheads. You may need extra time and resources to supervise the increased number of people in your team. Some staff augmentation vendors may offer you to hire their project managers alongside the remote development team. Either way, it’s important that you have sufficient insight into what your augmented staff is doing and stay updated about each task in the process. If you lack relevant management expertise or your internal management processes happen to have flaws, the staff augmentation resources will be affected as well.
At UVIK, we make every effort to ensure seamless collaborations at all stages. We connect you directly with your remote developers and let you manage your augmented team yourself, without any intermediaries. Our experts will adapt to your management approach and you will have full control over each step of the development process, with regular standups, code reviews, and retrospectives.
Who provides software development services?
Staff augmentation isn’t the only option for offshoring/nearshoring your development. If you feel that the staff augmentation model doesn’t fit you for some reason, consider the following other ways to source remote development talent.
IT staffing agencies
Staffing agencies handle the work of finding qualified in-house workers on behalf of a company, or appropriate positions for a candidate looking for a job. As a rule, IT staffing agencies focus on finding the right technical fit for a particular industry or type of work, based on the requirements set forth by a company. In some cases, a staffing agency may also assist in salary negotiations, interviews, and paperwork.
Gig platforms such as Freelancer, Upwork or Guru connect clients and freelancers for a commission fee, providing quick access to software engineers from around the globe. You can hire freelance software engineers on an hourly or fixed-price rate. As a rule, clients and freelancers are able to leave reviews about their experience working with one another. This helps users set the right expectations before any project begins, but aside from that, there is no guarantee to the quality of work produced.
On-demand talent platforms
With on-demand talent platforms such as Toptal, businesses can hire specialists from a pool of previously vetted freelancers with niche skills in a selection of industries. Besides the vetting process, businesses can also take advantage of faster talent-matching for their personal business requirements. However, talent platforms are often criticized for their intransparent pricing and lack the after-hire support clients often need.
An independent contractor is an individual, business, or corporation providing IT services under a contract or a verbal agreement. Independent contractors often work as freelancers, but they typically engage with one client for a longer time frame.
Boutique software consulting firms
Boutique software development companies such as UVIK focus on providing high-quality niche services to a small number of clients. As a rule, these are small, industry-focused companies with deep specialized expertise, experience, and technical know-how to handle complex projects in specific areas and/or industries. Boutique software development companies aim to establish strong, trustful relationships with their clients and commit themselves to the clients’ success. For these reasons, they’re believed to be the most trustworthy and efficient service providers in the software outsourcing industry.
Software outsourcing vendors
“IT software outsourcing” is an umbrella term covering multiple practices of contracting work to an outside party. That said, companies presenting themselves as “outsourcing agencies” are often larger companies offering multiple sourcing models to corporations and smaller companies alike. As a rule, their developers will work separately from your company, and won’t be directly involved with the rest of your internal development activities.
Captive IT offshore centers
If you’re looking to deploy a large team of professionals to work for you on a long-term basis, a viable solution would be to establish your own offshore R&D center in a country with a more favorable business environment and wider tech talent pool. Opening a remote R&D center from scratch in another country means you’ll need to delve into the legal system of the country, learn its cultural specifics, and take on all associated risks and expenses. However, having a full-fledged team working exclusively for you will almost certainly pan out well in the long run.
What’s the difference between staff augmentation, managed team services, project outsourcing, and independent contractors?
Now that you know the market of software development better, let’s see how different service providers compare to staff augmentation.
Staff augmentation vs managed team services
A managed team, also known as the dedicated development team model, falls somewhere between staff augmentation and a fully outsourced approach. Much like with the staff augmentation model, your managed team is 100% dedicated to you and your project. The difference is that you and your managed team share the risks and responsibility for the scope, responsibilities, timelines, deliverables, and service levels associated with your project. The dedicated team works independently of your internal team and has its own outsourced project manager who oversees the team’s daily processes and reports to you or your in-house project managers.
The managed team model is sometimes confused with the managed services approach, a type of outsourcing where you delegate full responsibility and control over the project to a service provider, at a predetermined fee. Managed services is a great model if a company needs long-term external assistance with recurring tasks.
Staff augmentation vs outsourcing
The main difference between staff augmentation and project outsourcing is that with staff augmentation, you have direct control over your team, while with outsourcing, you pass the responsibility for the project to another company. The outsourcing model is results-centric, meaning that the service provider is fully responsible for implementation, maintenance, deliverables, and any other tasks that have been agreed upon beforehand. The main risk of outsourcing is that you pass management control over the project to a third party. As such, the success of your project may rest on your ability to find a quality service provider.
Staff augmentation vs independent contractors
As a rule, independent contractors work to deliver a complete service or system to solve a clearly defined problem. The contractor decides on how to deliver results within the deadlines agreed upon in the scope-of-work (SOW) contract, and the original organization does not control the work process. Independent contractors are self-employed entities, they are responsible for their own taxes and workplace. Some specialized agencies may also offer you a direct-hire service where you can recruit a special contractor directly into your company. This is similar to staff augmentation, except you get a single individual to help fill a company’s specific needs in the long-run.
Below, we’ve put together a table to help you understand the specific features of different hiring models.
|Staff augmentation vendors||In-house developers||Managed team service providers||Outsourcing vendors||Freelancers & Contractors||Own R&D center|
|Team||Selected by the client from among the service provider’s employees||Permanent on-site hires employed directly by the client||Selected by the provider and managed by the client||Selected by the service provider||Self-employed individuals or entities providing work or services to an organization under direct contract||Dedicated remote team recruited exclusively by the organization|
|Scope||Estimated based on the task or project||Determined exclusively by the organization.||Result-centric; based on the scope of the project||Project-based; predefined by the organization||Defined by the SOW agreement or other contracts||Determined exclusively by the organization|
|Team scalability||High||Low||Medium to High||High||High||Low|
|Flexibility||High||Low||Medium||High||Low||Low to Medium|
|Overlap with in-house teams||High||High||Medium to High||None||None||Medium to High|
|Technology selection||Client||Client||Service provider||Service provider||Service provider||Client|
|Task management & project management||Client||Client||Business requirements provided by the client; software requirements managed by the service provider||Service provider||Service provider||Client|
|Workflow development & supervision||Client||Client||Service provider||Service provider||Service provider||Client|
|Workplace & HR||Service provider||Client||Service provider||Service provider||Service provider||Client|
|Payroll||Service provider||Client||Service provider||Service provider||Service provider||Client|
How do you choose the right model?
With that much information, it might be hard to make the right choice. Here are some hints on when to choose each of the software development models.
You need staff augmentation when:
You have an in-house development team, but you need an extra boost of talent for a specific project. This may mean bringing in new specific skills or simply speeding up your development timelines. With that, you want to maintain control over the development process, and you have sufficient management resources and experience to manage your extended team.
You need managed team services when:
You want to remain centrally involved and retain decision-making control over your project, but you lack technical expertise in the desired area and you don’t want to manage a remote team on a day-to-day basis.
You need project outsourcing when:
You have an idea of what results you want to achieve, but you don’t know how to get there. Your company doesn’t have a development team or resources for the specific task, and you can afford to entrust development processes and management to a service provider.
You need an independent contractor when:
You clearly understand your needs and goals and you simply need an extra set of skilled hands to get the job done.
How to make the most out of team augmentation
IT staff augmentation has many benefits, including reduced operational costs, quick access to the latest technologies, and the flexibility to scale. Here are some tips to help you make the most out of your staff augmentation resources.
1. Ensure clear communication
Communication is key to the success of every development project, particularly those with remote workers. A study conducted by the Project Management Institute (PMI) revealed that at least one out of five projects fails to meet its original goals, deadlines, and business intent due to ineffective communications.
When hiring offshore software engineers, it is essential that you establish clear and consistent communication practices for everyone involved in the project, including both in-house and remote teams. Make sure to check in with both teams on a regular basis and quickly address any concerns that may arise.
Another thing to keep in mind is that hiring offshore professionals will bring a more diverse workforce. It is important to create a safe environment where everyone feels comfortable expressing their ideas, experiences, and knowledge. This will help your teams create a shared vision of your project and increase productivity throughout the project.
When you hire offshore software developers from UVIK, we start with understanding your business and your processes before selecting candidates for the job. You can personally interview all prospects to see if their personality and skills are a match for your business. All our employees speak fluent English and share the same get-up-and-go attitude towards deadlines and goals.
2. Establish clear roles and work processes
Clearly defined roles and workflows make it easier to coordinate your teams’ activities. An effective staff augmentation model demands that both internal and remote developers understand their specific tasks and how they fit into the overall project. It’s you who knows your project like no one else, and it’s up to you to need to set out clear expectations for everyone involved in the project.
When you hire remote developers from UVIK, you have full control over your augmented team and all project activities. From the very beginning, we will work with you to understand your scope, objectives, requirements and timeline. We will adapt to your management style and deliver according to your in-house standards.
Here are a few project management tips and ideas to help you manage your team effectively.
- Define the scope of each milestone in your project development.
- Create acceptance criteria for these milestones and how you will achieve them.
- Create technical specifications to explain what needs to be done and how.
- Perform quality assurance checks to ensure every build works as expected.
- Manage the delivery process to keep it in line with your time frame and budget.
- Review and give feedback to minimize the number of back-and-forth changes and motivate your team.
- Document your workflow to reduce ramp-up time and make it easier for augmented staff to integrate into the team.
3. Embrace Management Tools and Technologies
Today’s project management tools and technologies make it easier for teams to keep projects on track by monitoring their progress at every stage of the development lifecycle. Not only will such tools help you get the most out of your augmented team, but they will also provide you with a better picture across all development processes, systems, technologies and developers’ performance.
The developers you hire from UVIK are familiar with all popular management systems. They’ll adhere to your working and reporting procedures just as if they were working for you on-site.
4. Document your code
Software applications require constant updates and maintenance. Documenting your code is a good practice to help different developers understand each other’s code, make updates, and scale in a timely manner. Companies should make an extra effort to ensure that both in-house and augmented teams record their code at every stage of the project.
When you get an augmented development team from UVIK, you own all the code developed for your project and can use it at your own discretion.
5. Embrace flexibility
Remote teams are easier to manage if companies encourage flexibility. Embracing lean development and Agile principles enables teams to be more flexible and achieve the desired results in less time. The Standish Group 2018 Chaos Report showed that Agile projects enjoy a 60% greater chance of success than non-Agile projects. It’s also important to encourage feedback and ideas from both of your teams to identify new ways to improve efficiency.
At UVIK, we apply Agile methodologies and make sure we stay on the same page at all times with daily standups, code reviews, and retrospectives.
How to get started
When you cooperate with UVIK, the staff augmentation process flow goes as follows:
- Evaluating your needs. You will work with UVIK managers to discuss the requirements for the skill set that would best serve your project. We will sign a strict NDA agreement to make sure your idea remains safe with us.
- Pre-selecting candidates. We’ll put together a shortlist of employees in accordance with your requirements and preferences.
- Interview rounds. At this stage, you can screen and interview the specialists we pre-selected for you. You can conduct as many personal interviews and test rounds as you need to find the right mix of knowledge, skills, and values for your team. The ultimate hiring decision is up to you.
- Getting started. We’ll work alongside your company to help new team members get into your processes as quickly as possible with all the tools and project-related knowledge they need.
- Ongoing support. Once onboarding is complete and the developers are fully up to speed, UVIK will provide the necessary administrative and office support for your offshore staff members. We’ll also stay in touch with you throughout the project to quickly address any issues you may have.
Why choose UVIK
1. Senior-level engineers
We are not a hiring agency. All our developers are full-time employees at UVIK who have proved their worth and commitment to our company working across a broad portfolio of projects. All the engineers you hire with us are top-tier senior experts with years of experience in the industry. They require a very short ramp-up time and can begin producing results right away. It will only take about 7 days to assemble the team for your unique situation and challenges.
2. Scale-up and down
With UVIK, you can scale your team up and down whenever you need without sacrificing time or quality. You’ll get the exact skills you’ll need as your business grows or changes.
3. Save up to 60% of costs
With UVIK developers as your augmented team, you’ll only pay for the actual hours each developer worked on your project. We give accurate time estimates and deliver results without delays and budget overruns. Having UVIK as your remote team will cost you up to 60% less than having in-house employees. Our outsourcing rates are considerably lower than those of the USA and Western Europe.
4. No administrative hassle
We also cover all overheads and administrative work — at no added cost. You won’t have to pay for interviews, infrastructure, onboarding or human resource management. It’s all on us. Our account managers will take care of tech equipment, infrastructure, onboarding, paychecks, taxes, office management, HR, retention, and all other administrative duties.