In today’s fast-paced business world, companies are constantly on the look for ways to stay competitive and improve their bottom line. Offshore Staff Augmentation One of the ways to achieve this is by reducing costs without compromising quality. Offshore staff augmentation has been gaining popularity as a cost-effective business solution looking to expand their workforce without incurring high overhead costs. And according to a Clutch study, 37% of companies already outsource their software development process, with this number expected to increase exponentially in the years to come. So, in this blog post, we’ll take a look at offshore staff augmentation and talk about how it can benefit any business (with the information technology sector being the show’s star).
What is Offshore Staff Augmentation?
Offshore staff augmentation is the process of Hire Dedicated Developers or contractors from a different country to work remotely for a company.
In this $82 billion industry, employees are usually located in countries with lower labor costs than in the company’s home country. The company can then leverage lower labor costs to reduce expenses and increase profitability while maintaining or even improving the quality of work. Offshore staff augmentation can be used to fill a variety of roles, including offshore web development, customer service BPO, data entry, and administrative tasks. Also, the acquired staff can work on a full-time, part-time, or project basis, depending on the needs of the company and the terms of the agreement. So, without further ado, let us jump into the reasons why 37% of companies prefer to use this model and what are the benefits of utilizing it.
8 Benefits of Offshore Staff Augmentation
There are definitely more than eight benefits to vouch for the offshore staff augmentation model. However, after meticulous consideration and a thorough examination of the list of pros that come with this model, we have shortlisted the following eight benefits due to them being the lowest and ripest hanging fruits on a very healthy and luscious tree. So, with that being said, let us walk you through the most efficient reaping process.
Cost Savings
One of the primary benefits of offshore staff augmentation is cost savings. Companies can save up to 70% on labor costs by hiring offshore staff. This is because labor costs in countries like India, the Philippines, and Vietnam are significantly lower than in the United States, Canada, or Europe. Companies can leverage these lower costs to reduce expenses and increase profitability.
Access to a Global Talent Pool
Offshore staff augmentation allows companies to access a global talent pool of offshore software development. Companies can tap into a diverse pool of skilled professionals who may not be available in their local labor market. This gives companies a competitive advantage by providing access to a broader range of skills and expertise. And according to a survey conducted by the Global Sourcing Association, 65% of companies that outsourced IT functions did so to access skills that were not available in-house.
Diversification of expertise:
This model enables businesses the opportunity to diversify their expertise by bringing in professionals with different backgrounds and experiences. This can lead to new ideas and perspectives, ultimately improving the quality of the work being done.
Increased Operational Efficiency and Productivity.
Yes, indeed, augmenting your staff from abroad can lead to a drastic shift in productivity levels. This is because companies can leverage time zone differences to provide 24/7 coverage for their customers. This means that tasks can be completed faster, leading to improved turnaround times and increased customer satisfaction.
Focus on Core Business Functions
Offshore staff augmentation allows companies to focus on their core business functions. By outsourcing non-core functions, companies can free up resources to focus on their core competencies. This can lead to improved productivity, increased innovation, and better customer service.
Reduced Overhead Costs
Not having to worry about office equipment, employee laptops/tools, and many other overhead bills like electricity, rent, and maintenance is also one of the key reasons why some businesses opt for this model.
Timezone Coverage:
Businesses utilizing the offshore staff augmentation model can provide round-the-clock development coverage, which can be advantageous for companies with global clients and operations. This allows for faster turnaround times and increased productivity.
Risk Mitigation:
Offshore staff augmentation can help companies mitigate development risks by providing access to diverse and experienced development teams. This reduces the risk of project delays, quality issues, and other common development challenges.
How Flairstech Can Help with Your Offshore Staff Augmentation Process!
Offshore staff augmentation can be a cost-effective solution for companies looking to expand their workforce without incurring high overhead costs. It provides access to a global talent pool, flexibility, and improved productivity. However, implementing offshore staff augmentation requires careful planning and execution. So, by following the steps outlined in this post, companies can successfully implement offshore staff augmentation and reap the benefits it provides responsibly. And we truly understand how hectic and agitating the process of choosing between vendors may be due to the cost and magnitude of the investment. With that being said, regardless of which outsourcing model you’re going to opt for, we would like to reassure you that with Flairstech, you are in the safest of hands because of the following:
- We have over 1,200 available talents delivering top-notch results from three continents (North America, Europe, and Africa) covering every language and time zone on the planet.
- Over 100 global enterprise clients rely on our digital solutions on a day-to-day basis.
- Our size, however, does not affect our agile processes, as we have fast and exceptionally efficient processes when it comes to hiring and time-to-market.
- We guarantee the products we deliver for life.
- We will cut your development budget in half, increase your overall output, and achieve the desired results.
At Flairstech, we came up with the ideal agile process to enable companies wishing to outsource either part of or their entire full cycle software development. Moreover, if you need any assistance deciding on a digital solution that will elevate your business or have any questions regarding the development ecosystem in general, schedule a free one-on-one consultation now, and one of our engineering managers will gladly assist you.
FAQ’S
How Does Staff Augmentation Differ from Traditional IT Staffing?
Traditional IT staffing typically involves hiring employees directly, either as full-time or contract workers. Staff augmentation, on the other hand, involves partnering with a third-party firm that provides IT professionals on a temporary or project basis.
How Long Does the Offshore Staff Augmentation Process Typically Take?
The timeline for staff augmentation can vary depending on the specific needs of the organization and the availability of qualified IT professionals. However, we at Flairstech are able to provide qualified candidates within a matter of weeks or even days.
How Is Nearshore Software Development Different from Offshore Software Development?
Nearshore staff augmentation software development is different from offshore software development in terms of geographical proximity, time zone, cultural affinity, and language. Nearshore companies are usually located in neighboring or nearby countries, while offshore companies are usually located in distant countries with different time zones and cultural backgrounds.
How Can Companies Overcome the Challenges of Offshore Staff Augmentation?
Companies can overcome the challenges of nearshore staff augmentation software development by investing in communication and collaboration tools, establishing clear communication protocols, hiring local project managers, conducting regular site visits, and investing in cultural training.
What is the difference between offshore staff augmentation and outsourcing?
difference between offshore staff augmentation and outsourcing is the cost. Offshore staff augmentation is typically more cost-effective than outsourcing, as the company only pays for the services that it needs. Outsourcing, on the other hand, can be more expensive, as the company typically pays for a fixed number of hours or a fixed fee.
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