What is Resource Augmentation? and why is it Important?

Everything You Wanted to Know About What is Resource Augmentation? and why is it Important?

What is Resource Augmentation?

To remain firm in the competitive software development services market, companies look for ways to augment their resources and services from an external development provider instead of maintaining a regular development staff. Resource development augmentation, therefore, gives a development solution to companies that seek additional skills from experts without necessarily making a long-term development commitment to them (1). Hiring development employees for a certain period gives development employers flexibility. On the other hand, the development employees benefit by gaining relevant experience for the minimum period they work in the company.

Frequently Asked Questions About What is Resource Augmentation? and why is it Important?

Resource augmentation, also known as contracting, is when companies hire temporary workers for a specific project or timeframe. A prime example is during the COVID-19 pandemic, when healthcare providers were swamped. They needed extra staff, like nurses and other medical professionals, but only temporarily. Contracting allowed them to quickly scale up their workforce to meet the surge in demand.
Employment agencies play a key role in resource augmentation. They specialize in finding contract workers and act as a middleman between the company and the temporary staff. Let’s say a software company needs extra developers for a month to work on a cloud project. Instead of spending valuable time searching for qualified contractors, they can turn to an employment agency. The agency handles the entire process: screening candidates, scheduling interviews, and even conducting the interviews themselves. This saves the company time and resources, ensuring they get qualified contractors quickly. Essentially, the agency takes the heavy lifting of finding and vetting temporary staff off the company’s plate.

When do you need resource augmentation (aka contracting)? Here are some common scenarios:

• New side project
  Launching a new initiative? Resource augmentation lets you quickly staff up without the overhead of permanent hires.
• Outsourcing isn’t working
  If your current outsourcing model isn’t meeting your needs, resource augmentation can provide more control and flexibility.
• Short-term projects
  Got a project with a defined timeline? Contractors are perfect for short-term engagements.
• Need to launch fast
  Resource augmentation helps you ramp up quickly and meet tight deadlines. It’s a great way to accelerate project delivery.

Benefits of Resource Augmentation for Employees (aka Contractors):

• Flexible schedule
  Contractors often have more control over their hours and can work when it suits them best. They can often set their own availability and payment terms.
• Learning opportunities
  Each new contract is a chance to gain valuable experience and develop new skills. It’s a great way to build your resume and broaden your skillset.
• Less pressure
  Contractors often have less direct management oversight, which can lead to a less stressful work environment. They can focus on delivering their specific tasks.
• Better compensation
  Contractors can often command higher hourly rates due to the temporary nature of the work and the fact that they may not be subject to the same deductions as full-time employees. They can maximize their earning potential.

References:

1. https://scand.com/company/blog/staff-augmentation-vs-outsourcing-which-one-is-right-for-you/
2. https://www.forbes.com/councils/theyec/2023/09/21/the-benefits-of-staff-augmentation-and-how-to-choose-an-agency/
3. https://www.forbes.com/sites/forbestechcouncil/2022/07/19/the-right-fit-with-the-right-pick-how-to-build-a-successful-team-with-it-staff-augmentation/?sh=7cbfd31473dd