Top IT Staff Augmentation Trends and How They Affect Your Business

Attracting and retaining skilled local workers has become a challenge in many countries. According to a 2023 survey by ManPower Group, 77% of employers worldwide say they find it difficult to get the skilled talent they need. Out of this number, a whopping 78% is in the IT industry.

IT Staff Augmentation Trends

Companies are increasingly looking to staffing options like IT staff augmentation to fix this issue. But exactly what is staff augmentation and how does it help tech firms?

IT staff augmentation is a strategy where external IT teams — usually working remotely — are used to supplement the in-house staff. This system of work is a good way to address local skill shortages, boost productivity, and deliver a faster time to market, and can be done on a short or long-term basis, depending on the needs of the company.

Discover the top IT staff augmentation trends happening today and how these trends can affect your project. Read more.

There are many benefits of IT staff augmentation, but it’s important to understand how this trend can impact operations, for both tech and non-tech companies.

Tech companies

The rising trend in staff augmentation means a lot for companies that create IT products for end-users. Some of the ways the trend impacts tech businesses are…

  • Access to specialized skills

One of the biggest effects of the staff augmentation trends on IT companies is the ability to obtain specialized talents that might not be accessible locally or in-house. These businesses can increase production and make optimal use of resources by using the on-demand workforce.

  • Cost savings

With the increasing demand for user-friendly IT products, the expenses involved with hiring and maintaining qualified software developers have risen. By supplementing your workforce with offshore cheap staff augmentation, you can cut down on these expenses and keep your company running at peak efficiency without sacrificing quality or productivity levels.

  • Improved efficiency

When tech firms supplement their workforce with professionals who are already familiar with the technology and processes, it leads to improved efficiency. The more qualified hands you hire, the faster you can get work done.

  • Flexible staff strategy

Another way the trend of IT staff augmentation impacts tech firms is in the area of flexibility. This IT staffing model means improved team scalability for tech firms. Since remote teams tend not to come with long-term commitments, this flexibility can be extremely valuable during periods of growth or slump.

  • Hybrid work system

The use of hybrid work systems has become common in tech companies as it is helping them achieve flexibility in their production strategies. In the augmented staffing model, in-house and remote staff work together in order to complete various tasks at different times of the day, leading to improved productivity and faster time to market.

  • Business resilience

Another area the rising trend of staff augmentation in IT can have on tech firms is improved business resilience. Tech firms should be able to quickly weather unexpected events and provide solutions to any IT-related issues, without having to make significant changes to their staffing. Having a contract IT workforce in place can help them to do both of these things.

Non-tech companies

IT staff augmentation is not just limited to tech companies. Non-tech companies also need people in IT teams to improve their processes and provide a better user experience. For these non-tech businesses, the impacts of the rise in IT staff augmentation market trends are…

  • Improved data management

Businesses in industries like retail, hospitality, real estate, and consulting — non-tech businesses that use tech tools — tend to have a lot of customers, and these firms need people who can help them manage the data they generate. The staff augmentation model can supply skilled IT professionals who can use these tools properly and effectively.

  • Improved flexibility

For businesses that have peak and off-peak seasons, flexibility is another area where IT staff augmentation will have a big impact. These businesses can scale up or down their IT staff as needed, and not have to worry about maintaining an in-house team during slow sales periods.

  • Smarter project management

Project management is another area where IT staff augmentation can significantly benefit non-tech companies. Having a team of skilled workers can help to ensure that projects are completed on time and within budget.

  • A hybrid work system

More and more non-tech firms recognize the need of having a robust IT infrastructure, and having access to remote IT experts working alongside their in-house staff can help them satisfy this demand. This can result in a hybrid work arrangement with full-time workers and augmented personnel available to respond to the needs of customers at all hours of the day.

  • Improved business resilience

IT staff augmentation can also influence non-tech companies in the area of business resilience by providing them with access to skilled IT specialists who can quickly address any IT-related problem that comes up.

Regardless of whether you are in the tech industry or not, leveraging the right professional to augment your local team can do a lot for your competitive advantage.

The short answer is yes. According to reliable data, the global market for software products is expected to hit $2,157.19 billion by 2026. Unless tech companies have access to a vast pool of specialists, it will be impossible to achieve this growth rate. The desire to tap into this huge market makes this outsourcing model even more popular today.

The different IT staff augmentation types have also grown in popularity because businesses now realize that leveraging agile talent from all over the world will help them gain competitive advantages.

Overall, it is anticipated that as businesses struggle to satisfy the always-increasing client demand, the popularity of IT staff augmentation will increase more in the upcoming years.

Read more about the difference between managed services and staff augmentation to better understand the nature and all of the advantages of the model.

As we move further into 2023, here are a few trends of IT staff augmentation that will likely be big this year and beyond.

The lack of tech talent will continue

The current tech talent shortage is not going away anytime soon. In fact, according to the IMF, this shortage may hit 85 million tech workers by 2030. What this means is that in 2023 and beyond, the number of qualified candidates available to meet the growing demand for tech jobs will shrink even more.

Business adaptability is a must

In 2023 and beyond, businesses must be able to quickly adapt to changes, both expected and unexpected, and keep their operations going regardless. This requires a flexible and agile approach to IT staffing, where companies can quickly ramp up or scale back their staffing needs as needed.

Increased demand for specialized skills and certifications

The rapid pace of technological change and digital transformation will continue to make IT professionals in high demand. This will not be just any professional though. Instead, it will be those who have specialized skills and certifications, especially in emerging technologies like AI & ML, VR & AR, IoT, Blockchain, and so on.

Emphasis on soft skills

According to WEF, 40% of workers will need to reskill within the next 5 years, especially in the areas of critical thinking, problem-solving, communication, and collaboration. It follows, therefore, that IT experts with these soft skills would be in great demand even in the IT sector, where technical abilities are crucial.

Increased use of AI and automation

AI and automation are likely to transform the IT industry in 2023. IT teams that can leverage AI and automation to streamline their processes and provide better service to clients will have a competitive advantage.

Checklist to Find Out When Your Business Needs IT Staff Augmentation?

Not sure if your business is ready for IT staff augmentation? If the following scenarios describe you, then you need to consider implementing this model for your company.

  • Your project requires a specific skill set

Certain software projects require specific skill sets which your in-house team may not possess. In this situation, it makes more sense to bring in someone who already has the needed skills than to spend time and resources training your team.

  • You are struggling to hire locally

One of the most common problems software development firms face these days is the dearth of qualified local talents. If there is a shortage of the skills you need in your area, then it pays to build or supplement your team with developers from another location, preferably in a different country.

  • Your internal team is busy with another project

Perhaps your internal team is already stretched thin and you need some extra support to get the job done. IT staff augmentation will get the help you need so that you don’t overburden your existing staff.

  • You need innovative ideas

Sometimes, what you need to break the creativity block is an infusion of new talent. Introducing a new team member into the mix will fill up any skill gap you have and supply the creativity you need to get your project back on track.

Or you can study the difference between project outsourcing and staff augmentation to make your decision even more informed.

Get expert's advise

The rise in staff augmentation has led to a more dynamic and competitive recruitment landscape. This trend allows you to bypass the typical recruitment procedure and understand how to recruit tech talent who can immediately and seamlessly integrate into your team.

IT recruitment teams that take advantage of this trend will enjoy the following benefits.

  1. IT staff augmentation provides access to a large pool of skilled IT professionals.
  2. The flexibility to hire IT staff as needed, allows businesses to manage costs effectively.
  3. Supplement and reinforce in-house IT teams, ensuring smoother project execution.
  4. Bridge skill gaps and ensure specialized expertise for complex projects.
  5. A team or team member that is primarily committed to helping you achieve the goals and objectives of your software product and nothing else.

What Super Power Can IT Staff Augmentation Bring to Your Business from Newxel Experience?

The Great Resignation has increased the gap between the supply and demand for tech professionals, and businesses are increasingly inventing new ways to fulfill their productivity goals. For most of these companies, staying ahead of the market trend for IT staff augmentation is the solution. The key, however, is knowing how to get started. This is where Newxel comes in.

Newxel is a global staffing provider that helps companies find and hire top-tier IT professionals to meet their specific needs. With a vast database of competent IT people from across the world and an emphasis on quality and customer satisfaction, Newxel can deliver IT staff augmentation services to firms and help them implement them swiftly and efficiently.

Optimize your in-house team with the right expert from Newxel. Schedule a call.

Conclusion

The scarcity of skilled employees is not ending anytime soon. But by understanding these staff augmentation trends and adapting to them, businesses can stay ahead of the curve and attract the best IT talent to drive value and productivity.

Build a winning IT team with Newxel.

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FAQ

What are staff augmentation services?
Staff augmentation services like what Newxel offers involve hiring offshore professionals to complement a company's existing staff for a specific project or period.
Why is staff augmentation popular?
Staff augmentation is popular because it offers businesses flexibility, cost savings, and access to specialized talent without committing to longer employment contracts.
Why are IT staff augmentation trends important for business owners?
It is important that business owners pay attention to IT staff augmentation trend because it enables them to stay updated with the latest advancements in the tech job market and attract the best talent, resulting in enhanced productivity and allowing the company to grow.
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