IT Staff Augmentation pros and cons
Staff Augmentation is a service where a company hires Subject Matter Experts (SME) on a contract basis to augment their employed staff. These SMEs can help clients achieve their business goals.
Every industry report in the past two years clearly points out the shortage of expertise in the information technology and engineering fields. This is the case in Canada, the US, and most countries with advanced technologies.
To use Staff Augmentation is not a yes or no question. Staff Augmentation must be part of a company’s IT strategy if it intends to stay competitive and meet its operational needs. A report by KPMG LLP issued in August of 2021 notes that nearly 70 percent of Canadian companies are struggling to find skilled talent (1). Other more recent reports from Texas (2) and Ohio (3) demonstrate the same challenges in the United States.
These reports are brief and leave much to be discussed; however, their main point in shortage of resources remains clear. The US news point to offshore staff augmentation as a solution ignoring the option of local contract resources. Many experienced IT professionals choose to remain independent for various reasons, and despite common belief, money is not the main reason.
If you consider the overhead for employees and the long-term cost of maintaining employees, including insurance, health benefits, sick days, and training, it becomes evident that contract IT staff is not more expensive in the long run. I did not even mention the cost of project delay and the risk of not meeting business demands.
Resources shortage and the reports mentioned here are consistent with what we at Yoush see in the greater Toronto area. Some of the top IT skills searched for are:
- Full Stack developers and all other experienced developers
- Cloud Application Expertise such as Dynamics, Azure
- Digital expertise such as User Interface (UI) and User Experience (UX) designers
- Project Managers and Business Analysts
- Business Intelligence / Data analysts
- Cyber Security
CIOs need a staffing strategy that includes Staff Augmentation for their immediate and short-term projects if they intend to meet business objectives. It is no surprise that our staff augmentation service keeps growing without a sales force in place.
Bud Derakhshani – President, Yoush Consulting – March 4, 2022