Staff augmentation: clave para ampliar la capacidad de desarrollo-IT Patagonia

Staff augmentation: a hiring modality to resolve the temporary demand for talent

When a company requires professionals with specialized skills that you do not possess internally and needs to incorporate talent on a temporary basis, The staff augmentation model emerges as a solution.

The same thing happens when a technology firm needs to increase its operating capacity over a period of time. Or when a company expands rapidly and does not want to hire permanent staff until it is consolidated.

In the development of this article we analyze the staff augmentation model as a flexible solution for access to specialized talent on a non-permanent basis. A key tool for adapting to a constantly changing business environment.

We also address the advantages of this type of contracting, its impact on cost management and its legal implications. In addition, we explain how we implement it in IT Patagonia.

What is the staff augmentation model?

Staff augmentation is a strategy that allows companies complement your internal team with external professionals, based on specific needs that must be resolved temporarily.

It is a flexible and effective solution to adapt to the changing and dynamic requirements of a business and optimize its operation.

In addition, it allows companies to Rapidly scale your capabilities and tackle critical projects.

People who join a company's work processes using the staff augmentation model are integrated into the company's internal structure, allowing them to work in a similar way to permanent teams.

Differences between staff augmentation and other hiring models

To further understand the characteristics of staff augmentation and its impact on organizations, it is useful to compare it with staffing models such as direct hiring or outsourcing.

– Staff augmentation vs direct hiring

Direct hire involves adding permanent employees to a company's workforce. These employees receive full benefits and are subject to the company's policies and culture over the long term.

In staff augmentation, professionals are hired on a temporary basis, which gives the organization the flexibility to adapt to the changing needs of its operation. In this framework, the hiring firm does not have the long-term obligation to the benefits and administrative burdens associated with a permanent employee.

– Staff augmentation vs outsourcing

In outsourcing, an external company - or freelance professionals - are hired as service providers to manage a project. It is a scheme in which the provider manages its own work team, with its processes and tools.

In the staff augmentation model, external professionals are integrated into the organization's existing team, under direct supervision and using the company's processes and tools.

Las personas que se incorporan con el modelo de staff augmentation se integran a la estructura interna y trabajan de manera similar a los equipos permanentes. — People who join using the staff augmentation model are integrated into the internal structure and work in a similar way to permanent teams.

What is the staff augmentation process?

To maximize the benefits of the staff augmentation model and ensure that external talent is effectively integrated and contributes to the success of the project, it is important to develop a structured process.

1. Identify needs and required profiles

The first step is to conduct a thorough assessment to identify the specific needs of the project or company.

This stage includes determining what skills, technical knowledge and experience are required, which are not available internally.

Based on this assessment, the professional profiles must be defined. At this point, the technical knowledge, years of experience and any additional skills required for the success of the project are specified.

2. Supplier selection

You need to research and select staff augmentation providers with a good reputation and experience in the sector or a specific technology, such as IT Patagonia. It is important to review credentials, testimonials and success stories.

Once the potential supplier has been selected, comes the stage of negotiating the terms of the contract, which includes responsibilities, duration of the agreement and expected performance metrics.

3. Integrating external talent into the internal team

An onboarding process similar to that for internal staff is carried out, in which they are introduced to the company culture, the project objectives and the tools and processes that will be used. They are also introduced to the rest of the team they will be part of.

Roles are then assigned and expectations are defined, to ensure that external talent understand how to contribute to the team and the project.

4. Performance management and monitoring

Ongoing performance management of external talent is carried out to ensure that they are meeting project objectives and expectations.

This part includes regular meetings, progress reviews, and adjustments to task assignments if necessary.

At this stage, it is vital to establish an open communication channel to provide continuous feedback – both to external talent and to the supplier – and to quickly resolve any issues that may arise.

5. Assessment

At the end of the project or phase in which staff augmentation has been used, an evaluation of the overall performance of the external talent and its impact on the project is carried out. The objective is to: learn lessons that can be applied in future implementations.

Advantages of the staff augmentation model

This hiring strategy is ideal for companies seeking a combination of flexibility, control and access to specialized talent, with optimization of costs and resources.

Below we identify some of the advantages of this practice.

Flexibility in human resources management

It allows companies to quickly adjust their staffing capacity based on project needs, which is ideal for short-term or seasonal projects.

This flexibility is crucial to adapt to unexpected changes in demand, avoiding staff overload or lack of resources at critical times.

Access to specialized and highly qualified talent

It facilitates the incorporation of experts in specific areas that may not be available within the company's current team.

A particularly valuable possibility for projects that require advanced technical knowledge or skills that are rare in the labor market.

Reduction of operating and hiring costs

It may be more economically convenient to hire under this modality, since expenses associated with personnel selection, benefits and training are avoided.

At the same time, the time and resources devoted to the recruitment process are reduced.

Increased productivity

By bringing in additional staff using the staff augmentation model, organizations can scale to meet tighter deadlines and improve overall project efficiency.

Lower risk in hiring

It allows you to test the work of external professionals before considering a long-term contract, which reduces the risk of making a bad choice.

Focus on key competencies

It allows the internal team to focus on strategic and critical tasks, while external resources handle the specific tasks required for specific projects.

Greater control and alignment with project objectives

Unlike outsourcing, where project control may be in the hands of a third party, the staff augmentation model allows the company to maintain direct control over the work performed.

Professionals hired under this model work within the company's structure and processes, ensuring better alignment with corporate objectives and culture.

Con staff augmentation, las organizaciones pueden escalar sus equipos para cumplir plazos más ajustados y mejorar la eficiencia general del proyecto. — With staff augmentation, organizations can scale their teams to meet tighter deadlines and improve overall project efficiency.

Staff augmentation: its impact on cost management

The staff augmentation hiring model involves the possibility of accounting for costs under the concepts of CAPEX (capital expenses) and OPEX (operating expenses).

Let's analyze the distinction between CAPEX and OPEX, which is key in accounting and financial management.

CAPEX:

Refers to long-term investments in fixed assets, such as property, machinery or technology. These expenses are capitalized and depreciated over time.
For permanent employees, associated costs (such as hiring, training and benefits) could be considered part of CAPEX if they relate to the acquisition of long-term skills or assets.

OPEX:

Includes daily expenses necessary to operate a business, such as salaries, rent, supplies, and utilities. These expenses are recorded in the period in which they are incurred.
The staff augmentation model is generally classified as OPEX, as the associated costs are more variable and tied to specific projects or short time periods.

A company's permanent staff may involve CAPEX or OPEX, depending on how costs are managed. While staff augmentation is considered OPEX, due to its temporary and variable nature.

Integration with internal teams in the technology sector

Three key factors ensure a successful and productive working relationship in the technology sector, making the most of the advantages of staff augmentation.

Cultural adaptation. Bringing in external staff can present cultural challenges. It is important to consider how these professionals will fit into the existing team, and ensure good communication and collaboration.
Quality and technical standards. To remain competitive in the market, it is essential to ensure that external talent meets the required technical and quality standards.
Continuous training and updating. Given the accelerated pace of technological change, it is important that both internal and external staff are up to date with the latest trends and technologies. Companies may need to invest in ongoing training for all parties involved.

Legal implications of the staff augmentation model

In Argentina, the use of staff augmentation has several legal implications that must be considered in order to comply with current regulations. Of course, consulting lawyers specialized in labor law, intellectual property, computer law and commercial law.

1) Classification of the employment relationship. It is essential to ensure that the relationship with external professionals is clearly defined as a service provision contract and not as an employment relationship.

If an employment relationship is established without complying with the formalities, there could be risks of labor claims.

2) Joint liability. In some cases, if a company hires a staff augmentation provider, it could be held jointly liable for the employment and social security obligations of the contracted workers.

Especially if it is determined that a covert employment relationship exists.

3) Clear and specific contracts. Well-written contracts that specify the terms of service, scope of work, and payment terms are essential.

This helps to avoid misunderstandings and potential legal conflicts.

4) Data protection and confidentiality. When working with external personnel, it is important to consider the protection of personal data and the confidentiality of sensitive information.

Contracts must include clauses that protect this information. In addition, regulations such as the Personal data protection law.

5) Intellectual property. It is essential to clearly establish who owns the rights to the work performed by external personnel.

Contracts should include specific clauses on intellectual property, to ensure that the company retains rights to any software, code or product developed.

6) Unfair competition. When hiring outside professionals, there is a risk that they may simultaneously work for competitors or take valuable information with them.

Companies should consider including non-compete and non-solicitation clauses in their contracts.

Staff augmentation permite sumar perfiles con conocimiento técnico avanzado o habilidades poco comunes en el mercado laboral. — Staff augmentation allows you to add profiles with advanced technical knowledge or skills that are uncommon in the labor market.

What is our staff augmentation service like?

In IT Patagonia We take into account each and every one of the aspects we mentioned above, both when making a service proposal and in the process of selecting and incorporating talents.

Based on our experience of more than 30 years in the practice, we provide a comprehensive service where several specific sectors interact:

Talent Attraction
People Business Partners
People Operations
Digital Talent Services.

All this, added to the management of our area of culture Our specialty in training and career planning makes IT Patagonia's staff augmentation service excellent.

Conclusion

The staff augmentation model is becoming more and more popular in the technology industry and in the areas of business systems that manage large volumes of data and transactions.

The flexibility and agility it provides to meet dynamic talent demands reduces hiring times and allows adaptation to specific projects. objective that is achieved without incurring the costs and commitments of a long-term contract.

It also facilitates the integration of new skills and knowledge, and enhances the capacity for innovation and response to the challenges specific to each business.

In times where speed and specialization are key, staff augmentation allows organizations to remain competitive, take advantage of emerging opportunities and respond to market demands.