A Complete Guide to Staff Augmentation for Startups

Updated on Jul 8th, 2022


Businesses, whether it’s a startup or an organization, look for ways to save costs and improve performance. Many choose to outsource or recruit in-house teams to complete their projects.

However, these solutions don’t always deliver the intended results, and not all businesses are capable of doing specific tasks. When this occurs, staff augmentation is a fantastic option.

Staff augmentation is a brilliant way for companies looking to employ excellent talent to help them grow.

But what exactly is staff augmentation? What are the steps in the process?

If you’re looking for an answer to such queries, this blog is for you!

In this blog, we’ll go over all you need to know about staff augmentation and the many ways it can help your startup.

Firstly, let’s talk about,

  • According to Statista, the market for IT outsourcing will reach $ 413.7 billion by the end of 2021.
  • Staff augmentation services can provide flexibility, cost savings, and tight connection with the team, to name a few benefits.

What is Staff Augmentation?

Currently, among the most popular outsourcing methods has been staff augmentation. It allows businesses to engage targeted and efficient tech professionals from all over the world to support their in-house staff temporarily. If one works on a project that necessitates additional talents that aren’t required on a regular basis, this technique is advantageous.

Startups can narrow the gap, reduce time to hire and turnaround times, and gain access to highly skilled software engineers by using staff augmentation. Startups can meet milestones faster and deliver products on schedule by embracing open communication, explicitly defining responsibilities, employing project management tools, and promoting documentation-driven development (DDD).

To implement a staff augmentation approach at your startup, you’ll often contact a staff augmentation provider who can provide you with a competent team that works for the duration of your project. The number of individuals you hire and the duration they work for you will be determined by your requirements.


Why is Staff Augmentation Important for Startups in 2022?

According to Statista, the market for IT outsourcing will reach $ 413.7 billion by the end of 2021. This statistic states how the staff augmentation industry is expected to grow in the next few years.

The most important point for an IT organization to stay competitive in a dynamic environment is staff augmentation. It’s the new buzzword in IT, with companies shifting away from in-house hiring and toward staff augmentation services. You can either hire staff augmentation services to offer you temporary staff or hire staff augmentation companies to assist you with certain projects. In either scenario, it’s critical to ensure that the employees you’re hiring are qualified and experienced in the fields in question.

Overall, staff augmentation is a fantastic method to receive the expertise you need without having to deal with a long relationship.

What Types of Staff Augmentation Services are there?

When it comes to staff augmentation, knowing the various types is essential because it can help you employ depending on the type: –


These employees are hired to do simple tasks such as warehouse jobs or manual labor. They only need to be responsible; they aren't required to have any special abilities.


This implies that the hired personnel have a distinct skill set but are not extremely advanced.

Highly Skilled

Professionals who are extremely qualified and competent and have exceptional talents to take on critical work.

When should a Startup Use Staff Augmentation?

Staff augmentation is an excellent way to boost your efficiency. It is not, however, a one-size-fits-all solution. Staff augmentation is only useful in certain cases. Here are a few examples:

For Short-term Projects Staff augmentation is better suited to short-term projects where you need to finish a particular workload under tight deadlines, start multiple new projects, and your local staff is unavailable for this part of the project.  
Need Special Skills  Even if you only need exclusive skills for a short period of time, staff augmentation is the best solution for your company’s demands.
Want Faster time-to-Market Many companies consider staff augmentation as an effective technique when they need to reduce time-to-market, build an MVP in less time, launch a company, or find a user-oriented solution.

Apart from the above mentioned, some other cases of using staff augmentation services are: – 

  • The company wants to expand the workforce and is concentrating on another part of the project. 
  • The companies are looking for individuals with specialized expertise in a range of areas.
  • The company wants to communicate with the remote personnel on a regular basis.

Now, let’s talk about,


What is the Major Difference between Staff Augmentation and Managed Services?

Staff augmentation, as we already know, entails hiring employees with specific skills for one or more projects. This method offers numerous advantages. Among them are the following:

  • There are no hidden fees 
  • Flexibility to scale up or down team size as per project needs 
  • Higher adaptability 
  • Convenient accessibility to pool of experts 

Staff augmentation, on the other hand, has some major downsides, including high costs owing to increasing rates in the IT industry, the risk of managerial conflicts when internal teammates are used to working at a different pace or structure, and no benefits for other employees because they are unable to learn new skills from temporary hired employees.

Managed services – The practice of outsourcing day-to-day management duties and functions as a strategic technique for enhancing operations and lowering costs is known as managed services. If a business requires long-term external support, managed services rather than staff augmentation is an excellent option.

Managed services offer their own set of advantages and disadvantages. When it comes to advantages, consider the following: 

  • Long-term partnership with the option of receiving additional services and ongoing support 
  • Lower costs as a result of a long-term contract  

The following are some of the drawbacks: 

  • A lack of knowledge 
  • High cost

Top Benefits of Staff Augmentation for Startups

Let’s take a closer look at how startups can benefit from staff augmentation services.



As it has a major impact on the cost of hiring, among the most important benefits of Staff Augmentation is manpower flexibility. A flexible workforce is a group of experts who are engaged temporarily and work for you for a set period of time. Essentially, it refers to a workforce that may expand and contract in response to company needs. Staff augmentation allows you to pick the best personnel based on your continuing project needs, whereas permanent in-house employment may limit your flexibility to harness new talent. Staff augmentation is typically a project-based employment model, so you won’t have the same long-term commitment with these specialists as you would with full-time in-house employees, and there won’t be any other perks, such as insurance or medical coverage. Because staff augmentation only requires a one-time intensive effort to locate a dependable technology partner, it saves you money by avoiding the additional costs of employing, supporting, and sustaining full-time employees while complementing your in-house personnel.

Access to a Much Larger Skilled Workforce

In their daily operations, new businesses make extensive use of modern technologies such as Big Data, Blockchain, Cognitive technologies, and others. As a result, they require professionals who are well-versed in the most recent technological breakthroughs. 

Unfortunately, any business will run into gaps in many areas, and trying to hire expertise from multiple industries might be risky. Staff augmentation companies assist any startup or business in bridging these gaps by providing a team of fundamental experts with specific skills. This is possible because mobile app development businesses’ partnerships identify and hire the best engineers with various skills, ensuring accessibility for a wide range of project development scenarios.

Faster Recruitment

To quickly deliver a sought-after product and ensure its quality, a startup must build a strong team of experts that are well-versed in their field. As a result, the staff augmentation companies assist businesses in hiring trained specialists and ensuring that they are properly employed. Many companies would rather hunt for domain experts who are located far away. People who work from afar have a number of advantages, including worldwide skills, cheaper recruiting rates, and a broad understanding of how to implement IT projects, among others. Staff augmentation allows firms to save time searching for highly qualified professionals while lowering hiring and onboarding costs. Staff augmentation companies that provide staff augmentation offer very talented individuals who can quickly immerse themselves in a development project.

Read More: How can IT Staff Augmentation Help Your Business?


Staff augmentation gives the organization in charge of recruiting the enlarged team complete control. It means that if a startup chooses staff augmentation, the hiring business is in charge of the company’s product development processes, project viability, and outcomes. In a similar manner, the hiring company deals with continuous task cycles and has no outsiders intervening in the job process. This enables firms to gain complete control while maintaining the highest level of openness.

Enhances Operational Efficiency

When businesses grow quickly in the market, they incur a significant operational expense with a lower return on investment. You may locate flexible working platforms for your startups, and they can engage a dedicated crew to help them with their project needs. Additionally, it will save operational costs by making it easier to hire software or other business subject specialists. These can lead to a lot of profits.

Some other benefits of staff augmentation for startups are: – 

  • Saves the company’s time and effort in searching for and hiring new business prospects
  • Keeps costs down on office space, equipment, and taxes, which are all part of running a business
  • From anywhere in the world, you’ll have easy access to the experts 
  • Teams can work across various time zones and locations, making them geographically and time flexible 
  • Access to the top talents and expertise required for the project 
  • There will be no more overheads or concerns with employment 
  • It becomes more enjoyable to meet a project deadline 

Moving forward, let’s talk about,

What should you look for when Hiring and Selecting a Staff Augmentation Company?

The following mentioned are a few tips to assist you to implement the staff augmentation strategy effectively: –


Note your Requirements

It’s critical to know whom to look for when looking for staff augmentation for your startup. Make a list of how many individuals you’ll need for your company, as well as the exact abilities they’ll have. Don’t forget to provide your level of competence and years of experience as well. You’ll also have to figure out how long the job will take to finish and how long you’ll need to keep the employees you hired.

Check Experience

It’s critical to confirm that the vendor has the skills and knowledge you require for your project. You can get a copy of their portfolio to see a few samples of their work.

If you’re looking for a certain skill to complete a particular project, don’t be afraid to inquire about it. This can indeed help you determine whether or not they will indeed be able to gain exactly what you require. You will waste time and resources if you choose the wrong technology partners. You can also search for testimonials of the staff augmentation companies; this will reveal who you’re dealing with and allow you to assess whether the vendor’s professionalism and talents are in line with what your organization requires.

Read More: Major Challenges of IT Staff Augmentation and How to Solve Them?

Check Cost

When it comes to this service, keep in mind that you typically get what you pay for. As a result, going with the simplest alternative is always the best decision. The most expensive solutions, on the other hand, do not always imply the finest service and the cheaper options are not good; you may get poor and delayed services. You will have no problems as long as you thoroughly investigate your possible agency.

Check Communication Channels

Any project’s success depends on effective communication. In terms of both resources and time, miscommunication can lead to costly mistakes. You must ensure that all members of the team, whether internal or external professionals communicate properly.



If you want to lighten your in-house team or start a side project, staff augmentation is a great option. Staff augmentation services can provide flexibility, cost savings, and tight connection with the team, to name a few benefits. Staff augmentation services can be quite beneficial to your startup. One method to ensure that you get the most out of staff augmentation is to hire the right staff augmentation company. 

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