Are you looking to reduce costs while still running a successful tech company? Partnering with an IT staff augmentation company can help you save money in various ways.
Running a business has many costs involved, but not all of them are necessary. You can reduce operational costs, hiring costs, training costs and so much more. Let’s explore how you can save money with IT staff augmentation services.
What do I pay for when hiring temporary programmers using staff augmentation services?
The beauty of using staff augmentation is you have 👉 predictable costs for hiring developers 👈 on a project-by-project basis. Here at Swyply, you are charged a daily rate that is multiplied by the number of days worked for the entire month. At the end of each month, you receive an invoice. You will have 14 days to pay that invoice. That’s it, there are no hidden costs.
When hiring temporary coders you do not need to pay for things such as vacation time, sick leave, etc. Moreover, you do not have to worry about paying employee perks because we will cover that as well.
This hiring process makes it easy for your company to gain the talent you need at a predictable rate. This can 👉 help your project managers stay on budget 👈 while still meeting project requirements. You know for how long you are hiring someone and for how long you need to pay that daily rate. Once the developer leaves your project that cost disappears as well.
How does IT Staff Augmentation helps tech companies save cost?
There are several different ways in which IT staff augmentation can help your tech company save money. Some of these ways include reducing recruitment costs and hiring the right person the first time. Moreover, you can hire developers who work remotely therefore you save on office space costs.
Most augmented staff do not require training or professional development. Additionally, your company can significantly reduce turnover which will also save you a bundle. And so much more, let’s explore it all in more detail below.
No internal recruitment process or outrageous HR fees
All recruitment and selection procedures involve costs, internal and external. 👉 In-house recruitment 👈 costs include posting a job offer, paying salaries, the onboarding process and so much more.
If you decide to use an HR agency to help you find the right software developers, you will pay bloated fees to hire someone who is potentially only looking for a bigger paycheck. An HR company will charge you a one or two-month salary for the developer you are looking to acquire. For example, if the developer you are looking to hire, will make $6000 a month working for you. The HR company may take $6000 to $12000 once they find someone for you.
With staff augmentation services you do not have to cover any costs involved with recruitment. Moreover, you gain developers that are pre-vetted and ready to go. You can hire a software developer in as little as one week, as opposed to 3 to 6 weeks. Moreover, the hiring process via staff augmentation is typically strictly a formality.
Hire the right software developer the first time
Hiring the wrong person could cause a lot of damage and a lack of talent can cause problems. The staff augmentation model provides businesses will ample opportunities for hiring the perfect candidate. This is because you are increasing your talent pool.
And if you work with someone like Swyply, you are gaining pre-vetted developers. We can vouch for these coders that they have the right technical training and soft skills to fit your organization. Our developers go through a rigorous 👉 recruitment process 👈 to ensure they are top-notch professionals.
Don’t need to invest in infrastructure
Most staff augmentation companies will use a remote working strategy which saves their customers money. When hiring a remote augmented team you no longer have to pay for a full-fledged office building. You save money on paying rent.
Moreover, a Swyply remote team is provided with laptops, co-financing for home office furniture, and more. You do not have to cover that cost. Therefore, you can lower operational costs and infrastructure costs.
No training or professional development costs
Another way staff augmentation services can help you reduce costs is you no longer have to 👉 fund training programs 👈 when hiring augmented teams. Augmented teams are experts in their field and are ready to work. They do not need to be taught how to do their job.
The only thing you want to do is provide 👉 virtual onboarding for augmented employees 👈, but after that, they are good to go. Here at Swyply, we offer our remote employees the opportunity to take part in various e-learning courses, professional development workshops, etc. This way our customers do not have to and our developers still have the opportunity to grow.
Keeps turnover rates low
Using third-party service providers to hire coders can help you reduce turnover rates. It is a well-known fact that developers switch companies often as they get easily bored with projects. They don’t want to be limited in their growth. But this can cause problems for software development companies as they are constantly short-staffed. Or they have a rotating door of employees. The cost of hiring, letting someone go or someone leaving can add up if it happens continuously.
Hiring augmented team members can help reduce turnover and 👉 increase developer retention 👈. If you work with Swyply, their main goal is constantly to fill that employee slot. You will be able to hire a developer to work on your project and in the rare scenario they need to leave your project, we will replace them ASAP.
Reduce ongoing operational costs
Unforeseen circumstances may be very damaging to any business, often positive but usually to the detriment of the customer. But businesses that want to adapt will often have advantages when they face sudden change.
In particular, the COVID-19 pandemic forced millions of people into remote work and resulted in a number of benefits. Using a staffing augmentation company can help your firm become more flexible. The regular use of temporary developers can be incorporated into your operations.
Augmented worker systems allow companies to lower their dependence on rigid frameworks. However, they are better able to react when unexpected conditions arise.
Not paying to keep someone on the bench
When your hire a software developer as a permanent full-time employee, you have to pay them regardless if they are working on a project or not. Paying someone who may not necessarily be working can add up. But in some cases letting them go doesn’t make sense, because you may need them in X time.
Staff augmentation services can help you in this situation. You can hire coders from a staff augmentation agency and only pay them when you are actually using their services. Once, the role is done on your project, you can let them go. The staff augmentation company will pay to keep them on the bench.
If you ever require the services of the developer again, you can reach out once more and borrow them yet again. You have more flexibility and you save money.
No taxes or health insurance burden
A big part of monthly expenses in every company is taxes and health insurance. When you use staff augmentation services you do not have to worry about covering those costs for augmented staff.
The staff augmentation vendor will cover taxes, health insurance, sick leave, and vacation time. You don’t have to burden your company budget with such costs.
Summary of how augmented staff can reduce company costs
Staff augmentation is a cost-effective way of reducing costs in any business. It helps bridge the skill gap and allows companies to hire temporary programmers for specific tasks.
Using a staff augmentation service, businesses can reduce their operational costs while still having access to highly skilled workers when needed. This is especially beneficial for companies that may not have the resources to hire full-time staff with specific skill sets.
Let’s run through the numerous ways in which hiring augmented staff can save money for small, medium, and large tech companies. Some of these ways include:
- No internal recruitment process or outrageous HR fees
- Hire the right software developer the first time
- Don’t need to invest in infrastructure
- No training or professional development costs
- Keeps turnover rates low
- Reduce ongoing operational costs
- Not paying to keep someone on the bench
- No taxes or health insurance burden
If you want to save money using IT staff augmentation services, 👉 drop us a line 👈, and let’s chat. We can have a free no-obligation consultation to see if an extended team is the right solution for your tech firm.