There are some IT staff augmentation vendor red flags that you need to look out for before picking the provider. Let’s explore them together, that way you can avoid a bad staff augmentation partner. Check out our red flags & best practices when finding & working with a staffing vendor.
In the fast-paced realm of IT staff augmentation, finding the perfect vendor is paramount to success. As businesses increasingly turn to external expertise to bolster their projects, identifying potential pitfalls and IT staff augmentation vendor red flags early on can mean the difference between a seamless partnership and a costly mistake.
Let’s embark on an exploration of the common yet often overlooked red flags that organizations must be aware of when engaging with IT staff augmentation vendors. Whether you’re a seasoned executive well-acquainted with outsourcing or a newcomer seeking to bolster your IT prowess, understanding these red flags will equip you with the knowledge needed to make informed decisions.
Join us as we uncover the telltale signs of vendor instability, inadequate communication, questionable expertise, and misaligned cultural fit. By recognizing these warning signals early on, you can pave the way for a successful IT staff augmentation partnership that truly elevates your business.
What is an IT staff augmentation vendor?
An IT staff augmentation vendor is a company that specializes in providing temporary IT professionals, such as software developers, engineers, designers, testers, and other technical experts, to client organizations on a contract basis.
This arrangement allows the client organization to augment or supplement their existing IT teams with skilled professionals from the vendor. It is usually based on their specific project or business needs. Moreover, the developers hired from the staff augmentation vendor will typically work under the project management of the company they are temporarily hired by.
Top IT staff augmentation vendor red flags to look out for
Let’s dive into the top 👉 IT staff augmentation service 👈 red flags to look out for and run for the hills when you do encounter them.
Unrealistic cost estimations
If the vendor gives you too high price estimations or too low, then that’s suspicious. When you do your research the pricing should be similar to other quality vendors. There shouldn’t be a huge variation in price. Some scenarios in which you may find lower or more cost-effective prices in the following circumstances:
- Software developers are located outside your country
- You are looking to hire junior developers
Otherwise, if you find a software development team that is underpaid, chances are they are unhappy. The company doesn’t value them. Moreover, if you find that the price is too high, chances are you are not getting your money’s worth. You think you will get more value with a higher price but that may not be true.
Best practices for price estimations on augmented staff
Some best practices to consider when estimating the pricing for augmented staff:
- Research Market Rates: Research industry standards and local market rates for the roles you’re hiring. This will give you a baseline for understanding how much you should expect to pay for the level of expertise you need.
- Consider Experience and Expertise: Price estimates should take into account the experience and expertise of the augmented staff. More skilled professionals may command higher rates, but they could also be more efficient and effective, potentially saving you money in the long run.
- Niche Skills: If your project requires specialized or niche skills, expect to pay a premium for these capabilities.
- Cost vs. Value: Remember that the goal isn’t just to find the lowest price, but to secure augmented staff who can add value and contribute effectively to your project’s success.
Remember that 👉 accurate price estimation 👈 is crucial for a successful project. Investing time and effort in understanding the factors that influence pricing will help you make informed decisions and ensure a positive outcome for your augmented staff engagement.
Poor responsive level from the service provider
Poor communication from the staff augmentation outsourcing partner is a huge problem. There shouldn’t be long periods of no communication. Even with 👉 time zone differences 👈, the response and communication should be like a ping-pong game. There shouldn’t be days, weeks, or months with no communication. This is a bad sign and will lead to complications & delays.
Also, try to find a company that offers a one-person point of contact. You don’t want to constantly re-introduce your story, problem, etc. to a new person every time you contact the vendor. Lastly, you want to agree on one method of communication that will keep things organized. You don’t want some communication via email, then some via phone, and more via a communication channel. You want to be able to find all the info you need easily.
Tips to ensure communication flow with a service provider
When it comes to any form of project outsourcing such as staff augmentation, communication is very important. It is important to establish from the beginning what the communication should look like and how often. Let your service provider know whether you want to communicate weekly, biweekly, or monthly. Also, ensure that you are communicating with the same person. There is nothing worse than constantly being in contact with a different customer service agent.
Moreover, it’s important to figure out what tools to use for communication and management. This can be communication channels such as Slack, email, Google Teams, phone calls, etc. When it comes to managing augmented staff you may consider online tools like Asana, Jira, ClickUp, etc.
Heavy discounts for staff augmentation services
If the vendor offers you discounts right off the bat, this is a huge red flag. There are a few reasons why they may offer heavy discounts for hiring temporary workers such as:
- Their staff is underpaid
- Their services are overpriced & bloated fees
- They have untrustworthy business practices
Don’t let the discounts fool you or entice you. Many times a company that offers discounts may complete your project poorly. This will force you to redo the project and it will be more expensive, than if you want with a slightly more expensive vendor the first time around.
Best practices for discounts & good deals on temporary coders
If a staff augmentation service provider offers you discounts right away for no reason, you should run. Here at Swyply, we provide discounts if you hire two or more developers from us at one time. We don’t give discounts for any reason, or for one developer.
Poor employee rankings
If you check out the employee reviews of the staff augmentation services, and they are poor this isn’t a good sign. Poor employee reviews reflect badly on the company. This means that internally there is something wrong that needs to be addressed.
Best practices to hire happy employees
Review current employees’ reviews on boards like Glassdoor to see how they view their company and employer. You can also contact developers from the internal team to see how they view the company they work for.
High employee turnover
Another major red flag is if the staff augmentation vendor has a 👉 high employee turnover 👈. High employee turnover in the IT industry is a standard. Typically developers don’t like to stay in one position and one company for very long. But still, if there is constant turnover, let’s say every few months someone is leaving, then chances are something is wrong with the company.
Best practices when hiring developers from a staffing vendor
When engaging with a staffing vendor to hire developers, implementing effective strategies can significantly reduce employee turnover and ensure a successful and enduring partnership. First and foremost, it’s essential to establish clear and comprehensive job descriptions that accurately outline the required skills, responsibilities, and project details. A collaborative selection process involving both the hiring company and the staffing vendor will ensure alignment in candidate expectations.
Interview potential developers to ensure they will be the right person for the job. Moreover, assessing candidates not only for technical competence but also for cultural fit within the company can mitigate potential clashes down the line. Transparent communication about the nature of the employment, project duration, and growth opportunities will promote long-term commitment.
Regular check-ins, feedback loops, and mentorship initiatives foster an environment of continuous learning and growth, bolstering employee engagement. Competitive compensation packages that reflect market trends, coupled with appealing benefits, underscore the company’s dedication to its workforce.
Lastly, providing a seamless onboarding experience and integrating staff from the staffing vendor into the broader team can enhance their sense of belonging and ultimately contribute to decreased turnover rates.
Many staff augmentation companies apply the one-size-fits-all solution. They don’t know the specific needs and issues that their customer may have. The vendor may ignore them or be blind to them and therefore provide a box solution for all their customers.
Custom staffing solutions for your software development project
One way to ensure that the staff augmentation company can meet your needs is to check out existing projects they are a part of. If these projects match up with what you are working on they may be able to provide you with a solution that you are looking for.
Hiring technical expertise from a staff augmentation vendor you may run into the problem of no accountability. This can pose significant challenges and drawbacks. Accountability forms the bedrock of any successful collaboration, and its absence can lead to a range of issues. When there is no clear accountability, it becomes difficult to track the progress of projects, allocate responsibilities, and ensure that deadlines are met.
Quality control and adherence to industry standards may suffer as a result, as the lack of defined accountability can lead to a disjointed approach and inadequate oversight. Moreover, without clear accountability mechanisms, communication breakdowns are more likely to occur, leading to misunderstandings and misaligned expectations between the client and the augmented staff.
This can result in wasted resources, missed opportunities, and ultimately, a negative impact on project outcomes. Therefore, a strong emphasis on accountability is essential when engaging with an IT staff augmentation company to ensure effective collaboration, successful project execution, and the achievement of desired results.
How to ensure accountability from augmented staff?
Ensuring accountability from augmented staff necessitates a multifaceted approach. Clear and transparent communication of roles, responsibilities, and expected behaviors is fundamental. Augmented staff should undergo comprehensive onboarding and training. Thus equipping them with the necessary skills to proficiently navigate and collaborate with advanced technologies.
Implementing an ethical framework is crucial. Thus fostering a deep understanding of the potential biases and societal implications associated with their work. Regular performance evaluations can provide valuable insights. Insights into the integration of technology and ethical considerations into their decision-making processes.
By fostering a culture of accountability, where open dialogue is encouraged. Therefore organizations can navigate the complexities of augmented staff and technology. While maintaining a strong commitment to responsible and ethical practices.
Lastly, you should have NDAs and MSA in place, to ensure that the temporary workers you hire do take on some accountability for their actions. Also, it will help keep the vendor accountable as well. Here at 👉 Swyply 👈, we sign NDAs with our customers and our developers. Our developers also, sign NDAs with the customer as well.
Traditional sales pitch
Some business leaders in the staffing industry provide a standardized sales pitch. Many staff augmentation providers tend to ignore the needs & problems of their customers. They take a sales approach that can look a little like:
- Doesn’t show any concern for your business needs
- They are looking to sell their services as opposed to consulting with you and actually helping you
- They steer the conversation to make your results to their benefits
What does a good IT staff augmentation pitch look like?
The IT staff augmentation vendor should first and foremost on your needs. They should emphasize how their solution can fix your problems or meet your needs. The provider should make it clear that they understand your issues. For example, if you struggle with employee retention, they should make it clear that using IT staff augmentation can provide you with developers, that don’t drop out mid-project. Or here at Swyply, we will replace them ASAP if that does happen. This way you don’t end up on thin ice.
TL;DR: Summary of IT staff augmentation vendor red flags
Let’s quickly summarize the top IT staff augmentation vendor red flags you need to be aware of and avoid like the plague. Some of our top red flags you need to avoid when partnering with an IT staff augmentation vendor include:
- Unrealistic cost estimations
- Poor responsive level
- Heavy discounts
- Poor employee rankings
- High employee turnover
- One-size-fits solutions
- No accountability
- Traditional sales pitch
Some best practices include vetting different vendors. Once you narrow down a vendor interview developers to pick the best one for your company. Also, get various cost estimations to make sure that a company isn’t lowballing the costs or overcharging you. Moreover, arrange a communication schedule & policy. Make sure you agree on what form of communication works best for you.
Additionally, make sure that employees review the company positively, as poor reviews may indicate that you want to pick a different vendor. Also, poor reviews may also indicate high employee turnover. A high employee turnover may foreshadow a developer leaving you mid-project. Also, make sure you have contracts in place that will help you keep the vendor accountable. Lastly, make sure that the staffing provider offers you a custom-fit solution, not a traditional one-size-fits-all solution.
Do you want more information about best practices to avoid IT staff augmentation vendor red flags? 👉Drop us a line 👈 and let’s chat. We can offer you a free no-obligation consultation so that you can have the best experience with staffing augmentation.