Staff Augmentation in Comparison to Outsourcing | Punnaka

Reasons for the upper edge of the staff augmentation model in comparison to other hiring models 

Given a large number of applicants and the limited number of filters to shortlist them, finding a way to bridge the gap between the right candidate and the correct position is one of the most challenging tasks of our time.

Companies have wasted millions of dollars on inappropriate staffing, due to which the turnover is impacted, and there is no upsurge in profit. 

In the last few years, with the change in technology and business models, both in the west and the east, business owners have needed to hire staff temporarily.

Generally, such staffing aims to complete a specific project, after which the contract is terminated. In this blog, we will learn about staff augmentation and other hiring models used today by companies worldwide.

Also, we will give details on hire offshore developers.


What is staff augmentation? 

As the term indicates, it is utilized to augment or expand the number of staff members.

Staff augmentation is a hiring strategy that involves outsourcing and is utilized to hire employees temporarily.

The Contingency Hiring Model incorporates this concept as an internal component.


Other Hiring Models

● Retained Search 

The purpose of a retained search is typically to fill executive responsibilities within an organization, such as sales head, chief executive officer, marketing manager, etc. This strategy calls for targeted investigation and a substantial amount of time.


● Exclusive Recruitment 

An agreement is signed between the client and recruiter for several exclusive recruitments.

A particular period is discussed and agreed upon by the two parties beforehand; in the event of its non-fulfillment, the recruiter can also be penalized by the client if already mentioned in the contract. The client can offer the opportunity to other recruiters too. 


● Recruitment Process Outsourcing (RPO) 

These days, the Recruitment Process Outsourcing model is in high demand.

In this, an external body works to recruit the internal body. While handing over the entire recruitment process to an external body, the company utilizes the time and energy in its internal works. 

In this situation, the RPO associate is solely liable for everything, including procurement, timetabling, screening procedures, joining offer negotiations, and closing out all requirements.

The fact that the business does not have to manage its own requirements team is an additional benefit that results in significant cost savings for the company.

On the other hand, if an external service provider is unfamiliar with the company's values and recruitment strategies, this could place the business in a precarious position and expose it to a high level of risk.

Because of this, businesses need to exercise extreme caution when selecting a recruitment associate.


● Outplacement 

The concept of outplacement first emerged during the economic downturn.

Here, a business that needs to reduce its expenses by laying off some of its employees can hire a specialist to find new jobs for those workers at other businesses.

The present employer is responsible for paying any costs associated with the recruitment process.

To this day, outplacement has not garnered much attention.


● Contingency Hiring 

One of the recruitment methods that is utilized most frequently is called contingent hiring.

The success of this strategy is predicated on establishing specific terms and conditions with clients and providing employees to businesses on an as-needed basis.

It includes a continuous recruitment and placement activity directed toward the client business.

Candidates who adhere to the guidelines laid out in this recruitment strategy will not be required to make any payments to the recruiter.

Here, the businesses that have previously contacted contingent recruiters to follow the contingent recruitment model for their hiring process will be required to pay the fee (to the contingent recruiter) to receive an appropriate applicant.

The contingency recruiter may also use a variety of tests to find the right candidate for the open position, depending on the particular hiring requirements of the business.

In addition, these contingent recruiters maintain a database of potential candidates to have sufficient assistance when selecting a candidate for their client.

This particular model of recruitment places a significant emphasis on a network of IT professionals and an extensive database to locate suitable applicants.


Why should you employ the Staff Augmentation model? 

● Cost cutting 

If you only require someone's services for a few weeks or months, it is doubtful that it will be cost-effective to employ them permanently.

Even just one full-time employee will result in significant financial outlays on your part due to the associated wages, benefits, and taxes.

With augmented staffing, you can contact a professional only when you need their services, avoiding costly long-term commitments. The new Affordable Care Act makes employing full-time staff more difficult and expensive.

An augmented staffing service can help you circumvent the restrictive regulations of the ACA as well as the costly health insurance fees it imposes.

Our Staff Augmentation Company in the USA is helping many leading companies reduce their cost and focus on more important goals of their projects. 


● Selection of skills 

Regardless of whether you need assistance with a specific project or for your overall company, focusing on the required competencies enables you to get productive employees in place as soon as possible and at a manageable cost.

You won't have to employ just one person and then cross your fingers and hope that they have the appropriate expertise for the job; instead, you'll be able to select and choose the right person with the precise skill set you require.


● Get to work with experienced professionals

Adding highly trained professionals currently at the pinnacle of their professions to your existing staff gives you the confidence to delegate jobs and responsibilities.

Mid-career professionals with experience are not considered temporary workers or trainees and therefore do not require as much instruction or assistance.

Merely delegate projects and responsibilities to an additional staff member or team as required, and they can produce the results you require in the allotted amount of time.

A seasoned expert contributes his own extensive set of skills to your project, clearing up your schedule and enabling you to concentrate on the bigger picture.


● Unbiased expectations from the employee 

You can gain an impartial view and a new perspective on how things are progressing when you hire a staff member for a short-term position at your business or on a project you are working on.

An outsider who comes in briefly is much less likely to get involved in office politics and disputes. Additionally, this individual will not have any pre-existing allegiance to one in-office group or another.



For more information on the staff augmentation process and its benefits, you can send us an email at [email protected] 

We are a leading Staff Augmentation Company in the USA with over 17 years of experience in offshore staffing. 

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