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Pros & Cons of
Staff Augmentation
Staff augmentation, like any organizational strategy, comes with its own list of pros and cons. It’s up to individual hiring managers and project managers to determine whether staff augmentation is the right model for their specific needs. The following table may provide some guidance

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Pros | Cons |
---|---|
Augmented staff can rapidly understand and contribute value to a project. | Some projects demand a deep level of contextual and institutional knowledge. In such cases, staff augmentation can lead to extended ramp-up periods and increased costs. |
Companies can access specific skill sets for individual projects without the need to hire permanent employees. | Not ideal for long-term projects or skills required on an ongoing basis. For projects lasting more than two years, the risk of augmented staff turnover is higher. |
Helps balance workload fluctuations within an enterprise. For instance, after the 2007-2009 recession, Toyota minimized layoffs by increasing its flexible workforce by 10-20%, creating a buffer for future uncertainties. | Increased reliance on third-party organizations for talent can pose risks to sustainability planning. |
The workforce can be scaled up or down as needed, similar to how retail businesses hire seasonal staff. | |
Staff augmentation serves as a “trial period” for potential full-time hires, allowing the staffing agency to absorb risks related to a possible mishire. |

Types of Staff Augmentation
When considering staff augmentation, it is important to understand the different types:
Category | Description | Examples |
---|---|---|
Commodity | You need reliable workers to perform a task, but they don’t need a specific skillset. | Basic factory or warehouse work, retail, events, and manual labor |
Skill-based | You require certain skills (typing, spreadsheet use, multi-lingual), but the relative level of skill is not critical. | Clerical work, data processing, transcription, basic copywriting |
Highly-Skilled | You require more advanced skills that are only attainable via significant training and experience, and level of skill is important. | Software engineering, contract law, brand design |
Types of Staff Augmentation Services
There are also many different options when it comes to engaging staff augmentation talent. Selecting the right one depends on the specific needs of your organization.
Category | Description | Talent Types | Best For | Strengths | Challenges | Examples |
---|---|---|---|---|---|---|
Traditional Staffing Providers | Traditional providers of temporary labor | Skill-Based, Commodity | Non-critical projects where a high level of skill is not required | Flexibility | Finding highly-skilled talent can be difficult | TEKsystems, Experis, Adecco |
Master Vendor Staffing Providers | Large-scale staffing programs run by a single vendor | Commodity | Highly commoditized labor needs where low cost and scale are most important | Low Cost, Scale | Highly commoditized, talent quality can be inconsistent | Manpower, Kelly, AeroTek, Randstad |
Specialized/Boutique Staffing & Consulting Firms | Smaller firms or agencies that focus on specialized, highly-skilled talent | Skill-Based, Highly-Skilled | When you need specialized skillsets and highly skilled talent | Quality | Generally costly, with high overhead | PointB, Patina Solutions |
Gig Platforms | Online platforms that provide instant access to independent workers | Commodity, Skill-Based | Task-based needs for more commoditized skillsets | Speed, Flexibility | Large marketplaces make it difficult to distinguish between candidates, talent is generally geographically distributed | Upwork, Freelancer.com |
On-Demand Talent Platforms | Online platforms that provide access to curated, highly-skilled talent | Highly-Skilled | Highly-skilled talent deployed quickly | Speed, Flexibility, Quality | Talent is generally geographically distributed (remote) | BTG, Toptal |
Direct Independent Relationships | Independent contractors engaged directly by organizations | Skill-Based, Highly Skilled | Needs that can be filled by known professionals | Quality, Low Overhead | Difficult to find reliable individuals, difficult to maintain an active relationship | TalentNet, Workmarket |
Choosing the Right Staff Augmentation Model
Many organizations use a combination of different providers based on their specific needs. When considering staff augmentation, it’s crucial to define your objectives and identify your top priorities. For instance, if you’re seeking an expert in machine learning—a highly sought-after skill today—focusing primarily on cost may not be practical. Similarly, if you need 100 individuals for a task that can be easily taught, prioritizing a high skill level isn’t necessary. With a variety of staff augmentation models available, it’s important to carefully evaluate the pros and cons of each before making a decision.
Staff Augmentation: A Cross-functional Strategy
Staff augmentation is a powerful strategy that organizations can use to enhance agility and adapt to evolving enterprise needs. This model is increasingly adopted across various industries, covering roles from R&D to Operations, HR, Finance, and beyond (as illustrated in the figure below). Notably, industry leaders like Google have recognized its value, such as through their 2017 acquisition of Kaggle, a freelance and contract network of data scientists. The importance of staff augmentation for enterprises today and in the future is undeniable.Function | Do Not Use Alternative Labor | Use Extensively | Limited/Rare Use |
---|---|---|---|
Supply Chain/Procurement | 62% | 27% | 11% |
Sales | 62% | 26% | 12% |
Finance | 56% | 32% | 13% |
Customer Service | 56% | 27% | 17% |
HR | 56% | 36% | 11% |
Innovation/R&D | 51% | 34% | 15% |
Marketing | 49% | 36% | 15% |
Operations | 42% | 33% | 25% |
IT | 29% | 38% | 33% |
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