Dedicated Resources

5 Factors that Affect the Cost of IT Staff Augmentation

5 Factors that Affect the Cost of IT Staff Augmentation Banner Image

As businesses evolve, they may realize that they need more people with software skills. They may already have a team, but when the workload increases, they want to expand their IT team. They face several challenges in finding and hiring skilled IT professionals. Is there a way for businesses to tap into the benefits of team expansion with skilled professionals without incurring excessive expenses? This is where IT staff augmentation can play a significant role.

Staff augmentation handles increased workloads more efficiently. Staff augmentation enables businesses to add external developers to their team for specific periods. This helps to manage workloads and achieve business goals. Also, organizations can retain project control while leveraging external resources.

Finding and hiring people with specific skill sets is challenging and time-consuming. In software development, waiting to find the right talent can become disastrous if you want to stay ahead of your competitors. Businesses cannot wait for a long time, and they leverage staff augmentation services as an alternative solution.

Hire our Talents | Get our Rate Cards WhatsApp

Why do Companies Leverage Staff Augmentation Services

Hiring a dedicated development team is a win-win for businesses needing specialized IT skills. It gives them access to experts without the long-term commitment of a full-time hire, saving on costs. Additionally, they can easily adjust your team size up or down as project needs change. This flexibility ensures you have the right skills exactly when you need them, eliminating skill gaps and keeping projects on track.

Some important benefits of hiring developers include:

  • Hiring for a specific project avoids the high cost of full-time hires.
  • Scale your team up or down quickly to meet changing project demands.
  • Find specialists with the exact skill sets you need, even for niche technologies.
  • Get projects done on time and within budget with experienced professionals.

When to Utilize Staff Augmentation Services?

Businesses can utilize IT Staff augmentation services in the following scenarios.

Manage inconsistent workloads

Businesses that are operating in seasonal industries or experiencing rapid growth handle varying workloads. Staff augmentation enables them to expand or shrink their workforce as necessary.

Digital transformation

Businesses planning for a digital transformation require specialized IT skills. Staff augmentation allows the hiring of experts without long-term commitments.

Fill critical skill gaps

Businesses can turn to staff augmentation to fill the skill gaps, which is helpful when implementing new technologies or processes.

Short-term project needs

IT staff augmentation enables businesses to complete short-term projects with limited resources by quickly accessing specialized expertise without the need to hire and train full-time employees.

Expand into new markets

In most cases, businesses engage with local talent and expertise. Staff augmentation helps companies operating in the local market to expand their services to countries with different labor laws and regulations.

Five Factors Influencing Staff Augmentation Pricing

Each software project is unique and requires different types of skill requirements. The prices for staff augmentation services also differ, and several factors affect the project’s final price. Following are some of the significant factors:

Skill level and experience

The skill level and experience of the hired developer can affect the price. Professionals with more experience and specialized skill sets will command a higher rate than those with less experience.


Staff augmentation rates are not the same in all countries, and location plays a significant role because the prices are impacted by regional wage rates. They tend to be higher in countries with a high cost of living.


Hiring skilled developers to fill talent gaps in the IT industry tends to be more expensive than hiring in other sectors, like healthcare and hospitality.

Project Scope

The rates charged by IT staff augmentation service providers depend on the complexity and scope of the project. Specialized and in-demand technical skills have higher prices.


Longer-term projects may offer more favorable rates compared to shorter-term engagements, which often have inflated rates. Longer contract periods provide an opportunity to negotiate discounted rates.

Businesses are evolving constantly, and they are trying to find new solutions. They want to attract the best talent pool and offer the best services to their clients. Staff augmentation helps to deal with staffing challenges like finding the right talent and niche-specific skill sets. Service providers allow businesses to hire developers for long or short-term projects on a permanent or temporary basis. Companies that need flexible staffing solutions opt for resource augmentation.

Let us know if you are a business struggling to fill talent gaps to complete software projects. Hire our dedicated developers who can understand your requirements and build solutions that meet your demands. Contact us if you want more details about hiring developers.

Hire our Talents | Get our Rate Cards WhatsApp