With staff augmentation services gaining popularity, businesses are eager to use the services and reduce hiring costs without compromising quality or results. Here, we’ll discuss the steps to estimate staff augmentation cost and how to use DataToBiz staff augmentation estimator tool plus the factors that influence the price.
IT & Data Engineering Staff augmentation is a popular business strategy to expand the internal workforce quickly and efficiently by bringing in an experienced team of experts. Instead of going through the lengthy recruiting process, you can contact a staff augmentation company with your requirements and hire candidates in less than a week. The team will start working as soon as possible and will stay with your business as per the terms of the contract. You can let them go after the project ends or replace them with other candidates midway through if the results are not satisfactory.
A report shows that the staff augmentation market was $460.9 billion in 2023 and is expected to grow at a CAGR (compound annual growth rate) of 4.5% by 2028. Many organizations are relying on staff augmentation rather than full-scale hiring every time as it is a cost-effective and flexible solution. However, you will still need to consider the costs of staff augmentation and how it can affect your budget.
So how do you estimate staff augmentation cost? Is there a tool for it? Which tool do you use, and how does it work? How do staff augmentation companies calculate the costs of the service? Let’s find out in this blog.
Team augmentation services don’t have fixed pricing. This makes it easier for service providers and businesses to create staff augmentation teams of varied sizes, expertise, skills, talents, etc., for any duration. Service providers like DataToBiz have developed a simple yet effective online estimator tool to calculate the cost of staff augmentation services. The company offers onshore, nearshore, and offshore staff augmentation services with flexible and transparent pricing models.
Let’s look at how you can use the estimator tool on their website.
Visit the Staff Augmentation Estimator Tool on DataToBiz and follow the below steps:
Start by choosing the type of experts you want to include in your business. Pick individual options from the same drop-down to create a team. For example, you can select a Power BI developer, Azure data engineer, LLM engineer, data architect, and deep learning engineer to form a team of five.
The seniority levels are varied and have options for entry-level, mid-level, and high-level, along with a ‘not sure’ choice. This last option is helpful when you are not sure about what level of expertise is necessary for the project.
In the duration field, the options range from three months to more than three years (with an internal time scale like 3-6 months, 6-9 months, etc.). This helps to estimate staff augmentation cost for the duration of the project.
Next, you select the number of candidates required for the role. Larger projects need more than one person for the same role. Here, the options range from one to over 5. You can build a team of any size and get an accurate estimate of the staff augmentation pricing model using this tool.
Once you select all the necessary fields, submit the details to the company. Simply enter your name, email address, and mobile number. Submit the request to get a detailed estimate delivered to your inbox. The response will be accurate and quick. You can schedule a call with the experts to discuss further details and build a team as per your requirements.
Why should you calculate expertise cost before finalizing staff augmentation services from a provider? There are many reasons to do this.
You can know how much the project will cost and prepare your budget accordingly. If it is a third-party project, you can negotiate the rate with your clients to ensure profits. Moreover, you can compare the estimates from different service providers and make the right decision. Do remember to check for qualifications, expertise, and testimonials as well.
Staffing cost varies by a wide margin and depends on several factors. The rough price plans are samples subject to change based on your requirements. By using an estimator tool, you will get a customized cost for your project. There will be less ambiguity or fewer chances of additional/ hidden costs disturbing your budget.
When you estimate staff augmentation costs in advance, there will be greater flexibility in building a team of experts that align with your budget and project specifications. You can get quotes with varying requirements to get a better idea about how to adjust the team without exceeding the budget.
Skills related to advanced technology can be more expensive compared to standard engineers or developers as there will be fewer people with the required knowledge and experience.
The cost of living and minimum wage rates are different from one country to another. Even within the same region, the rates may vary due to local factors. Aspects like cultural differences and communication constraints are also considered to estimate staff augmentation costs.
Short-term projects will have lower costs while long-term projects can be expensive. However, it is not always straightforward. Short-term and ad hoc projects can be costly if difficulties arise midway and cause unexpected delays. For long-term projects, businesses can save money through extended hiring instead of the pay-per-hour model.
The demand vs. supply ratio will be a crucial factor in any pricing. Staff augmentation is no exception to this. For example, you may need to spend more to hire data scientists with over five years of experience as there is less supply and more demand for them.
While everyone promises quality, only some service providers deliver it consistently. Understand what it takes to hire an experienced external staff that can work on any kind of project for your business. Companies that accept feedback and offer long-term maintenance are more reliable.
Overhead costs are indirect expenses that service providers and clients have to include when budgeting. For resource augmentation services, these include the cost of screening and selecting experts, conducting interviews, evaluating each candidate, forming a team, onboarding, etc.
The management fee is applicable for long-term projects where the project manager belongs to the staff augmentation service provider. The manager oversees the details and is the first point of contact for the team and clients.
If you want reliable and experienced IT staff augmentation services, look no further than DataToBiz. The company offers onshore, near-shore, and offshore staff augmentation and resource augmentation services for cost-effective prices. It has a presence in many countries like India, the US, the UK, Australia, South Africa, UAE, etc.
Estimate staff augmentation cost using the innovative calculator on the company website to get an accurate and detailed quote from the business. Take advantage of staff augmentation services to achieve your business goals and become successful in the global market.
The staff augmentation price estimator is an online tool to quickly and accurately estimate staff augmentation cost based on your input requirements. It gives you more details and a clearer picture of things even before you start the project.
An IT staffing cost estimator or calculator is a tool to get a quote for staff augmentation services from a company. For example, if you want to hire Python developers, data analysts, and data engineers to build a team of six people, you can use the cost calculator to know how much it will cost based on your specifications (expertise, duration, etc.).
DataToBiz price estimator is a comprehensive yet straightforward tool designed to help businesses build a team of experts in a short time, that too by considering their budgets. The tool is user-friendly and transparent.
A staff augmentation contract or contract staffing is an agreement between the service provider and client (business) detailing the number of experts hired, their experience, the duration of the project, the pricing agreed upon, and other information. The contracts vastly vary and can be classified as the following:
The type of staff augmentation contract used will depend on the industry and business requirements.
The staff augmentation process can be broadly presented as follows, though it changes from one service provider to another.
Many staff augmentation companies allow businesses to replace one or more of the team members if the results are not satisfactory.
According to Markets and Markets, the global human augmentation market was $253.6 billion in 2023 and is expected to reach $545.1 billion by 2028 at a CAGR of 16.5. As per Market Growth Reports, the IT staff augmentation market is expected to be $147.2 billion by 2028.
Staff augmentation is a method to quickly hire an external team of experts to work on short-term and long-term projects in a business. Here, the service provider will supply a team based on your project needs. The teams can work remotely or in-house and collaborate with your existing employees.
T&M stands for time and material. It is a contract-based method to outsource a project to a service provider. Time and materials are the two main metrics used for calculating the price while the staff augmentation estimate includes more factors. T&M is beneficial when the projects are complex, large, and vague.
Generally speaking, the staff augmentation rates can be anywhere from $15 to $300 or more per hour. The average rate, however, falls between $25 and $49 per hour. The rates for staff augmentation are highly varied. For example, the staff augmentation in India cost will be different from the rates used in the US or the UK. Similarly, the rates increase or decrease based on expertise, duration, project details, industry requirements, etc.
Fact checked by –
Akansha Rani ~ Content Creator & Copy Writer
They have the experience and agility to understand what’s possible and deliver to our expectations.
