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Are you satisfied with how your in-house teams handle your front- and back-office functions? Or do you wish your operations were a bit more cost-effective and scalable?
If you want to grow your company without overspending and compromising output quality, business process outsourcing (BPO) can help you achieve that goal. This strategic approach provides access to skilled employees and advanced tools at competitive pricing.
BPO also comes in handy when you need more workers for a specific project, as providers can offer an experienced and augmented workforce.
Keep reading to better understand BPO staff augmentation and its various models!
Different BPO staff augmentation models to choose from
According to Wiley’s 2023 study, nearly two-thirds of organizations would upskill or reskill their existing workers if they encountered skill gaps. However, 40% lack the skills enhancement programs or the resources to implement them. Hence, a few of them outsource or hire temporary workers.
Staff augmentation is an outsourcing model that provides temporary workers to fill your critical projects’ skill gaps. Unlike a BPO contract, this practice is often adopted for short-term initiatives such as software development, events management, and research. It lets businesses access specialized skills and achieve flexibility while cutting expenses.
Because of these advantages, Verified Market Research expects the global temporary labor market to expand at a compound annual growth rate (CAGR) of 6.4% by 2031. The organization also anticipates the sector to reach approximately $537.4 billion in revenue in 2024.
Despite such benefits, you must know the different BPO staff augmentation models before incorporating them into your operations. Doing so allows you to plan your investment well and avoid interruptions.
The four main staff augmentation models are project-based, skill-based, remote, and managed. The tables below explain the distinct types of staff augmentation, their pros and cons, and some example use cases.
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| Remote staff augmentation | |
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The importance of understanding each staff augmentation model
Noting the different types of BPO staff augmentation models helps you make informed decisions for your temporary projects and ensures scalable and cost-effective operations. It assists you in developing a well-structured plan that matches your business goals and budget allocations.
Ultimately, understanding each model lets you weigh the unique benefits of staff augmentation against possible drawbacks. It ensures returns on your outsourcing investment. Here are the other reasons why you should be familiar with those categories:
- Various projects require different staffing approaches. Knowing every BPO staff augmentation model allows you to select the most suitable option that meets your objectives, funds, and project requirements.
- Staff augmentation models offer unique advantages and trade-offs. Dissecting every framework’s strengths and weaknesses guides you in drafting and implementing BPO staffing strategies to achieve high-quality outcomes.
- Every category comes with its own set of challenges. Identifying potential issues beforehand lets you create and implement risk management strategies. It helps mitigate possible disruptions and ensure project success.
- Staff augmentation has significant cost implications for businesses. Analyzing each model’s cost structure enables you to address budgetary constraints and align financial objectives.
- Staff augmentation is covered by a complex regulatory landscape. Because you and your BPO partner technically employ the workers, you still need to comply with labor laws and compliance requirements locally and internationally. Violating any employment rule leads to costly fines and project delays.
How to select the best staff augmentation model
After knowing what BPO staff augmentation models are, it’s time to choose the one that suits your company. Whether hiring freelancers or BPO workers, selecting the best approach helps you maximize the advantages and minimize the disadvantages of an augmented workforce.
Implement the following practices to find the best model for your needs:
- Assess your project needs and staffing objectives. Consider factors such as scope, timeline, budget, and needed expertise.
- Evaluate cost considerations. When picking a staff augmentation model, note your budgetary capacity and constraints. Examine each category’s pricing structures, payment options, and potential cost savings.
- Study risk factors linked to each staff augmentation model. Cybercrime damage is expected to cost $9.5 trillion globally in 2024. Thus, businesses must understand and identify risk factors—such as quality control issues, compliance concerns, and security challenges—to develop appropriate mitigation strategies and avoid expensive losses.
- Consider cultural and communication factors during decision-making. This step is especially important when hiring third-party personnel overseas. Evaluate language proficiency, cultural compatibility, time zone differences, and communication preferences to ensure smooth collaboration.
- Ensure the chosen model matches your business strategy. Make decisions based on priorities, organizational culture, and core competencies.
- Seek input from key stakeholders in the decision-making process. Include project managers, department heads, HR professionals, and external advisors in your meetings. Ask for their insights to ensure the selected staff augmentation model satisfies project needs and expectations.
- Validate third-party capabilities, service offerings, and reputation. Hire contractors according to their industry experience, domain expertise, and technical proficiency. Client reviews and referrals should also be noted when evaluating providers.
- Conduct a pilot test or proof of concept if necessary and possible. A pilot test helps you gauge the chosen staff augmentation model’s effectiveness and suitability before fully committing. It assists in determining potential issues, verifying assumptions, and making needed adjustments.
- Continuously monitor and evaluate augmented staff’s performance. The action highlights how third-party personnel accomplish tasks and deliver desired outcomes. Moreover, it pinpoints areas for improvement and addresses any issues before they escalate.
In addition to these best practices, ask your executives and important project members these questions as you select the suitable staff augmentation model:
- What specific projects or business functions require third-party support?
- What are the skills needed to complete the work quickly and effectively?
- How long does the effort last?
- How much can you allocate to hire temporary workers?
- How much control do you want to possess when handling augmented employees?
The bottom line
Delving into the BPO staff augmentation models reveals diverse options to optimize third-party skills and resources cost-efficiently. Each category offers unique benefits to accommodate your changing project requirements, organizational goals, and budget constraints.
From project-based to managed services, staff augmentation allows your business to select the best way to achieve quality output without overspending. However, choosing the most suitable model requires careful assessment, planning, and execution to ensure successful project outcomes.
Let’s connect to boost your short-term initiatives. Unity Communications houses skilled employees and advanced tools to temporarily assist you in achieving your business targets and project milestones.
