Staffing Agencies vs. Staff Augmentation

India's staffing and staff augmentation industry is growing exponentially, and flexible workforce solutions are the driving factor. The market has a worth of nearly $6 billion. If this isn't impressive enough, an annual growth rate of 15-20% is expected.

The IT sector is the main contributor, accelerating staff augmentation demand by 60%, and focus is still emerging around skills related to artificial intelligence, blockchain, and cybersecurity​.

The staffing economy in India is also growing at a rapid rate, with an estimated 15 million workers ready to work, many of whom are engaged through staff augmentation models or staffing agencies.

Globally, the staffing market is projected to grow by 5.2% Y-o-Y, with temporary staffing making up over 90% of the global market. 

These trends clearly display the potential and how India's staffing sector is poised for immense growth. 

Firms throughout all industries in India face an uphill battle when scaling, addressing skill gaps, and building a long-term workforce. To tackle this issue, they have two main options available to them. These are staffing agencies or augmentation models. 

This article will help you pick the option that suits your business, projects, and market.

What is a Staffing Agency?

These agencies are recruitment service providers that recruit and place candidates for clients. They deal in temporary, permanent, or contract staff and handle the recruitment process. 

They take the time to perform their tasks, from screening to onboarding. The highlight of these firms is their ability to save a company's time and resources while lowering costs and attrition rates.

Pros of Choosing a Staffing Agency

• Their expert process leads to cost savings for clients.
• Recruitment agencies like these can attract talent from across industries and throughout the country.
• You get the opportunity to outsource compliance and third-party payroll.
• Internal staff have more time for other activities when partnering with hiring firms.

Companies can get top-rated staffing services by partnering with the top staffing companies in India.

What is Staff Augmentation?

It is more of a recruitment model than anything else. The companies will hire skilled talent to work alongside their current in-house workforce. 

Staff augmentation doesn't involve direct placement from a hiring firm. The company controls the hiring flow and manages the onboarded candidates.

The highlight of this option is keeping hiring and project control while paying attention to skill gaps. These skilled hires are paid hourly wages or based on their skills and how rare they are to find.

Pros of Choosing Staffing Augmentation

• Companies have the right and control over the hiring process, which gives them more freedom.
• They can look within the company to see what skills are missing and hire based on them.
• The staff hired through this staff augmentation model are short-term hires, and this eliminates long-term costs.
• Companies can choose the contract length and make the clauses based on their project needs.
• This hiring model differs from a temporary staffing agency, which focuses on duration and costs instead of skills.

Core Differences Between Staffing Agencies and Staff Augmentation

Do you want to tell which is better or how they differ? Our table will make that vision possible.

The above table clears up any doubts you have about either or both recruitment agencies and augmentation models.

Choosing What's Ideal for Your Business

Understandably, you can become confused about which is better for your business. You can decide when you have all the details and insights of the two.

Choose a Staffing Agency When:

• Staffing agencies can help if you require quick and bulk hiring to fill several vacancies.
• Your company needs a combination of part-time, contractual, and permanent staff.  
• There is a need for relief from the burden of compliance and payroll services.
• Your company is looking to free up time and become more cost-efficient.

Choose Staffing Augmentation When:

• If you need a skill for a project and then don't need it afterwards, this option is perfect for your business.
• The company requires seasoned experts to work alongside internal team members.
• It will give you the option to hire for industry-specific positions like IT or related fields.
• You want to reduce costs and keep it to an hourly charge directly to the candidate.
• Knowing all these facts, you can decide between expert agencies and the staff augmentation model. 

Despite staff augmentation being perfect for finding temporary specialised skills, it does come with some challenges. This hiring model still requires oversight from the company or a staffing agency. 

Handling staffing augmentation processes will require expertise and staffing agencies are experts. This makes it even more appealing to hire a staffing agency and let them handle the process from start to finish. 

Conclusion

Now that you know what is staff augmentation, its benefits, and what it can offer your business, you can decide. Expert hiring agencies are complete hiring solutions that take control of the whole process from end to end and provide professional people management solutions. Meanwhile, augmentation gives companies leeway to find a rare skill.

Understanding your company's requirements helps you align the hiring option with it. You must take your time to make the right decision, as it's essential.

If you are ready to transform your workforce and hiring process using a staffing agency or staff augmentation, contact us to work with the best staffing agency in India. 

FAQs

What's the core difference between staffing agencies and staff augmentation?

These two options can be separated based on the control and focus on skills or contract length. Expert hiring companies control the candidates when they are sourcing them, which isn't the case with augmentation. 

How do I know if staff augmentation is perfect for my business?

When skills are required only to complete a current project and not afterwards, staff augmentation is right for your business. Also, if you want more control and leeway, this will give it to you.

Can a staffing agency help with IT-specific roles or blue-collar staff?

Yes, most recruitment agencies can help with IT-specific roles. Some specialise in blue-collar employees and can source staff quickly! Before picking a partner, ask the agency if they cater to IT or blue-collar staffing needs.

Which option offers my company more cost savings without compromising employee quality?

While both will give you access to good talent, staffing companies are more cost-efficient. If you look at the bigger picture, they can save time, lower workload, and reduce stress. These help companies cope and lead to higher and better output.

Is there any risk in using staff augmentation?

There's a chance you cannot find the right skill in time, leading to losses. It isn't possible if you partner with a staffing agency, as they have a sizable network to choose an employee. So, there is a risk, but you shouldn't decide on it alone.