6 Benefits of Resource Augmentation for Global Companies in 2021

March 15, 2021by rashmita satpathy

What Really is Resource Augmentation?


Resource Augmentation, commonly known as contracting, is when companies hire the extra help they need only for a specific project or a particular period. 


Basically, companies can hire employees on a contract basis without making a permanent commitment to the additional support they hire.


To put it in simple words, resource augmentation is an outsourcing strategy in which the company looks for its weakness in a project and rectifies it by employing an external talent without a permanent hiring procedure.


Augmenting resources can greatly influence the companies and their end-year results. It is no wonder that resource augmentation services have become an essential tool for the corporate giants to the square of their balance sheets.


Let’s See How Resource Augmentation Benefits Global Companies in 2021


resource augmentation


#1: Cost-Effectiveness


Cost-cutting is an important catch for global companies for a positive balance sheet and growth measure. There are two perspectives to look upon this cost-cutting aspect of the resource augmentation model.


As per the research records, it is roughly 40% more economical to hire a contract employee than looking for a permanent appointment. The base salary, benefits, and social security eat a big share in the project development pie. The benefits include living expenses and other allowances, which are comparatively higher in a developed country over a developing country.


There is no more a factor worth considering with resource augmentation in operational costs such as office expenses, electricity, or stationery. This further increases the sum companies could end up saving. This fund can be diver

ted to R&Ds, training, or other projects.


Read: What is Resource Augmentation? A New Way to Extend Your Team


#2: Greater Flexibility


Companies love to expand their horizons. They even take half chances hoping for a chance to convert. This can attract serious threats to their balance sheets.


With resource augmentation mode, companies can bid on projects of different sizes, sectors, and types. This implies that companies don’t have to say a no to any of those inquiries which aren’t their ball game. 

The flexibility and adaptability that these companies get from resource augmentation can help them broaden their service network.


#3: Greater Control

Compared to an outsourcing strategy, companies have the upper hand in the control of a project. They can keep track of the pace and quality at every stage and even on-demand.


Once outsourced, companies lose their monopoly to add or remove resources at any point in time. But in the case of resource augmentation, you are free to do the same but at the risk of privacy and security still under risk.



#4: Quality Talent on Offer

Finding the right quality candidate can prove costly and time-consuming. But augmentation service providers have access to a global pool of resources at their will. 


So, companies have the same access to a set of skill sets they are looking to meet their targets on time.


Also Read: 5 Effective Ways to Get More Out of Resource Augmentation


#5: Hassle-Free Hiring Process


Augmentation doesn’t require any lengthy paperwork and the tedious process of filing and sanctioning. Hence, it is a time-saving process, and companies can concentrate more on the development side than on the hiring process.


#6: Better Productivity

Specialist talents acquired can help companies deliver their projects faster without having an extra burden on the permanent staff.


With their advent in the IT sector, these advantages have made augmentation to spread over sectors. The spread proved worth enough with the balance sheets ending in the green.



Resource Augmentation has evolved a lot since it was first implemented & it is indeed the way forward for global companies in 2021. It guarantees a great deal of flexibility and cost-efficiency for your business. CEPTES holds a decade of experience in Salesforce Staffing Services. Our expert guide provides you competent assistance to fill your company staffing gaps. Contact us to know how we can help. Request a Resource Augmentation contract sample or contact us to see how we can work and get your dream development team.