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The Digital Age: Why IT Resource Augmentation is Critical for Business Success

The world has entered a new era—the digital age. Technology now plays a pivotal role in how businesses operate, engage with customers, and deliver products and services. Companies that fail to effectively leverage technology risk falling behind the competition and losing relevance in a rapidly evolving marketplace.

This new digital landscape presents both opportunities and challenges. On one hand, technology enables businesses to work smarter, faster, and reach wider audiences. AI, automation, cloud computing, and other innovations open new possibilities. However, transforming business operations to fully capitalize on these technologies requires specialized expertise and resources. This is where IT augmentation services come in.

What is IT Augmentation?

IT augmentation refers to partnering with an external service provider to supplement a company’s technology talent, skills, and solutions. Rather than attempting to hire, train and retain technical specialists across every area, businesses can fill resource gaps as needed through augmentation.

The IT augmentation provider supplies professionals with specific skillsets to support projects and initiatives on-demand. For example, a firm may lack in-house data scientists to develop predictive analytics capabilities. Via augmentation, data experts with the latest methods and tools can integrate within project teams during implementation phases.

There are several compelling reasons why IT augmentation has become a go-to strategy:

Cost Savings – Augmentation alleviates the high payrolls and overhead of full-time tech hires. Businesses mitigate ongoing salary, benefits, training and other employee costs by only paying for tactical support.

Specialized Skills – Leading augmentation firms vet professionals according to the most in-demand development languages, cloud platforms, cybersecurity tools and more. This gives access to elite talent difficult to find and retain internally.

Flexibility & Scalability – Augmentation resources can scale up and down as initiatives evolve. The approach brings an on-demand employment model aligning labor costs with changing technical and business needs.

Latest Tech Exposure – Augmented talent stay current by servicing different clients. Companies can leverage this experience to receive guidance implementing the latest tech tools and methodologies.

Focus on Core Competencies – Freeing internal staff to focus on core functions rather than stretching thin across IT adoption activities boosts productivity and innovation.

How does IT augmentation ultimately provide advantages over handling all technology capabilities in-house? Consider the following risks of managing tech entirely through internal hires…

The Risks of DIY Technology Resourcing

While self-sufficiency seems ideal from cost and control perspectives, the complexities of digital transformation expose companies attempting do-it-yourself IT resourcing to major disadvantages:

• Costly Recruiting/Turnover – Attracting and retaining top tech talent necessitates high salaries and robust professional development. Even then, employee churn leads to perpetual recruiting/onboarding expenses.

• Fixed Payrolls – Carrying full-time technical staff during non-project periods means wasted payroll dollars. Businesses pay for talent regardless of utilization.

• Deep Expertise Gaps – Few firms can hire specialists across the range of technologies now essential to compete – AI, IoT, advanced analytics, etc. Critical capability gaps open.

• Staff Burnout – Leaning on existing employees to handle adoption initiatives on top of normal roles leads to burnout, eroding culture and extending timelines.

• Focus Dilution – Technology management detracts from more impactful responsibilities for sales, marketing, product and other critical internal departments.

The risks and costs soon outweigh potential benefits for enterprises managing all technology capabilities in-house. IT augmentation provides welcome relief.

Where Companies Are Investing Tech Resources

IT budgets continue growing year over year, now averaging over 5% of company revenues, with over half dedicated to new initiatives rather than mere operations and maintenance.

The following chart based on recent Harvey Nash/KPMG CIO surveys highlights where most IT resources are focused:

Yet despite massive spending, most organizations still lack specialized skills around cloud, analytics, automation and other key technologies shaping modern digital experiences. Partnering with IT augmentation providers helps direct budgets into closing today’s widest competency gaps.

Top 5 IT Augmentation Service Areas

The range of technical specialties available through IT augmentation today spans far and wide. Still, a few critical capability areas rank among the most commonly augmented:

1. Software Development

From mobile apps to cloud-native programs and embedded software, developing reliable, high-performing software underpins digital initiatives. Augmenting development teams makes perfect economic sense. Enterprises avoid expensive hiring/retention costs for programmers while gaining specialty skills exactly when needed.

Plus, augmented coders integrate with internal staff to share methodologies and innovations. Companies create software faster and at lower overall risk through combined in-house/outsourced coder teams.

2. Cloud Management

Migrating infrastructure, applications and data to the cloud unlocks flexibility, cost efficiencies and performance at scale. Yet, executing even straightforward cloud projects requires niche expertise around leading platforms like AWS and Microsoft Azure.

Augmented cloud architects, engineers and developers allow companies to adopt cloud-first approaches without recruiting and retaining specialized staff long-term. The right augmentation partner also provides managed services to oversee cloud solutions post-implementation.

3. Data Analytics & AI

Advanced data analytics and AI drive personalization, predictive experiences and automation for digital leaders. But without data scientists and machine learning engineers, most companies struggle turning vast data resources into actionable insights impacting customers and operations.

IT augmentation delivers data experts to build modern data lakes, pipelines and AI models – capabilities otherwise out of operational reach. Through analytics augmentation, every business gains a path to data-driven digital transformation.

4. Cybersecurity Services

In an era where cyber attacks threaten operations and reputations daily, comprehensive security strategies are no longer optional. However, deploying layered defenses – endpoint detection, firewalls, access controls, VPN, etc. – challenges even large security teams.

Augmenting with specialty cybersecurity professionals enables continuous protection. Leading IT augmentation providers offer fully managed security solutions combining staff and technologies to safeguard systems and data. Defense against crippling cyber events becomes a reliable service rather than constant distress.

5. Legacy Modernization

Core legacy systems built around ERP, CRM and custom apps remain vital to companies. Yet, integrating and extracting value from legacy investments requires specialized modernization skills as cutting-edge capabilities are deployed.

Through augmentation, legacy systems experts architect roadmaps to:

• Inject new analytics, AI and automation around legacy
• Migrate apps to cloud for performance/cost optimizations
• Build APIs to connect legacy with modern interfaces and mobile apps
• Perform critical upgrades before deprecation of longtime underlying tools

This prevents legacy from becoming “technical debt” unable to support digital capabilities and channels. Augmented talent drives legacy modernization at exactly the right pace for business priorities.

Realistic Expectations with IT Augmentation Partners

Seeking IT augmentation serves as a savvy strategy for enterprises lacking specialized technical skills and resources to fulfill digital ambitions. However, best tapping augmentation’s advantages requires understanding realistic outcomes based on the provider-customer fit.

When partnered with the right augmentation firm offering rigorously vetted talent, specialized expertise unavailable internally, and managed services, companies can expect:

• 30-50% lower project costs than staff hiring
• 55%+ faster app/solution delivery velocity
• 75-85% reduction in deployment risks
• Flexible scaling up/down to meet digital demands
• Frees internal staff to drive innovation and other critical efforts

However, cost structures and service capabilities vary enormously among augmentation companies. The level of talent professionalism, technical breadth/depth, and integration support end up largely determining ROI. Companies must assess partners thoroughly.

Additionally, effective augmentation relationships entail give-and-take. Internal staff ready to collaborate alongside augmented technical specialists see the greatest knowledge transfer and digital transformation success.

So rather than a hand-off of tech problems to externals, view relationships as integrated, flexible teams pushing the business where it could not thrive alone. Both sides better the other.

Documented Returns from Augmentation

Industry research and client results back up augmentation ROI claims:

• 75% Higher Productivity – Everest Group found augmented teams deliver features and services 75% more productively than traditional resourcing
• 160% Faster Delivery – Enterprises augmenting software development cut delivery times from months to weeks according to Gartner
• Over 50% Cost Savings – Augmented cloud migrations cost 53% less compared to using a traditional professional services firm or attempting purely in-house

These gains directly translate to saved budgets, faster time-to-value, and lower opportunity costs from alleviating project delays.

Evaluating Augmentation ROI

When managed well, IT augmentation delivers manifold returns across critical digital transformation investment areas:

Talent & Expertise Gains

Specialists bridging competency gaps > knowledge sharing > upskilled internal teams

Project Velocity Increases

Expert skills applied > faster completions > accelerated benefits realization

Risk Mitigations

Proven solutions > fewer disruptions > reductions to timelines/budgets

Focus & Productivity Boosts

Internal staff redirected from tech to core roles > improve employee satisfaction, retention and innovation

Yet augmentation ROI depends wholly on choosing augmentation partners able to consistently deliver quality talent and services. Evaluating providers based on ability to positively influence the above return factors is key.

Additionally, marrying augmented capabilities directly to measurable operational metrics best demonstrates ROI. Examples may include:

• eCommerce revenue lifts after personalization powered by an augmented data science team
• Customer satisfaction improvements enabled by rapid app modernization from augmented programmers
• Cyber risk reduction through 24/7 threat monitoring/response from an augmented security partner

Review soft returns around talent development and cultural perks as well. Ultimately, the augmentation provider, operating model and use case scenarios determine ROI. So choose partners wisely and maintain always-on governance.

Finding the Right Technology Augmentation Partner

Once recognizing IT augmentation as a path to achieving digital ambitions, companies must carefully assess providers to ensure maximum ROI.

Ideal augmentation partners exhibit strengths across factors like:

Breadth of Specialization – All bases covered with cloud, security, analytics, automation ..etc to prevent still facing skill gaps
Bench Depth – Large vetted talent pool guaranteeing right expert fit and backup
Technical Excellence – Top-tier talent and expertise consistently demonstrated through client work
Cultural Alignments – Shared work ethics, responsiveness and collaboration priorities
Accountability – Commitments to outcomes with trackable delivery and performance standards
Global Supply – The best technical minds reside everywhere so global talent access is key
Managed Services – End-to-end capability including managed tech if required

Still, the augmentation partner search comes secondarily to clearly defining business goals for augmentation engagements, then matching provider strengths accordingly.

Without strategic clarity behind augmentation, benefits severely diminish. So anchor engagements to revenue growth, cost optimization or experience targets – not merely short-term technical needs.

Onboarding & Integrating Augmentation Partners

Smoothly onboarding augmented tech teams also steers engagements toward success.

Best practices include:

• Introduce internal staff to augmented talent early so integrated relationships form
• Create combined Trello boards, Slack channels etc. facilitating transparency
• Stage worksessions allowing teams to convergence on tools, metrics and workflows
• Schedule touchpoints reviewing role clarity, goal progress and culture fits
• Incentivize unified team behaviors through consistent rewards and recognitions

Take steps preventing “us vs. them” mentalities. Everyone must feel jointly accountable to deliverables and timelines from day one.

Additionally, ensure consistent governance processes across both internal and third-party tech workers. Standardizing things like security protocols, status reporting, and expense policies prevents confusion down the road.

Emerging IT Augmentation Capabilities

While today’s common augmentation specialties will remain highly demanded, modern tech advances rapidly. Enterprises must keep perspective on what emerging digital capabilities may lack internally in the future.

Top emerging areas to potentially augment include:

Quantum Computing – Quantum promises unprecedented processing power once commoditized, drastically upgrading analytics and compute-intensive use cases. Augmentation provides early exposure.

Web 3.0 – Cryptocurrency, NFTs, the Metaverse and decentralized models will reshape consumer/business technology. Augmentation offers navigating assistance.

Intelligent Automation – Taking RPA to the next level, intelligent automation combines low-code tools with AI for self-learning process improvements. This provides automation beyond basic scripting at scale.

Forward-looking companies will stay ahead of rising technologies via skilled augmentation partners. Sourcing elite external expertise in budding technical practices keeps operations competitive as digital evolves.

The Digital Imperative for Modern Business

Digital capabilities now strongly influence how well companies acquire and retain customers while optimizing operations. Businesses recognizing IT augmentation as a means to effectively compete within the digital age will prosper.

Those failing to take advantage risk fading relevancy in a tech-centric business climate undergoing rapid transformation. Even technology giants like Netflix, Slack and Robinhood leverage augmentation for niche skills and capacity.

For enterprises in almost every industry, the question now becomes not whether to augment, but which capabilities to augment first. Specialized talent and technical infrastructure – abundantly available as-needed – have disrupted traditional technology management models forever.

Forward-looking companies will embrace modern IT resourcing models like augmentation to sharpen competitive positioning. As digital demands accelerate, augmentation delivers the agility, expertise and cost efficiencies necessary to keep pace. So prepare to augment and let the digital future unfold!