Organisations who choose to hire contract staff generally opt for Staff Augmentation (T&M) engagement approach. These contract staff are engaged against specific headcount approvals for specific position for Business As Usual (BAU) support or could be for short or long term projects where overall budget approval exists.
The typical Staff Augmentation (T&M) engagement model throws challenges such as
- Processing of paperwork and management approvals are required to be done every time when any contract staff resigns and need to be backfilled.
- Repetitive administrative overheads and hassles for each contract staff engagement such as separate purchase orders or contract documents, Time sheets, invoice processing for every contract staff deployed etc.
- Budget is tagged with individual contract staff, hence it’s difficult to forecast expenditures because if any contract staff resigns, it may not be possible to backfill the same for exact billing of the outgoing staff.
- It’s impossible to depute any billable contract staff for skill up gradation or any kind of training programs as it will be considered as non-productive man-hours for which cost need to be factored in the budget. Also the shortage of support staff may cause disruption of services or poor quality in service delivery.
- Attrition management and induction of new staff becomes a challenge.
Softenger’s onsite Fixed cost service bundle offering has helped customers addressing most of the above issues and has been highly appreciated as go to alternative for Staff Augmentation (T&M) kind of engagement. Salient features and advantages of Onsite Fixed cost service bundle are as below.
- Softenger will maintain onsite fixed number of contract staff with specific skills and level of experience as required by the customers for a one bundled price against single purchase order.
- Softenger will maintain strong pipeline of purpose trained resources capable of handling entry level support and such resources can be brought on board in case of attrition at lower levels which is found common in large support teams having pyramid type composition.
- It’s possible to conduct environment specific induction both in terms of technologies used as well as processes being followed in customer environment prior to on boarding. Alternatively few resources can be deployed onsite to work as shadow resource at no additional cost to customer.
- It’s possible to allocate resources for skill upgrade programs as additional resources are available to share the work load.
- With single purchase order, customers can forecast their expenditures more accurately as against they have T&M engagements with number of contract staff with them.
- Customers are relieved from hassles of screening profiles, interviewing resources while back filling contract staff positions meant for entry level support.
- Customers are relieved from repetitive administrative hassles such as obtaining budget approvals, preparing contracts/Purchase orders etc., when they have to backfill contract positions.
- Softenger will depute Client Relationship / Account Manager who will be present onsite and work closely with customers to ensure administrative and hygiene related responsibilities related to Softenger contract staff deployed on site.
- Ramping up of the team can be managed more effectively as Softenger onsite manager will be working closely with customer staff to understand such forth coming needs and proactively build pipeline of required skills and experience so that screening, interviewing and on boarding of short listed staff can be expedited more efficiently.
- However the daily work allocation, performance evaluation and managing service output of contract staff still lies with Customers thus giving him better comfort and control over the contract staff engaged onsite.