Before hiring an IT staff augmentation company, learn about what influences their hourly rates. Keep in mind that the duration of your project and your project scope can impact the total project cost.
Nearly every business relies on computer systems to keep operations running efficiently and effectively. Because of this, information technology (IT) services are necessary to manage communication, data, and IT systems.
Your IT environment consists of both hardware, such as computer, servers, and network devices, and software. The larger it is, the more involved and labor-intensive maintenance can be.
To keep up with their needs, many companies turn to IT staff augmentation companies.
Staff augmentation is an outsourcing strategy in which companies hire temporary staff to meet their needs. This makes it easy to scale your team as needed and fill skills gaps to make sure your projects stay on track and you meet your business objectives.
This pricing guide will dive into how much it costs to hire an IT staff augmentation as well as the factors that can impact their hourly rates.
IT Staff Augmentation projects reviewed on Clutch typically cost$50,000 - $199,999
Most IT staff augmentation projects are expensive and can cost anywhere from a few tens of thousands of dollars to several hundred thousand dollars.
While this price brand is pretty broad, costs vary largely based on how many IT professionals you need to support your project, what they specialize in, and what services they are providing.
Often, IT staff augmentation partnerships are ongoing, meaning that they plan to continue working together for the foreseeable future. Because of this, costs can increase dramatically over time.
In reality, the price range for hiring an IT staff augmentation firm is even broader than what’s displayed in the graphic above. Depending on your industry and the scope of your project, partnerships could be significantly more or less.
How Much Does it Cost To Hire an IT Staff Augmentation Company In Your Industry?
Businesses from nearly every industry hire IT staff augmentation firms to support their IT team, but how much they pay for their services varies wildly.
According to data collected by Clutch, the average cost of an IT staff augmentation partnership varies dramatically depending on the client’s industry. While companies in the tech or retail space may be paying as little as ten thousand dollars, price ranges for those in web and mobile app development stretch to nearly $1 million.
This table breaks down the average project cost of an IT staff augmentation project based on the client’s industry.
Average Project Cost
Information Technology (IT)
Web & Mobile Development
Note: Price ranges above are in U.S. dollars
It’s important to remember though, that these prices are largely affected by the duration and scope of the project and aren’t necessarily indicative of what you should expect to spend on IT staff augmentation.
How Much Should I Really Be Budgeting for IT Staff Augmentation?
While the costs for hiring an IT staff augmentation company may seem high, costs are actually drawn out over time. As discussed above, many of these projects are ongoing partnerships and payments are made at recurring intervals, making them much more affordable for most businesses.
To budget for hiring an IT staff augmentation firm, you should focus more on what you’re willing to pay per month.
By designating monthly spending limits based on your monthly fees, you will be forced to prioritize where you need the most support and be more likely to find an IT staffing partner that meets your requirements.
Pricing Models for IT Staff Augmentation Companies
To get a better understanding of how much you should expect to spend on IT staff augmentation, you will need to understand how they charge for their services. Companies can use one of several different pricing models, many of which are based on the scope of their involvement.
Here are some of the most common pricing models that IT staff augmentation companies offer:
- Hourly: Many IT staff augmentation companies offer hourly rates, so project costs will increase the more time that a resource is working on your project. Often, though, you can set limits for how much time they will be working on your project so you can maintain control of your total costs.
- Monthly retainer: If you have an agreement for a long-term project, it makes sense to keep your IT staff augmentation partner on retainer. In this pricing model, you will pay a flat monthly rate for unlimited services.
- Continued-term: Similar to a monthly retainer, continued-term models are used for extended projects, but can be broken down by a monthly or hourly rate. What separates this model is that they will provide a team of IT professionals that are dedicated specifically to your project.
- Fixed price: A fixed pricing model is when companies pay a flat rate for their services. Companies can only use a fixed pricing model where the project scope is predefined and has a set start and end date. This provides the least amount of flexibility for your project but makes it easy to keep to your budget.
How Much Do IT Staff Augmentation Companies Charge?
The average cost of hiring a staff augmentation company on Clutch ranges between $25–$49 per hour.
Explore Recommended Staff Augmentation Companies
Whether they’re on the higher end of that range depends largely on the services they’re providing, the expertise that is required, and the scope of your project.
Managing or updating your IT environment can take a lot of work. IT staff augmentation companies can provide a variety of services to ensure that their clients’ networks are operating efficiently.
- Installing hardware & software
- Providing technical support
- Establishing IT infrastructure
- Overseeing use of systems and networks
- Network services
Additional Reading, ‘IT Services Glossary: 80 Crucial Terms.’
While setting up a network, for example, may just be a temporary project, many of these other projects require ongoing maintenance and support. While IT staff augmentation firms may charge higher hourly rates for temporary projects like installing hardware and organizing your computer network, they are likely to cost less than ongoing management.
Maintenance costs are generally lower but increase as the duration of your project extends.
If you know what services you need, you can scope your project and discuss your needs with potential service providers. This can help you identify whether you need support from people with specific expertise and budget accordingly.
What Impacts Staff Augmentation Rates?
- Team size
- Project duration
- Project scope
As discussed above, the project duration and scope are the biggest factors for the overall cost of the project. On top of that, though, the team’s experience, size, and location can have a big impact on their hourly rates.
IT professionals who have been working in the industry for years or who have specialized education and experience are likely to charge higher hourly rates for their services.
Additionally, as your project scope expands, you may need to bring on additional team members to make sure your project has all of the resources it needs. When this happens, IT staff augmentation companies will charge higher rates to cover the labor of multiple employees.
Still, if you’re looking to save money on your IT staff augmentation partnership, one way you can reduce costs is by outsourcing to service providers in other locations.
2023 IT Staff Augmentation Pricing by Location
Browse hourly rates for IT Staff Augmentation companies by popular locations.
|Country||Average Cost per Hour|
|United States of America||$25 - $49|
|India||$25 - $49|
|United Kingdom||$50 - $99|
|Canada||$100 - $149|
|Australia||$100 - $149|
|Ukraine||$25 - $49|
|Poland||$25 - $49|
|Spain||$25 - $49|
|Mexico||$25 - $49|
Regions like Eastern Europe and Southeast Asia are well-known for their expansive tech industry and often charge lower hourly rates than those in Western Europe or the United States. This means that companies looking to hire an IT staff augmentation company can keep expenses low without sacrificing quality.
However, many companies prefer to hire closer to where they are located if they require support that requires their team to come into the office, like if they need help setting up their network or installing hardware.
Otherwise, it’s easy to collaborate with teams in other areas as long as you’re comfortable with using communication tools like Zoom and Microsoft Teams to manage the project.
Strengthen IT Infrastructure With a Trusted IT Staff Augmentation Company
Your IT network is needed to keep your business running efficiently and effectively. However, maintaining your IT systems can be expensive and challenging.
Hiring an IT staff augmentation company is a great way to prevent issues and ensure that your company has a back-up if you need support.
While IT staff augmentation services can seem pricey, the real cost is dependent on your needs. If you set a monthly budget and clearly outline your scope, you can find a quality IT staff augmentation partner that meets your needs without the ridiculous expenses.
Search top IT staff augmentation companies on Clutch.Browse