Staff augmentation is a type of outsourcing service in which the software company provides its engineers in the form of external hiring, usually on a time and materials contract basis.
In practice, the outsourcer’s internal team is expanded with outside specialists (or composed solely of them) working on the buyer’s premises for the duration of the project.
By augmenting the staff, companies reduce costs associated with staffing, payroll, and project implementation. This model is also easily scalable – it is much easier to break such a partnership than to terminate an employment contract, so you can quickly reduce (or increase it) if necessary.
Furthermore, that full responsibility shift reduces formalities involving human resources, employment – which allows the outsourcer to focus more on the core business.