IT Staff Augmentation Market Procurement Intelligence Report

A purchasing guide for IT Staff Augmentation – rich advisory on spend outlook in IT Staff Augmentation, pricing analysis for IT Staff Augmentation procurement cost benchmarking, negotiation strategies and key vendors of IT Staff Augmentation.

Scope of the report

Ecosystem of the global IT Staff Augmentation category is intertwined with the larger parent market of Consultancy. Our category definition describes that overall Consultancy market includes all spend related to advisory and consulting services with respect to specific aspects or functions of the client with a stated objective and end result.


Strategic Sourcing Guide to IT Staff Augmentation Procurement


The market for Consultancy and its sub-segments such as IT Staff Augmentation are at an interesting intersection. The market is rapidly showing signs of a great divide - at one extreme is a low-cost market with almost commoditized services and at the other end is the market for high cost specialized services. IT Staff Augmentation vendors are adopting starkly different business models and cost structures in an effort to address both the markets.

Certain non-compliance scandals in the broader professional services industry has pushed both clients and suppliers to put in proper processes and protocols that reduce non-compliance, protect data and information and demonstrate ethical business practices.

The concept of virtual firms is getting popular. By placing the entire infrastructure in cloud services, and utilizing a small number of physical offices, IT Staff Augmentation suppliers are trying to cut their costs and developing cost competitive propositions for buyers.

Trends like these and many others discussed in this report are necessitating a relook at the way IT Staff Augmentation is procured and the procurement cost saving opportunities that exist.

IT Staff Augmentation Procurement Best Practices

Sometimes, procurement functions are unable to timely alter their practices while responding to market conditions. Industry experts acknowledge that periodically reviewing procurement best practices and adopting learnings from across procurement categories can help procurement teams respond to market needs in a more agile way. This report combines our experience of other categories with IT Staff Augmentation procurement insights and hand picks best practices that can work for category managers delving in this market.

For example, Adequate RFP response time should be built in for prospective suppliers to enable them understand the scope and performance requirements.

Category managers must ensure that they have clearly identified and listed down potential negotiation levers to maximize the value of their category spend before entering into contract-related discussions with service providers. Common negotiation levers to maximize value include deadlines, terms related to payments, (including fees, expenses, and payment timelines) and assistance required from the buyer's organization.

Investing in benchmarking studies help category managers improve their knowledge on market pricing or billing rates of consultants by job role and function. This also allows them to save costs as well as negotiate better with service providers.

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Risks in IT Staff Augmentation procurement

IT Staff Augmentation procurement managers also need to proactively identify and mitigate potential risks that can arise in the supply chain or contracts for IT Staff Augmentation procurement. Some examples include:

  • When requirements of the buyers are not absolutely clear or usage patterns are not stable or predictable, suppliers often build in \"cost buffers\" for unforeseen risks due to a lack of complete understanding on buyer's requirements. This increases the risk of overspending on IT Staff Augmentation
  • Procurement without consulting the actual users of IT Staff Augmentation may result in a mismatch in expectations of the buyer's internal stakeholders versus the actual contract executed
  • Suppliers may face a situation where they are unable to honor a contract in its entirety due to shortage of resources, finances or capabilities. While contractual terms safeguard buyers from the non-performance, their operations could still face massive disruptions due to suppliers' non-performance

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Who should read this report

  • Procurement decisions can prove to be costly in the absence of careful deliberation and evaluation of every available option. In fact, more than 90% of the decision makers we work with acknowledge that timely availability of up-to-date category intelligence can help them make better purchasing decisions. More than 80% of them believe that in-house category intelligence needs to be updated periodically to achieve full benefits. If you have read so far, we are quite sure you agree!!

    You may have just initiated your research to design a winning IT Staff Augmentation procurement strategy, or you may be a category expert looking for strategic insights and updated data.Either ways, the report has your requirements covered.

    The report is intended to serve as a one-stop reference guide for IT Staff Augmentation procurement strategy and offers a perfect blend of category basics with deep-dive category data and insights. Therefore, it is ideal for category beginners looking for “IT Staff Augmentation: Procurement Report 101” as well as for category experts actively tracking the global IT Staff Augmentation procurement market.

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Key questions on IT Staff Augmentation procurement answered by this report

    The IT Staff Augmentation procurement report helps take more informed decisions by placing all the critical information and advice at the fingertips of a decision maker. It also specifically answers some of the key questions that we have been routinely asked during our industry outreach initiatives:


    • What is the spend potential in the IT Staff Augmentation market?
    • What is the correct price to pay for IT Staff Augmentation? What are the key trends and factors that influence current and future pricing?
    • Which selection criteria are the most important for IT Staff Augmentation Suppliers Market?
    • Who are the top IT Staff Augmentation suppliers? What are their cost structures?
    • What are supplier margins in IT Staff Augmentation market?
    • Which negotiation levers can reduce IT Staff Augmentation procurement cost ?
    • What are the best practices for IT Staff Augmentation procurement and what are the potential risks?

SpendEdge Insights has helped procurement professionals and sourcing teams manage multiple spend areas and achieve more than $2 billion in savings. Activate your free account today!

IT Staff Augmentation Category Insights: What is inside

  • A comprehensive drill down on category sourcing execution: Data, insights, advisory

    The IT Staff Augmentation market report offers a complete picture of the supply market and analyzes the category from the perspective of both buyers and suppliers. Analysis of the category trends, procurement best practices, negotiation levers and overall category management strategy advisory are interspersed with in-depth data and commentary on spend outlook, pricing ecosystem and supplier landscape drilled down to a region-level coverage.


    A key highlight of this report is the in-depth outlook created on IT Staff Augmentation procurement spend and pricing trends. The report further delves deep into the aspects of cost structure, total cost of ownership and supplier margins for IT Staff Augmentation. A dedicated section to supplier profiles and evaluation helps decision makers cast a wider procurement net and identify gaps in existing relationships.


    Along with specific category and supplier intelligence, the publication also includes curated insights on IT Staff Augmentation market trends, price influencers and inherent risks. These insights help the decision makers prepare for market shaping trends in advance and create alternative strategies for changes in the market conditions.


    Additionally, the report also advises on the best practices and strategies to manage the IT Staff Augmentation category efficiently. Negotiation levers and opportunities are explained in detail along with quantification of their potential. Benchmark KPIs for supplier and buyer performance management are also aggregated to better organize the category objectives. Other themes of advisory include ideal procurement organization structure, enablers to achieve KPIs or category objectives and ideal SLAs to have with suppliers.

  • Unrivalled breadth of category analysis: at your fingertips

    Category Ecosystem

    • Buyer and supplier ecosystem
    • Competitiveness index
    • Buyer and supplier power
    • Threat of new entrants and substitutes

    Global and Regional Sourcing Insights

    • Category spend
    • Spend growth
    • Dynamics
    • Opportunities

    Pricing and Cost Analysis

      • Pricing outlook and data
      • Drivers of pricing
      • Cost structure and inputs cost
      • Total cost of ownership
      • Pricing models and margins

    Cost Saving Opportunities & Negotiation Strategies

    • Buyer and supplier side levers
    • Quantified cost saving opportunities
    • Negotiation strategies and quantified outcome

    Procurement Best Practices, Strategy and Enablers

    • Procurement excellence
    • Sustainability and innovation
    • KPIs and category enablers
    • Risk management and outsourcing

    Vendor Analysis

    • RFx essentials and selection criteria
    • SLAs
    • Supplier evaluation metrics
    • Detailed supplier profiles
  • A lucid, easy to read format: Enabling fast decisions

    Our research is complex, but our reports are easy to digest. Quantitative analysis and exhaustive commentary is placed in an easy to read format that gives you an in-depth knowledge on the category without spending hours to figure out “what does it mean for my company?”

Category Research Framework

SpendEdge presents a detailed picture of IT Staff Augmentation procurement solutions by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key category influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.

Information Sources

Primary research
Secondary research
Procurement heads
Industry journals and reports
Category managers
Periodicals and new articles
Sourcing consortium professionals
Category webinars
Industry experts and thought leaders
Internal categiry playbooks
Procurement managers
Industry/government websites on regulations, compliance
Category heads of suppliers
Internal databases
Client account heads/managers
Industry blogs/thought leader briefings
Client and industry consultants

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