Staff augmentation is one of the most common professional services delivery models. It involves placing consultants directly into client teams to fill skill or capacity gaps.
Staff Augmentation vs. Other Models
| Model | Description | Typical Margin |
|---|---|---|
| Staff Augmentation | Place individuals on client teams | 15-30% |
| Managed Services | Deliver outcomes with your team | 30-50% |
| Consulting Projects | Advisory with defined deliverables | 40-65% |
When to Use Staff Augmentation
- Client needs specific skills not available internally
- Short-term capacity gap on client side
- Client wants to maintain direct control of work
- Lower-risk entry into a new client relationship
- Predictable billing model for both parties
Managing Staff Augmentation Profitably
Pricing
- Bill at a markup over consultant cost (typically 1.3-2.0x)
- Include benefits, overhead, and profit margin in rate
- Consider blended rates for multi-level teams
Operations
- Track utilization closely — bench time kills margins
- Maintain regular check-ins with placed consultants
- Monitor client satisfaction proactively
- Plan for transitions and ramp-down periods
Growth Strategy
- Use staff aug as a foot in the door for higher-value work
- Transition to managed services or advisory when possible
- Build relationships that lead to broader engagements