If you want to build a new product for your business, you are likely trying to choose between these two options – in-house hiring and IT staff augmentation. Both of them have solid advantages and a number of drawbacks.
Building from scratch or upgrading your existing product requires a solid development team, but what should you do when you lack one or several tech experts? You may set a task for your recruitment department to seek and hire them, or you can rely on a software development services vendor and choose a staff augmentation model to collaborate with them. According to Statista, the number of software developers worldwide continues to grow and is projected to reach 28.7 million specialists by 2024. Even though this number is enormous, companies still struggle to find perfect candidates.
Even though it is tempting for us as a software development company to focus only on the benefits of IT staff augmentation, we want to give you an unbiased full picture of both options so that you can pick the one that suits you best and get the most talented and motivated experts for your project.
Cases When You Need In-House Recruitment
Hiring workers for your in-house software development team is a long-term investment to improve your company’s skillset and mastery. Because you want a worker to be a valuable asset, selecting the right candidate is usually meticulous. Therefore, recruiters need weeks or months to find, interview, and choose a suitable specialist to fill a vacant position.
Moreover, the lack of particular specialists weakens a company, so it takes longer to complete tasks and projects. Staff shortage also limits the scope of projects a company can take and the goals it can achieve.
So, recruiting specialists to an in-house department usually takes place when a company:
needs to improve its skillset on a long-term basis;
has a staff of recruiters;
can afford to spend time on search;
can interest candidates in employment by offering competitive salaries and corporate benefits.
Let’s have a look at the potential benefits and drawbacks of in-house hiring.
Pros of In-House Recruitment
Excellent communication. Since employees traditionally work from the office, internal and external communication is straightforward. Office environment also enables live communication, which is usually more productive than via software messengers.
Benefits of team building and corporate spirit. Companies invest in promoting corporate values to bring workers closer together. The company’s managers and HR department take many measures to boost team morale and increase workers’ loyalty and productivity.
Easier management. Team management becomes significantly easier since in-team employees are usually available at the office. As an additional benefit, in most cases, all workers share the same timezone and speak the same language, which further benefits management.
Higher security. Usually, the hiring process involves additional security measures, such as checking candidates’ backgrounds. This way, your company can ensure that candidates have the required skills and they won’t disrupt the work process or cause other problems.
Skill improvement. Often companies implement various training programs or encouragement means to enhance the skills of their employees.
Cons of In-House Recruitment
Search and hiring takes time. There is a skill shortage of IT specialists in various areas of software development. That’s why finding a suitable candidate that matches the company’s requirements and expectations may take significant time.
An employee may suddenly leave. Your employees may get “hunted” and recruited by your competitor. This is especially devastating if a worker has rare or unique skills and expertise. Such experts are very hard to replace, and their sudden absence may impact the flow of processes in your company.
Increased needs. An employee requires a productive working environment: a spacious office, sturdy equipment, and recreation facilities. Your company should provide all of that to maximize the productivity of employees. Good working conditions are also an important factor that may prevent workers from leaving even if they are unsatisfied with other factors, such as salaries or appreciation.
Fixed fee. In most cases, in-house employees have set salaries that are not influenced by the amount of work done during the payment period. This means if, for whatever reason, there is no work currently for a particular employee, they must be paid at the end of the month even though they have been “benched” the whole time.
In Which Case Should You Choose a Staff Augmentation Model?
Staff augmentation is a much quicker but temporary solution if you need a worker with particular skills and expertise. Usually, staff augmentation involves reaching the providers of tech skills instead of using recruiters to find workers. That means you simply contact a company with a pool of specialists as its employees and negotiate “renting” one or several of them under a contract. The process is fast and straightforward, so it will be perfect in cases when your company:
is a startup with a limited budget looking forward to its breakthrough;
needs to find a specialist quickly;
cannot provide an adequate working environment for a large team at your office;
does not have the resources to handle mandatory payments, benefits, taxes, and other perks for a lot of workers.
Here are the advantages and disadvantages of a staff augmentation model:
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Lower cost compared to in-house workers. The amount of payment depends on the amount of work. You pay only for productive activities.
Easier hiring process. You contact a company, tell them what kind of specialist you need, specify the requirements, and get the result. It requires minimum effort from your HR and recruiting specialists.
Shorter search. Companies that provide staff augmentation services keep track of their pool of specialists, so they can instantly tell you if they have a suitable candidate that meets your requirements. Instead of contacting each candidate individually, you reach a manager who represents a group of workers available for hire.
Excellent flexibility and scalability. If your project unexpectedly grows to the point when you need to add more specialists, staff augmentation can quickly fix this.
Workers take care of their working environment. Since hired staff works remotely, your company does not need to provide them with office space, equipment, and facilities. This fact means significant savings, which are especially beneficial for small businesses and startups.
Cons of Staff Augmentation Model
More challenging management. Remote workers may be difficult to manage, especially when time zones are different. Though there are many software solutions to promote team coordination and communication, team managers need to make extra efforts to ensure a smooth workflow.
Potential communication issues. Sometimes insufficient language skills and cultural differences may present additional problems for team coordination.
Hired workers lack team spirit and corporate values. Temporary hired employees do not care about the future of your company. They are paid to get the job done, and that’s the only thing they are interested in.
Main Differences Between In-House Recruiting and Staff Augmentation Services
For the sake of brevity, the main differences between the two employment models are given in the comparison table below.
Common Features in In-House Recruitment and Staff Augmentation Models
Both hiring models offer a range of shared features that benefit your company:
you can add the necessary amount of specialists with the required skills to your team;
your team can complete projects
In both models, hired workers are responsible for the quality of their work;
newly obtained specialists cooperate effectively with the rest of the team and other departments;
hired staff log their activities and prepare documentation for the projects they work on.
Keep in mind that despite both models having these common characteristics, the choice of a particular model depends on their differences.
In-House Developers: Where to Look?
There are several methods and places to find a good software developer for your in-house team.
Specialized online platforms for posting tasks and hiring workers. (Upwork, Freelancer)
Job vacancies websites. (Indeed, Glassdoor)
Online catalogs of service providers. (Clutch, GoodFirms)
Referrals from your current employees, colleagues, etc.
Regardless of the method, take a responsible approach and spend enough time researching and separating real specialists from frauds.
Why Intellectsoft is the Right Staff Augmentation Company for You?
So, you’re looking for an outsource software development company that offers staff augmentation, among other collaboration models. Since Intellectsoft happens to be one, let us tell you the benefits of choosing our staffing services and specialists for your project.
Multi-Industry Expertise
Intellectsoft was founded back in 2007, which means we have 15+ years of active experience. Over the years, we have worked on and delivered over 600 projects for our clients engaged in Fintech, Healthcare, construction, transportation and logistics, eCommerce and retail, insurance, and many other industries.
Trusted by Several Fortune 500 Companies
We are proud to say that we have provided software development and consulting services for globally renowned brands such as Harley Davidson, Audi, Guinness, Nestle, Eurostar, Cirrus Insight, Melco, and many others. These companies would have never chosen us if we weren’t among the best in custom software development.
Reliable Technologies
We use a set of technologies that are advanced, prove their use and efficiency, and help us create solid, cutting-edge web and mobile solutions for our clients.
Tech Specialists with Excellent Knowledge of English
We know that companies that want to hire a remote specialist often face a language barrier when it comes to communicating with technical experts like developers, quality assurance specialists, UI/UX designers, and others. Intellectsoft has specialists from different countries in Europe and North America, so communication is never a problem for our clients.
Extensive Talent Pool
We have many specialists on our team who cover the following:
– iOS and Android app development (native and hybrid);
– Custom web solutions;
– Cloud solutions,
– Software architecture;
– Quality assurance and testing,
– DevOps services;
– UI/UX design;
– Blockchain;
– Product engineering, etc.
Top-Quality Result
When it comes to the quality of our services and solutions, we let our clients speak. You may find feedback from our clients onClutch,Business of Apps, andGoodfirms. The number of awards we have received over the years also can tell a lot about the quality we provide.
Fast Time-to-Market
If you need to build and launch your product fast, we are experts in building minimum viable products (MVP) and creating proof of concept (PoC) for reaching the market and collecting early feedback from first users or getting required investments for your business project.
To Sum Up
As you see, hiring an in-house employee and collaborating with a software development company using the staff augmentation model are great options to consider when your project needs a new professional.
If you have a long-term, complex, and highly confidential project and need to have the development team gathered in one office so that you can reach them any time you need within working hours – hiring in-house specialists may be your perfect choice. However, if you need a reliable professional immediately and your project cannot wait for weeks or even months – IT staff augmentation from an outsourcing vendor is a perfect choice. Even if your remote staff augmentation specialist lives across the globe in a different timezone, you can specify their working hours in the contract. Depending on the duration of your project, you can discuss how long a remote specialist may be available for your company.
The best part of working with outsourcing providers is that if a specialist decides to leave that company and your project, they will find a replacement with an equal set of knowledge and skills faster than your recruitment department.
Being a company with an extensive talent pool and expertise, Intellectsoft can empower your in-house or distributed project team with front-end, back-end, mobile, QA, DevOps, and many other professional and trustworthy specialists. Justreach out to us, describe your problem and requirements, and we’ll solve your lack of software development specialists right away.
The hospitality industry depends a lot on keeping customers happy, but it’s getting harder to attract and keep them. The pandemic hit this industry hard, and now market competition is tougher than ever, with competitive offerings swaying customers. Hospitality businesses are willing to spend big to win customers back. The main questions for many are: how can we stay ahead of the competition, keep our customers, and increase revenue? Keep reading—we’ve got some answers.
Customers today have so many options that getting their attention is a real challenge. It’s not easy to make them choose your business over others. What worked 10 years ago doesn’t work the same way now. Back then, people often chose businesses based on reputation. But with new types of businesses (boutique hotels, craft cafes) popping up or big enterprises getting a new strategy, expectations have changed. The good news is these businesses have shown what works: great customer service. They focus on personalizing the experience, making things easy for customers, offering loyalty programs, and using smart technology.
In this article, we’ll explore these tech strategies and show you how they can help your business grow, and double the revenue. Keep reading to learn more!
The Importance of Customer Satisfaction in the Hospitality Industry
Customer satisfaction, which equals exceptional customer experience, is the backbone of the hospitality industry. It plays a central role in driving revenue and loyalty, as satisfied customers are more likely to return and recommend a hotel, restaurant, or other hospitality business to others. In fact, a study by the Harvard Business Review found that a 1% increase in customer satisfaction can lead to a 0.5% increase in revenue. Moreover, loyal customers are more likely to forgive mistakes and continue doing business with a company, even if they experience a negative encounter.
Let's quickly review the challenges the hospitality industry is facing right now so we can move on to the solutions and our case studies.
Challenges in Hospitality
As businesses navigate the changes in the hospitality industry, there are some key areas where a little improvement can go a long way. From improving customer service to embracing digital transformation and tackling labor shortages, we’ll take a closer look at today’s biggest challenges—and, more importantly, how technology can step in to help. Let’s get started!
Poor Customer Service
Even with strong and high-quality business offerings, poor customer service can drive potential customers and existing customers away. Common issues include:
Long wait times in customer service queues (it is worth remembering that our attention spans 8 seconds, and we live in a very busy world, so quick and efficient responses are more important than ever.)
Poorly trained customer service representatives
Lack of follow-up
Services not being done properly or quickly
Recall issues that require multiple service calls
These problems can frustrate customers. But, at Intellectsoft, we believe that the right approach, combined with technology, can address them effectively.
Digital Transformation Gaps
Approximately 50% of hotels are adopting new technologies, with 43% automating repetitive tasks and 39% upgrading existing systems. Source: workstaff.app
While many businesses are adopting digital solutions, some still struggle with outdated systems and fragmented data. Legacy companies often face chaos when trying to manage their data and create new systems or add features.
Some of the recent examples include clients coming to us to create AI solutions for their services while their data simply was not ready for the advanced tasks. We advise stepping back, communicating with a company objective, and working on keeping the data clean (centralized, structured, and segmented).
When we’re asked to create advanced systems using AI, we always emphasize the importance of organized data. To train AI and build such complicated systems that truly work, you need to start from the very beginning—collecting, storing, centralizing, and organizing it. We encourage our clients to align all departments to work internally on the data so we can create a unified digital system that delivers personalized experiences.
If you’re unsure where to start with your data, we can help. Collecting feedback at various touchpoints along the customer journey is crucial for gaining insights into customer satisfaction and loyalty. Book an IT consultation with us, and our experts will guide you in mapping out a path to get more from your data and build a system that works for your business and team.
Reskilling Staff
The pandemic hit hard in early 2020, especially for the hospitality and travel industries. Even five years later, many businesses are still feeling the impact. Recruiting and retaining skilled staff has become a major challenge post-pandemic.
Reskilling to address technology’s impact is of utmost importance, as about 40% of hotel General Managers place it among their top three workforce challenges.
We strongly believe that adopting the right technology can help. For example, creating an app to train your staff not only saves time but also ensures consistency in learning. AI assistants can also work alongside your team, helping with tasks like recruitment (providing industry insights, crafting emails) and staff training. Imagine having an app dedicated to making your team’s work easier and more efficient!
How Technology Tackles These Challenges and Supports a Customer-Centric Hospitality Culture
Automation, AI, and similar technologies may threaten many. However, the debate about replacing humans isn’t about that—it’s about cooperation and working hand in hand with technology to achieve the highest standards and establish brand-new “golden standards.” Technology is here to assist staff in listening to and collecting customer insights from data.
Let’s review some of our cases to see examples of how technology helps improve customer experience and supports customer service.
Examples of Intellectsoft projects
Property management systems (PMS)
We created a web platform and mobile app that makes managing daily tasks easier and offers extra services to improve residents’ experience. It gives a clear overview of daily activities and helps with managing units and users. Residents can easily book amenities, submit service requests, and report incidents. The platform also includes features for equipment management, key instructions, workflows, and custom permissions. This makes it easier for staff to stay on top of equipment and ensure residents have all the information they need. Plus, tools like announcements, quick votes, a forum, and a community calendar help build a connected and engaged community.
Guest Experience Management App
Our next app helped our client improve their guest experience by replacing printed marketing materials and the need for phone calls with a smart solution. Now, guests can easily order in-room dining, make reservations, and interact with staff— through a simple tablet in their room. The solution includes three parts: a custom in-room tablet with a variety of services, an admin panel for hotel staff and service providers, and a backend system that connects everything together. This approach makes things easier for guests and staff, improving both convenience and efficiency.
Existing Customers First: Building Loyalty with Personalized Touchpoints
Keeping existing customers is not just a strategy; it’s well-known that retaining existing customers is more cost-effective than acquiring new ones. In fact, research shows that it costs five times more to acquire a new customer than to retain an existing one. KPMG named customer retention as the number one revenue driver for the company.
Moreover, a 5% increase in customer retention can lead to a 25% to 95% increase in profits, showing the significant impact loyal customers can have on a business’s bottom line. Retention strategies, like personalized experiences and loyalty programs, can foster long-term relationships and generate recurring revenue, ultimately making them an invaluable part of any business model.
Personalization: How Technology Can Help?
Everyone loves to feel special—it’s part of being human. In hospitality, personalization has evolved from being a luxury to an essential standard. With the right technology to manage your data effectively, you can deliver those “wow” moments that guests won’t forget.
More than half of hotel chains are already using personalization features on their websites, booking platforms, and apps, and another 39% are planning to follow suit soon. They’re tailoring experiences to fit guest preferences perfectly.
Source: Deloitte
How does technology make it happen?
CRM Systems: They help you keep track of guest preferences, booking history, and special requests so you can offer services tailored just for them.
Loyalty Programs: Personalized rewards and offers show your guests that you value them, keeping them coming back for more.
AI Personalization: AI analyzes guest data to predict what they’ll love (from room upgrades to local recommendations) before they even ask.
IoT Gadgets: Smart room features like voice-activated assistants, or temperature controls adjust to your guests’ preferences, making their stay more comfortable.
With tech-powered personalization, you’re building loyalty and maximizing the lifetime value of every customer.
Our Case Study: Smart Hotel Management & Loyalty Program
For one of our clients, we created a smart room solution, complete with a custom IoT system. Guests can use a mobile app to control services, explore amenities, and find resort information-- with a special touch to their suite type. For the client’s entertainment business, we improved their legacy software by running a full IT and code check, fixing issues, and making the system better for customers.
Along with that, we developed a mobile app for the loyalty program, allowing businesses to effortlessly reward their customers and keep them engaged with exclusive benefits.
Our solutions not only helped the client with special experiences for guests; it also improved operations, cutting costs by eliminating inefficiencies. Here's what our experts shared:
"We transitioned away from ESB (Enterprise Service Bus) systems, which previously cost millions, and replaced them with more efficient, self-managed solutions. Similarly, we’ve implemented Device Farms that improved operations and saved resources."
Leveraging Software to Increase Upsell Opportunities
Here are some examples of tech tactics that will help your team sell more and introduce new offerings to existing customers, improve overall efficiency leaving your team grateful:
Dynamic Pricing Algorithms
For finance and marketing teams, manually calculating pricing by segment to introduce your clients can be incredibly challenging. AI-powered tools can strongly optimize these strategies by analyzing your database in detail.
Upselling via Apps
Boosting revenue in the hospitality business often comes down to personalized experiences. Imagine this: a guest books a room, and then your app suggests a spa package or a room upgrade at just the right moment. Later, it nudges them to book a dinner reservation or a guided tour designed to their preferences. With apps offering these personalized recommendations during and after bookings, you’re not just increasing your revenue per guest but also skyrocketing their experience. And you do it in a sustainable way, not by speculating, but by offering what your customers desire based on their previous experiences. It’s a win-win: seamless, helpful, and far from pushy.
Inventory and Resource Management Software
Making every resource count in your hospitality business is key. Inventory and resource management software allows you to effortlessly track everything from linens to room availability, ensuring nothing goes to waste. Having real-time insights to reduce overstock, avoid shortages, and optimize operations assists sustainably keep everything under control and know what you need to focus more. It helps maximize room occupancy by aligning bookings with available resources, ensuring every room and item is used effectively. This approach leads to smarter management, better guest experiences, and a noticeable boost to your bottom line.
Adopting these strategies not only optimizes your operations but also drives business growth. Ready to discover how technology can elevate your goals? We’re here to create a tailored solution for you.
Steps For Implementing a Customer Service Technology Solution
Improving customer service in hospitality doesn’t have to be a daunting task. With the right technology, you can smooth the path of your operations, speed up response times, and elevate the overall guest experience. Here’s where you can make it happen:
1. Understand Your Needs
Start by identifying the challenges your business is facing. Are you struggling to manage high volumes of inquiries, track customer feedback, or personalize the guest experience? Pinpointing your needs will guide you to the best solutions.
2. Pick the Right Tools
Choose technology that aligns with your goals. Look for solutions that are scalable, easy to use, and integrate effortlessly with your current systems. Options like CRM software, live chat tools, or a guest experience app can make a difference.
3. Equip Your Team
Technology is only as effective as the people using it. Train your staff to make the most of the new tools, so they can deliver exceptional service and resolve issues quickly. Confident, well-equipped staff creates happy, loyal customers.
4. Keep Improving
Once implemented, monitor how well the solution works. Are response times improving? Are customers more satisfied? Regular evaluations will help you fine-tune your approach and keep things running harmoniously.
Some Tech Ideas for Hospitality Businesses
CRM Software: Manage customer interactions and preferences.
Guest Experience Apps: Delight guests with personalized experiences right at their fingertips.
Amenity Management Systems: Simplify operations for everything from room service to facility bookings.
Live Chat Tools: Offer instant support and answers.
Social Media Management Tools: Keep customer interactions engaging and organized.
Integrating these strategies will not only improve your customer service but also deliver unforgettable customer satisfaction, loyalty, and, ultimately, your bottom line. Ready to take the next step? Book a consultation with our experts.
Conclusion
To wrap up everything we've discussed, customer satisfaction and experience are at the heart of hospitality. Retaining customers is more than just keeping them around—building strong, long-lasting relationships and consistently meeting their evolving needs. By understanding their pain points and offering personalized solutions, you can inspire loyalty and drive progress. With the right technology and continuous improvement, your business can stay ahead, let go of what no longer serves you, and keep growing.
At Intellectsoft, with over 17 years of experience in software development, our expert team is ready to help. We create everything from mobile apps to full-fledged portals and systems, leveraging the latest technologies like AI, Cloud, and Machine Learning. With deep experience in the hospitality industry, we’re here to craft personalized solutions that bring your business unforgettable customer experience and retain your valuable clients.
Ready to double your revenue and level up your customer retention strategy with personalized technology? Contact our experts, and we look forward to working hand in hand with you to build or revitalize the perfect app or system for you.
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