Boosting Efficiency with Offshore Staff Augmentation: Benefits and Best Practices

Despite significant tech layoffs over the past two years, IT talent remains in short supply. Recent data shows that 70% of technical workers received several job offers before accepting their current role, while 10% juggle multiple jobs. This makes it particularly challenging to quickly find skilled professionals, especially when seeking rare expertise. 

Offshore IT staff augmentation offers a practical solution to this issue. This model enables businesses to rapidly onboard skilled tech professionals without undergoing lengthy and costly recruitment. Additionally, it helps reduce costs and provides access to high-level expertise while allowing companies to maintain full control over their IT project.

This article will explore how offshore team augmentation works, when it’s most beneficial, and how to select a trustworthy staff augmentation provider.

Key takeaways:

• Offshore staff augmentation allows companies to significantly reduce costs by hiring skilled professionals from regions with lower salary expectations. 
• The model provides access to a global talent pool, making it easier to find professionals with niche or highly specialized skills, such as AI.
• Offshore team augmentation simplifies human resources processes by handling recruitment, payroll, benefits, and legal compliance. 
• By leveraging IT professionals across different time zones, companies can achieve near-continuous productivity. 

Understanding offshore staff augmentation 

Offshore IT staff augmentation is a flexible staffing model where companies hire one or more IT specialists from an external offshore staff augmentation company to augment the existing team, bringing the skills they need to the table. Typically, these tech professionals will stay with the company until a specific job or task is completed. During that time, they will commit to the project completely, much like the remote full-time employees, becoming a part of the team and reporting to company’s managers.

Offshore staff augmentation services differ from traditional IT outsourcing services, where an entire project is handed over to an external offshore development team. In staff augmentation, the company maintains control over the project and executes it in-house while relying on qualified professionals provided by a vendor only to handle specific tasks or functions. 

The main benefits of offshore IT staff augmentation

Hiring experts through offshore staff augmentation provides numerous benefits. Whether you are launching custom solution development or need a specific skill set for an ongoing project, this model offers a flexible and efficient way to quickly access the expertise you require. Let’s zoom in on the key advantages.

Cost-effectiveness

With IT salaries differing considerably across countries and regions, hiring offshore IT professionals can slash costs. For example, a software engineer in the US takes home an average of $161,000. In Poland, tech professionals with the same experience and qualifications earn a median salary of around $45,000. 

Therefore, augmenting the team with a Polish developer can save you around $115,000/year. If you need, let’s say, five engineers for a project, multiply these savings by the number of people: $115,000 x 5 = $560,000/year. That’s how much you can save by using offshore IT staff augmentation instead of hiring new team members in the US.

Global talent pool

With offshore staff augmentation, the choice is no longer limited by the talent available in your country. You can hire skilled professionals from anywhere in the world. That is especially beneficial when you need highly in-demand or specialized skills, like GenAI implementation. 51% of companies in the US and the UK are struggling to fill the roles that require in-depth knowledge of AI. By expanding the search to a different region, such as Central and Eastern Europe (CEE), with its combined talent pool of 2 million people, you can find the experts you need much easier and faster. 

Full control over the development process

Some companies hesitate when considering offshore teams, worried about losing control over tech-related business operations. However, with the staff augmentation, this concern isn’t relevant. Unlike working with an outsourcing company, where you hand over all the management, this cooperation model lets you keep the reins.

With offshore staff augmentation, you stay in control of the entire development process. The offshore employees and professionals joining the team will follow your methodologies and adhere to your quality standards. The dedicate offshore staff will work exclusively on your project, report directly to your managers, and follow company’s culture. 

Scalability and flexibility

In a complex, long-term project, the needs will likely change. However, hiring and firing in-house employees might not be an option because of labor shortages, the cost of severance packages, and the adverse effects of layoffs on team morale. With offshore staff augmentation, companies can avoid all these problems. New team members will stay with a company for as long as businesses need their input. After that, the staff augmentation provider will reallocate them to other projects. 

Similarly, your offshore staff augmentation partner can deploy more professionals when needed. They can be sourced from the provider’s extensive network within short notice. For example, we at Neontri have access to a vast talent pool of 350K qualified professionals, allowing us to find matching candidates within 24-72 hours.

Expertise in cutting-edge technologies

Software developers working for staff augmentation providers must continuously refine their skills and stay updated on technological advancements as they work on various projects with unique challenges. This often translates into rare expertise, particularly in innovative solutions and cutting-edge technologies, which can be challenging to find elsewhere. 

When businesses hire these professionals through offshore IT staff augmentation, they can offer fresh approaches to tackle the project challenges and share advanced practices with the in-house team, leading to productivity gains that extend beyond their time on a project.

Accelerated development cycles

When you commission offshore staff augmentation services, the development cycles will likely shorten. This doesn’t mean the project will be rushed. The acceleration happens because you gain access to the expertise you need. Additionally, professionals from staff augmentation providers often have diverse experience, allowing them to complete tasks more efficiently without compromising quality.

Around-the-clock productivity

Time zone differences might sometimes be perceived as a challenge in offshore collaborations. However, this can also be a source of productivity gains. Think of a remote developer in Poland completing their tasks in their local daytime while it’s still night in the US. By 9:00 am New York time, your in-house team will have the portion of code to move further down the pipeline. Besides, the remote developer will be available for the overlapping hours to address any issues or jump on a quick call.

A team dispersed across time zones is technically working 24/7, delivering tasks at a speed that wouldn’t be possible otherwise. Even though this requires certain management efforts, it can give companies a competitive edge.

Streamlined HR processes 

External professionals augmenting your staff are like your core team members, except you don’t have to handle their recruitment and payroll. You simply pay the augmentation provider the agreed-upon amount, which usually includes the developers’ salaries plus the vendor’s fee. Alternatively, the arrangement may follow the time-and-materials model, where you pay for the actual hours worked by the remote staff.

At an individual level, the offshore staff augmentation company manages employee pay, benefits, and taxes, relieving your in-house HR team of these responsibilities. This allows you to onboard as many IT specialists as needed without adding strain to the recruitment or admin processes.

Mitigated legal risks and compliance issues

Legal risks are much lower when companies work with offshore developers. That’s because the provider handles all legal and compliance requirements for the augmented professionals, such as employment contracts, taxes, and adherence to local labor laws. 

Moreover, staff augmentation providers typically sign strict service and NDA agreements with their clients. Such agreements clearly outline roles, responsibilities, and liabilities, increasing transparency and mitigating the risk of disputes.

Ideal scenarios for offshore IT staff augmentation 

Offshore staff augmentation is a preferred engagement model for many businesses. However, there are situations when it’s particularly effective. Here are the four most common scenarios when companies can benefit from cooperation with offshore developers the most.

Enhancing in-house capabilities 

Offshore staff augmentation is a great option to enhance in-house development capabilities to complete an ambitious project. For example, if a you need IT skills that the existing team members don’t have, but you can’t guarantee you’ll have work for these new people after the project’s completion. Hiring them as full-time in-house members only to fire them several months later feels morally wrong, let alone impractical and costly. In this scenario, IT staff augmentation provides a flexible, efficient, and ethically sound solution.

Expanding a team rapidly for time-sensitive projects

Commissioning offshore staff augmentation services is also advantageous when you have the required expertise in-house but need additional team members to meet tight project deadlines. Imagine discovering a unique market opportunity that requires rapid action before competitors can develop similar solutions.

With staff augmentation, companies can bypass the lengthy recruitment process and avoid spending months searching for qualified tech professionals. An outstaffing vendor can quickly provide pre-vetted, skilled professionals who are prepared to dive into project tasks immediately after the agreement is signed. 

Moreover, experienced staff augmentation providers streamline the process by shortlisting only the most suitable candidates so you don’t waste time interviewing developers who are a poor fit for requirements. A Neontri, 67% of the candidates we suggest get immediately approved by the clients.

Acquiring niche or specialized skills

Staff augmentation is ideal when businesses need developers with specialized skills that are challenging to source domestically or are highly in demand. Hiring such professionals in-house can be tricky—they are hard to find and rarely available. Plus, if you only need them for a specific project, full-time employment makes little sense and leads to unnecessary costs.

Offshore staff augmentation gives businesses access to a worldwide pool of software engineers, enabling you to find the right expert quickly. You can bring them on board for just the duration of the project, avoiding the long-term commitment and the complexities of traditional hiring. 

At Neontri, we frequently help companies from the US and Western Europe find IT specialists who are difficult to recruit locally. Thanks to our extensive pool of high-quality professionals, we can provide matching candidates within 72 hours.

Leveraging senior-level expertise cost-effectively

Many projects require senior-level expertise, but securing experienced tech professionals often involves navigating high salary requirements and intense market competition. This is where the IT staff augmentation model comes in.

By hiring senior tech experts from regions with a lower cost of living, you can meet their salary expectations without breaking the budget. This approach allows to access top-tier expertise at a fraction of the cost you’d incur locally.

For example, senior developers in Poland earn 3-4 times less than their colleagues in the US. Thanks to the lower cost of living, they still enjoy a comfortable salary and a comparable quality of life. This makes offshore staff augmentation a true win-win solution: you gain access to top talent, and the IT professionals receive fair compensation for their skills.

Offshore staff augmentation vs. dedicated team: Choosing the right model

Up to this point, we’ve mostly focused on scenarios where companies need one or a few experts for a project and how offshore staff augmentation can help. But what if the project requires a full-time dedicate offshore staff? In that case, businesses might consider the dedicated team model as an alternative. 

Here’s how these options differ. IT staff augmentation involves adding specific talent or skills to the team, with companies retaining complete control over the project. A dedicated team, on the other hand, is about assembling an entire team with all the necessary skills to deliver a project.

In other words, staff augmentation assumes a company’s in-house team continues working on the project while getting support from external specialists. In the managed team model, businesses oversee the project execution, but the vendor assembles the team. Like staff augmentation, dedicated team members work exclusively for one client at a time, becoming the remote department.

We summarized the key differences between these two options in the table below.

Selecting a reliable offshore staff augmentation partner: Critical factors 

Not all IT staff augmentation companies offering offshore services can meet specific needs in terms of expertise availability and service quality. We’ve outlined the key factors to consider when making the choice:

• Robust security protocols and data protection measures. Ask service providers what actions they take to keep data safe and ensure employee compliance.
• Strategic geographical location. Look for companies located in a stable business, political, and legal environment. Explore the size of the local IT talent pool and learn about the cost of living and offshore developer salaries. 
• Proven track record. Check the providers’ ratings and client testimonials on third-party platforms like Clutch. Explore their case studies or contact the provider’s past clients directly for feedback.
• Resource availability. Investigate the number of specialists in the provider’s talent pool, assessing the breadth of expertise and the range of seniority levels available. Also, check how quickly the vendor can provide the necessary talent for your project. 
• Talent retention. Try to find out the outsourcing company’s employee turnover rate, as the augmented staff will work for you as long as they work for them.
• Infrastructure and facilities. Learn about the provider’s working conditions, including workstations, equipment, and network infrastructure.
• Flexible delivery models. Ask how flexible the potential vendor is if the project needs change and how quickly they can add talent if you want to expand further. 

This checklist will help you evaluate potential it staff augmentation providers and narrow down options. By methodically asking the right questions, you’ll be able to create a complete profile for each potential vendor. For example, Neontri’s profile will look like this:

• The company fully complies with EU data protection regulations and adheres to the highest security standards.
• It is located in Poland, which implies the largest number of IT professionals in the CEE region, political stability, and strong contract enforcement. The country also gained 81.1 points for ease of doing business and ranks #13 out of 113 nations for English proficiency.
• With 10+ years in business, Neontri completed numerous successful projects across the banking, retail, and fintech software development.
• The technology stack includes JavaScript, React, Angular, Vue.js, Bootstrap, Java, Python, Ruby on Rails, PHP, C#, Node.js, Swift, Objective-C, Java, and Kotlin.
• 98% employee retention rate.
• Thanks to access to a talent pool of 350K qualified professionals, Neontri can quickly scale the team up or down as needed.

Best practices for maximizing offshore staff augmentation success

Offshore IT staff augmentation offers a powerful solution to bridge skill gaps, scale teams quickly, and stay ahead of the competition. However, there are a few steps to take to integrate augmented talent into your team successfully:

• Establish clear communication guidelines. Let the new team members know who to contact with any issues or questions about the project. Clarify the team’s preferred communication style and channels.
• Set SMART goals and KPIs. Establish specific, measurable, achievable, relevant, and time-bound (SMART) goals for the offshore team to monitor if everyone’s on track. Define KPIs to evaluate the team’s performance and communicate them to new team members.
• Implement project management tools and methodologies. Rely on project management and software development collaboration tools like Jira, Trello, or Asana to manage tasks, monitor deadlines, and track milestones. Leverage project management methodologies, such as Agile and Scrum, to further streamline the software development process.
• Foster a cohesive company culture. Set the same expectations for existing team members and the new employees. Introduce the augmented staff to your internal policies and roles. Organize an onboarding meeting and invite them to your online team-building activities to create a sense of belonging.
• Implement regular performance reviews. Review the team’s progress to ensure it stays on track and introduce continuous feedback loops to make quick improvements.

Final thoughts: Leveraging offshore staff augmentation for competitive advantage

Offshore IT staff augmentation is a fast and cost-effective way to enhance IT capabilities. It gives companies access to a global IT talent pool, allowing them to quickly find the experts they need while maintaining full control over the development process. Staff augmentation can significantly improve IT project efficiency, whether businesses are expanding their in-house team within a tight deadline, seeking rare tech expertise, or looking for senior professionals with a limited budget. 

Contact Neontri to learn more about staff augmentation services.