Why U.S. Companies Are Turning Nearshore IT Staff Augmentation

It’s no surprise US companies are looking to Nearshore talent solutions when today’s staffing reality looks like the following:

• 73% of recruiters said candidates negotiated for increased salaries in 2022
• 52% of hiring managers say accessing talent with the proper skills is a significant challenge
• 40% say that sourcing talent is the most challenging phase of the recruitment process
• 18% of hiring managers will search for talent if they can’t find it locally
• 50% of hiring managers plan to use staffing firms more in the following 5 years

That’s why more American companies than ever are looking for an established Nearshore IT staff augmentation partner with a high-quality talent pool that’s a good match for their time zone, work culture and language.?

But US companies aren’t only turning to Nearshore talent to address staffing challenges; they’re also making the switch for the benefits that Nearshore staffing delivers.

To be precise, American businesses are turning to Nearshore IT staff augmentation for 8 things they’ll GAIN and 8 things they’ll AVOID.

WHAT THEY GAIN

The 8 things US companies are gaining through Nearshore IT staff augmentation are all about savings, resilience, strength, speed and remaining competitive.

#1: Lower Wage-Related Costs

IT outsourcing has traditionally been linked to lowering labor costs.?

Nearshore staff augmentation, in particular, offers companies the sweet spot between Offshore and Onshore outsourcing: wages aren’t cut-rate like Offshore but are still significantly less than Onshore.?

That means US companies can expect labor savings of 30 to 40%.

NOTE: Cost control is just one of 7 key factors to consider when determining if Onshore, Offshore or Nearshore staff augmentation is right for you. Learn more by clicking here .

#2: Flexibility

Nearshore staff augmentation gives companies elastic team capacity. That means faster talent acquisition and scaling.?

As long as you have an established Nearshore IT staff augmentation partner with a high-quality talent pool, you can increase the size of your development workforce as needed with on-demand talent.?

#3: Reduced Attrition

Since outsourced talent are not employees, they can be added to and removed from your internal team without ever driving up your attrition numbers.?

That makes it easier for companies to achieve retention-related KPIs, whether those are public or private metrics.

#4: Faster Project Turnaround

Nearshore staff augmentation enables American companies to quickly and easily add the time of others to their existing teams.?

That means they can do more faster, shorten their time to market, and increase their efficiency.

#5: Top Talent

Having a high-quality Nearshore IT staff augmentation partner gives companies the competitive advantage of access to large pools of highly specialized talent.?

With superior expertise and training comes superior performance and the agility to adapt to today’s ever-changing competitive landscape.

#6: Fresh Perspective

Experienced Nearshore talent will have worked on many different types of IT development projects across a wide range of companies and sectors.

That means you will often benefit from the fresh perspective and “new eyes” they bring to your projects, whether that’s from the suggestion of new approaches or from spotting weaknesses that have been overlooked.

#7: Real-Time Integration

Since Nearshore talent works in the same or similar time zones, US companies can include that talent in their regular Scrum teams, unscheduled meetings, and real-time project team oversight and reporting.

#8: Superior Expertise Sharing

Nearshore IT staff augmentation also makes it possible to benefit from paired programming in real-time.?

That means US companies can merge outsourced industry expertise with their team’s internal knowledge, which is often the most efficient and cost-effective approach to expertise sharing.

WHAT THEY AVOID

The 8 things US companies are avoiding with Nearshore IT staff augmentation enable them to increase efficiency while saving time and money.

#1: Time Lags

Nearshore outsourcing avoids the time lags of Offshore outsourcing.?

By tapping talent that’s located in the same time zone or similar time zones, US companies have similar potential for real time collaboration as with Onshore outsourcing.

#2: Poor Communication?

Since Nearshore talent is from nearby locations, companies avoid the communication challenges of Offshore outsourcing.?

Simply put, sharing a similar language, work culture and work ethic makes a world of difference.?

#3: Deductions & Payroll Obligations

Nearshore IT staff augmentation means gaining access to top talent while avoiding the costs of employee-related deductions or payroll obligations.

In other words, companies only pay for the WORK, NOT for having a WORKER.

#4: Benefits & Employee Compensation Obligations

It’s true that benefit plans and pensions are attractive incentives when recruiting talent, but they’re also very expensive for US companies.

With Nearshore IT staff augmentation, the company and the talent understand and agree that those incentives aren’t necessary.?

That translates into significant savings for companies over the long term.

#5: Recruiting

With Nearshore outsourcing, it’s like companies are also outsourcing the recruiting process.?

That’s because your staff augmentation partner handles recruiting from their own pool of talent.?

That’s a big deal, since:?

• the average recruitment time for tech/software developers is from 24 to 40 days
• the average cost per hire across all non-executive positions is $4,683
• the average cost per developer hire is 12% of their annual salary

That means US companies get access to hand-picked Nearshore talent while avoiding the cost, time and effort that recruiting normally involves.?

#6: Training

With Nearshore outsourcing, it’s also like you’re outsourcing the training process.

In some cases, the talent takes it upon themselves to get trained. In other cases, your staff augmentation partner might facilitate having their talent trained.

Either way, the talent comes to you with the needed training in place at no extra expense or effort to you.?

Whether your technology stack includes the likes of React, Node, Mulesoft, Salesforce, or any other leading tech solution, you simply request the certifications or qualifications you need while leaving the training costs and concerns to others.

#7: Post-Hire HR

Since Nearshore staff augmentation talent aren’t employees, companies avoid paying their HR teams to manage post-hire HR activities.?

That includes everything from initial onboarding to ongoing performance management.

#8: Office Space & Equipment?

Since working with Nearshore IT staff augmentation involves using remote, non-employee talent, companies reduce their costs related to office space and equipment purchasing and wear-and-tear.

SUMMARY & NEXT STEPS

US companies understand better than ever that Nearshore IT staff augmentation helps them gain 8 valuable business benefits while avoiding 8 costly business disadvantages.

The key to success, however, is having an established Nearshore IT staff augmentation partner with a high-quality talent pool that’s a good match for your time zone, work culture and language.?

At Launchpad, our same-time-zone Latin America team of experts are your answer to gaining the benefit of world-class tech talent while saving money and increasing performance and agility.

“Launchpad Technologies Inc. has been excellent in providing high-quality resources, that enable the client to improve their efficiency and workforce. The internal stakeholders are particularly impressed with the team's unparalleled onboarding process and open communications.”

Shashi K. Puttaswamy, Senior Manager, Franchising Solutions Company

Contact Launchpad to learn about how we can support you in your technology efforts. We’ll work with you to determine which solutions are the right ones for you and your team.

Email: [email protected] or call anytime at 1 (800) 326-0188

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