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Considering a new staff model doesn’t sound so out of line if you think about the changes derived from the pandemic and the new reality of market talent with high migration and low retention percentages. In terms of costs, staff augmentation is an ideal option to fill positions while reducing expenses for highly specialized remote teams. Keep reading if you want to also benefit from these savings.

Cost per Hire of Specialized IT Staff

Old-fashioned business models rely on IT staff that implies major costs given the above expenses related to salary. Instead, in modern models, there’s a possibility of a hybrid approach of outsourced IT support. In this, you can scale your operations based on strategic resources and budget reallocation.

Hidden costs of hiring can include employee turnover, overtime, margin error, and taxes, according to the country’s legislation. In fact, the U.S. Small Business Administration (2019) said that an employee can cost you about 1.25-1.4 times the salary you offer them. This has given rise to workers’ compensation, training, health insurance coverage, and leave, among the most common ones. That’s why hiring per hour represents an opportunity to save on costs while you have top talent on your team.

For IT staff, the most demanding positions are software developers and engineers, data analysts, automation engineers, QA engineers, scrum masters, and IT project managers. The cost per hire also relies on geographic location:

  • The U.S. hourly rates are between $65 and $150.
  • In Asia, hourly pricing is around $50 to $75.
  • Eastern European rates per hour are between $35 and $75.
  • Africa’s average price per hour is between $25 and $75.
  • In Latin America, these rates go from $25 and $60 per hour.

In this scenario, one of the major advantages of staff augmentation is the extended team you’ll have to work with. Then, you’ll pay for the services and have direct management of the talent, but with reduced costs. If you choose a reliable IT partner, you’ll likely find performance reports, regular communication, and agile methodologies in outsourced IT support services. At Advancio, we build a scalable relationship with our clients by providing innovative and transparent processes alongside delivering strong results with this strategy.


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Rate Advantages of Outsourced                      IT Support

In terms of costs, there are some reductions that remote teams can make by investing in more areas of opportunity. This encompasses:

Reduced costs on payroll vs. counting on highly skilled talent

Save money on talent acquisition and employee compensation as well as career development. Instead, you can invest it in demanding projects or areas that need more specialization.

Minimized costs for staff vs. resource reallocation

A reallocated budget also lets you explore opportunity areas to scale your business.

Cut down costs for process implementation

With trained remote teams, you have an accuracy rate that lessens the adaptation time needed to integrate new talent, methodologies, and processes.

Diminish the cost of implementing modern technologies and systems

Counting on an IT partner with a fresh perspective gives you access to the latest tech updates. It also expands your vision and interaction with them. Thus, you are reducing the costs of using these technologies through third parties rather than purchasing them.

Factors that Influence Staff Augmentation Prices

When you’re about to start a talent acquisition process, it’s important to understand some of the considerations that affect the pricing of staff augmentation services. While hourly hiring can be perceived as higher, talent has stronger employment benefits associated with payroll as an outsourced IT support than as just a freelance modality. In addition, you’ll have a higher rate of partnership completion given provider’s guarantees. This can be related to talent services to meet accuracy, timing, and quality of deliveries.

Another factor that influences the cost per hire of staff augmentation is the type of professionals and their expertise. Counting on this outsourced IT support could mean having access to a global pool of tech talent if your IT partner has that presence. With this in mind, costs can significantly rise. However, you’ll integrate top and highly skilled talent into your team for a lower price than a regular contract.

Company operations are also part of service pricing because they cover expenses that you can avoid counting on remote teams. These include training, software licenses, physical spaces, resources, and payroll benefits, among other things.

Finally, the pricing models for staff augmentation include payment terms, talent searches with high matching rates, and partnerships with additional considerations. But, as you can see, this is more advantageous and cheaper than hiring staff.

Counting on staff augmentation services is easier than you might think with us. Advancio provides you with consulting, IT outsourcing, and an advanced range of matched talent. Talk to an IT Specialist and save money in areas where you could be investing in your business.