Why Choose Nearshore Staff Augmentation?
When you can get your own top-10% nearshore software development team in 2 months?
Basically the same, but better:
- 30+ elite engineers in 3 months, 100+ in a year
- Up to 40% cost savings
- No-entity 100% compliant employment
- Fully managed back-office: payroll, benefits and more
- No buy-out costs or hidden fees
- Your direct management and corporate culture
Mexico
Colombia
Argentina
Chile
Poland
Romania
Ukraine
BulgariaNearshore Staff Augmentation Can’t Compare to Your Own Software Team
Can a Nearshore Staff Augmentation Provider Guarantee
2.5 years
average tenure of developers
Cultural alignment
with your company values
Pricing transparency
no hidden or buy-out fees
Legal & compliance
and other needed operational support
Exceptional dedication
it’s literally your own team
Long-term partnership
shared responsibility & commitmentKey things about Nearshore Staff Augmentation
Advantages
Nearshore IT staff augmentation is a gainful short-term solution because:
- you engage top-tier engineers in your project through an IT outstaffing partner without the need to set up your own legal entity
- there’s no need for recruiting: it’s a quick temporary fix to supplement your team capacity
- with team extension, you can replace developers on the fly and maintain control over team management
- you can optimize software development timeframes enjoying 1-2 hour time difference with Latin American countries like Mexico or Colombia
Challenges
Challenges
However, beware of nearshore software team augmentation pitfalls:
- when it comes to tech team’s augmentation as a model, remote software developers don’t see you as their real employer, but rather as another passing client; as a result, they are not as loyal to your product as in-house or R&D devs
- if you decide to hire the tech gems in your team, you will have to buy them out from your nearshore team augmentation vendor
- the staff augmentation model poses IP rights risks and may cause data security issues due to the data shared with the third party
- with no onboarding envisioned in nearshore staff augmentation services, integrating the augmented team within your in-house squad is no mean feat; besides, work culture mismatch is still likely
Comparison with alternatives
To sum up, nearshore software staff augmentation is ideal for short-term projects, especially if you don’t require perfect team loyalty and don’t mind delegating some control to your provider. Besides, you should already have a small in-house team to augment it. In this regard, outsourcing is more suitable for non-tech companies with no development teams onboard, although it does lose to staff augmentation regarding client involvement.
Managed services and a dedicated team are comparably a long-term cooperation, although managed services, unlike IT resource augmentation, are focused on consulting and demonstrate higher loyalty levels. A dedicated team, on its side, has the same client-control approach as IT resource augmentation services but is more suitable for long-term projects and provides moderately loyal software engineering specialists.
Another viable alternative to nearshore IT staffing is a software R&D center. It is ideal for a long-standing partnership, offering a flexible budget, tailored specifically to your product, and comes with full client control and team commitment.
What is your own nearshore software development center
Your own nearshore R&D center is a turnkey solution for building development teams from 0 to 100 Silicon Valley-caliber programmers within a year, in vibrant locations like Mexico, Colombia, Argentina, or Chile.
Your software R&D team building starts with full-cycle tech recruitment. Our 40 tech headhunters make the process sleek and smooth by guiding you through the tech hiring market, crafting ideal candidate profiles and appealing EVP, pre-screening and interviewing applicants, and working with offers/counteroffers. Here is how we ensure perfect fits:
- 15% chance of closing the vacancy from the first CV
- 2-6 weeks to close a vacancy
- 8 CVs to get to 1 accepted offer
- 80% of candidates are approved by clients
- 98.6% of our hires pass probation
- 2.5 years — the average tenure of our hires
Beyond tech recruiting, our team provides Employer of Record services to make your nearshoring to Latin America stress-free. Skip the hassle of setting up your own legal entity and dealing with compliance—we manage everything from onboarding/offboarding and legal navigation to monthly payroll and benefits management.
Need operational support? Alcor’s R&D all-in-one approach has multiple cherries on top: we take care of your nearshore office lease, equipment procurement, IT infrastructure setup, employer branding, and even WFH support,—every operational detail managed on your request.
Better than a Third-party Nearshore Staff Augmentation
Alcor is your tech expansion accelerator for global growth
- From 0 to 100+ engineers in one key talent pool
- Employer of record—no entity compliant employment
- Comprehensive in-country support
- No buy-out or other hidden fees
- Your team from day one. Your management. Your culture.
Own R&D Center vs Nearshore Staff Augmentation
Own R&D Center
- Silicon Valley-caliber talent We recruit 30+ elite senior developers in 3 months. All decisions regarding the team are up to you.
- Transparent pricing Detailed invoices help you be in control of your finances. Plus, your tech R&D team is x2 more affordable than an external one.
- Your team & branding You get a tech team with shared values for innovation and growth—90% retention rate & an average tenure of 2.5 years.
- No setup & buy-out fees No setup fee is needed to start building your software R&D team. Plus, there is no buy-out process—your team now, free insourcing after.
- Intellectual property under control With direct agreements, you fully own your product and its source code, keeping unique expertise in-house.
Nearshore Staff Augmentation
- Junior/middle-level talent You can’t control the quality of talent. Plus, with planned moves to new customers after 1 year, your A-players will be snatched away.
- High markups Some providers charge up to 50% of talent compensation to earn more without the client knowing about it.
- Not your brand & practices Developers work under your provider’s brand. Thus, there’s no room for your corporate culture, policies, and direct oversight.
- High setup & buy-out fees Most vendors require contractual & financial obligations first. Then, you pay 20% of a developer’s annual compensation in buy-out fees.
- Intellectual property risks IP rights over your product initially belong to developers of your provider. You get minimum security and a tedious transfer process.
Companies Scaling with Alcor
Alcor is a reliable partner that meets our hiring needs. We finally hired experienced software engineers in Eastern Europe with strong tech skills and business acumen. Account Managers are awesome!
With Alcor’s all-in-one solution, we got a software R&D office with 15 senior PHP devs and a compliant operational coverage. I really appreciated their transparent pricing structure and deep expertise.
We interviewed a lot of EoR platforms and companies, but Alcor was the only one that provides a combo package of EoR and Recruting offerings. Alcor helped us build a full stack team in 1.5 month.
We wanted to switch from our outsourcing provider, and Alcor has become really game-changing for us. Within a mere 6 months, we got a fully-fledged team of 30 engineers in our own R&D office.
Alcor’s R&D solution eclipses full-cycle recruitment, EOR service, and operational support for our offshore team. Their ‘all-in-one place’ approach is far more cost-effective than I could’ve imagined.
I value their commitment to going the extra mile. We evolved from an outstaff project into an independent company, and Alcor’s support was crucial. They hired and ondoarded 15+ professionals for us.
Thanks to Alcor, we hired four engineers and a designer that strengthened our team. Beside stellar recruitment, Alcor flawlessly handled our payroll. Their approach was seamless and swift.
Alcor closed our 4 QA positions in a month and more than doubled the team in a year! We chose Alcor because of their communication style, cost, scope of services, and ideas to help us be successful.
Expanding our engineering team outside the US with Alcor was a game-changer! They found 15 talented developers and provided seamless EOR & operational support. Great responsiveness to our needs!
Alcor’s flexible model helped us scale from 0 to 30 devs in a year first, and then to 50! No buy-out fees, seamless hiring, and top-tier talent. A hassle-free way to grow without setting up a subsidiary!
FAQ
1) Is it beneficial to use nearshore staff augmentation services?
You will benefit from nearshore staff augmentation services in Latin America if you seek to boost your team’s tech expertise for lower costs. However, this model is short-lived, so if you’re looking for long-term product-based models, consider other options, such as a software R&D center.
2) What are common challenges or pitfalls of using nearshore team augmentation?
The main flaws of IT staff augmentation lie in cooperation through a third party. Since a nearshore augmented team works for your provider, they may see your project as a passing one and not feel loyal to your particular task. This may result in a mediocre product quality and potentially higher expenses. Besides, you’re less engaged in team management and will have to pay buyout fees should you decide to hire developers.
3) What are the alternatives to nearshore staff augmentation?
A software R&D center is your all-in-one solution to hire Silicon Valley-caliber tech talents, manage payroll & accounting, navigate legal & compliance, get equipment procurement, and lease an office with your reliable partner like Alcor. Other models include software outsourcing, managed services, and a dedicated team that come with their pitfalls. All of the mentioned cooperation models can be performed in both nearshore and offshore locations.
4) Which location is the most ideal for nearshore product development?
If you’re an executive of the tech business in the US, Latin American powerhouses are worth a look. For instance, Mexico offers access to 700,000 tech specialists, ranks 3rd in the region for data science and tech skills, boasts advanced tech infrastructure, an A4 business environment, and overlapping time zones with the US. In general, nearshoring to Mexico or other LATAM countries can slash your labor expenses by up to 50%, making it a cost-effective approach to scale your tech team and optimize budget.