Why Choose Nearshore Staff Augmentation?
When you can get your own nearshore software team in 2 months?
Basically the same, but better:
- Silicon Valley-caliber team from 0 to 100 developers in 1 year
- Up to 40% savings compared to traditional outsourcersย
- Zero buy-out cost & no hidden fees
- Employer of Record serviceโour compliant employment solutionย
- No intermediary in team management, your corporate culture
Alcor is Disrupting the Traditional Outsourcing Models to Meet the Evolving Requirements
Can a Nearshore Staff Augmentation Provider Guarantee
2.5 years
average tenure of developersCultural alignment
with your company valuesPricing transparency
no hidden or buy-out feesLegal & compliance
and other needed operational supportExceptional dedication
itโs literally your own teamLong-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
- thereโs no need for recruiting: itโs 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 teamโs augmentation as a model, remote software developers donโt 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 vendorย
- 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 donโt require perfect team loyalty and donโt 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.ย
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.ย
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.ย
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 probationย
- 2.5 years โ 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 complianceโwe manage everything from onboarding/offboarding and legal navigation to monthly payroll and benefits management.ย
Need operational support? Alcorโs 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,โevery 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 recordโno 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
- Maximized cost savings Your own development team plus office costs 40% cheaper. Because you get no buy-out fees & markups.
- Dev team like an in-house one Build a development team in one of the LATAM locations and reap the benefits of instant communication and productive teamwork.
- Own branded office & rules Upon request, you get your own physical office for ideation, innovation, and growthโwithout intermediaries.
- Data security and IP rights under control With direct agreements, you fully own your product and its source code, keeping unique expertise in-house.
- Easy investment attraction Establishing your own R&D center with a dedicated team of software developers will enhance your appeal to investors.
Nearshore Staff Augmentation
- Hefty buy-out fees Want to retain an augmentaed team? Brace for hefty buy-out feesโjust one developer could set you back tens of thousands!
- Hurdles in team coordination Managing dispersed external programmers is tough, often leading to delays, missed deadlines, and possibly lower-quality results.
- No corporate culture & employer branding An extended team works under your staff augmentation partnerโs brand, leaving no space for your culture and policies.
- Shared intellectual property You share your IP with developers that come and go to other projects. As a result, the source code is never between you & the team only.
- Difficulties getting investment Securing investment is tough with nearshore team augmentation. You need an in-house team to be qualified as an โinvestment materialโ company.
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.
Alcorโs 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.
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 teamโs tech expertise for lower costs. However, this model is short-lived, so if youโre 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, youโre 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 youโre 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.