Why Choose Offshore Staff Augmentation?

When you can get your own offshore software team in 2 months?

Basically the same, but better:

  • Silicon Valley-caliber team of 20+ senior developers in 3 months 
  • Up to 40% savings compared to traditional outsourcers 
  • Zero buy-out cost 
  • Employer of Record service – our compliant employment solution 
  • No intermediary in team management

    IT Staff augmentation is just a transition stage

    We offer a turnkey custom-built solution for your needs — your own software R&D center


    Alcor is Disrupting the Traditional Outsourcing Models to Meet the Evolving Requirements

    Valley Talent for 40% less costs
    All-In-One single place for your needs
    No Buy-Out insource for free

    Can an Offshore 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 & commitment

    Key Things about Offshore Staff Augmentation

    Advantages
    Challenges
    Comparison with alternatives
    What is software R&D center

    Advantages

    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 hiring: 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

    Challenges

    However, beware of offshore staff 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 software 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 team 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, IT 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 long-term, although managed services, unlike team augmentation, are focused on consulting and demonstrate higher loyalty levels. A dedicated team has the same client-control approach as staff augmentation services but is more suitable for long-term projects and provides moderately dedicated software engineering specialists. 

    Another viable alternative to IT team augmentation that is long-term, offers a flexible budget, is tailored only to your product, and comes with full client control and dedication is a software R&D center.

    What is software R&D center

    Your own R&D center is a one-stop-shop turnkey solution for hiring from 0 to 100 programmers within a year. 

    Your software R&D starts with IT recruitment, and we hold to it to rigorous standards:

    • 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
    • 3-month warranty to substitute a candidate

    Alcor’s full-cycle IT recruitment in LatAm and Eastern Europe is sleek and smooth: we consult you on the tech hiring market, draw up ideal candidate profiles, promote your employer’s brand in software engineering communities, and follow with recruiting well-matched candidates. Your feedback is worth its weight in gold, so we invite you to all tech assessments & interviews and send out hiring updates every week. 

    Also, we provide EoR services that cover accounting, payroll, legal & compliance. Need operational support? Alcor’s R&D all-in-one approach has multiple cherries on top: we take care of your offshore or nearshore office lease, equipment procurement, IT infrastructure setup and even WFH support, — all operations managed

    Better than a Third-party Team Augmentation

    Alcor is an all-in-one place to establish and run a turnkey software R&D center:

    • Employer of Record support — no need to set up your legal entity
    • From 0 to 100 software developers in one key talent pool
    • Establish your corporate culture with your own team. No intermediary
    • No buy-out or other hidden fees
    Book a call

    Offshore Staff Augmentation vs Own R&D Center

    Staff Augmentation

    1. Hefty buy-out fees Want to retain an augmentaed team? Brace for hefty buy-out fees—just one developer could set you back tens of thousands!
    2. Frequent team changes Software engineers for offshoring or nearshoring teams are contract-loyal and won’t go the extra mile to ensure your product’s long-term success.
    3. Provider-centric teams An augmented team will report only to your vendor, treating you as the “secondary” employer.
    4. Risk of data leakage If your augmented development team provider doesn’t protect sensitive info, it leaks, and you lose valuable expertise when the contract ends.
    5. Barrier to investment attraction Securing investment is tough with team augmentation. You need an in-house team to be qualified as an “investment material” company.

    Own R&D Center

    1. Maximized cost savings Your own development team plus office costs 40% cheaper. Because you get no buy-out fees & markups.
    2. Long-term commitment Product development and the feeling of ownership draw developers like moths to a flame. Hence, more loyalty.
    3. Your team, your rules You get your team for ideation, innovation, and growth—without intermediaries.
    4. Data security and IP rights under control With direct agreements, you fully own your product and its source code, keeping unique expertise in-house.
    5. Easy investment attraction Establishing your own R&D center with a dedicated team of software developers will enhance your appeal to investors.

    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!

    Andrii Akselrod CTO People.ai

    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.

    Boris Glants CTO Tonic Health

    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.

    Dmitrii Iermiichuk Head of Engineering Gotransverse

    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.

    Elena Leonova Director of Product Management BigСommerce

    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.

    Farhad Shamshirzan
    Farhad Shamshirzan Director of Software Engineering Certent

    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.

    Grigoriy Didorenko Research and Development Director BIScience

    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.

    Kirill Latish Head of Engineering & Communications Velory

    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.

    Vitalii Belelia Production Management & App Support Manager Ledger

    FAQ

    1) Is it beneficial to use staff augmentation services?

    You will benefit from staff augmentation services in Latin America and Eastern Europe 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 the common challenges or pitfalls of using IT team extension?

    The main flaws of IT staff augmentation lie in cooperation through a third party. Since software engineers work for your provider, they may see your project as a passing one and not feel loyal to your particular task. Besides, you’re less engaged in their management and will have to pay buyout fees should you decide to hire them.

    3) What are the alternatives to IT staff augmentation?

    A software R&D center is your all-in-one solution to hire Silicon Valley-caliber tech professionals, manage payroll & accounting, navigate legal & compliance, get equipment procurement, and lease an office with your reliable provider like Alcor. Other models include software outsourcing, managed services, and a dedicated team.