How Nearshore IT Staff Augmentation Helps Businesses Save Money

Save money with nearshore

There are different options and pathways businesses can consider when looking to adopt a staff augmentation strategy. For businesses to effectively staff a project and tackle their most important objectives, making the right choice matters. Staff augmentation and outsourcing options include onshore, offshore, and nearshore, with nearshore proving to be the most convenient for businesses looking to boost their productivity, quality, and effectiveness all while saving time and money. 

Nearshore IT staff augmentation is when staff augmentation is offered by a third-party service provider or independent contractor from a nearby location, typically a bordering country located within the same, or a very similar, time zone. It has become a popular alternative to other staff augmentation options because of its attractive cost-benefit, reduction in hiring time, as well as convenience for both in-house and augmented teams to work together on projects remotely, speeding up development processes in general. Nearshore has risen in popularity as a staff augmentation favorite. 

The number one reason why businesses choose nearshore IT staff augmentation to staff their projects is undoubtedly cost-effectiveness. Here, we discuss the three main ways nearshore IT staff augmentation helps businesses save money. 

Recruitment and hiring

Recruitment and hiring aren’t only defined by time as an investment factor. Cost is also associated with the hiring cycle as businesses allocate budgets to recruitment and hiring processes. With nearshore IT staff augmentation, businesses are able to save costs in the hiring process (such as cost per hire) by easily tapping into the talent they need, without any hassles. Nearshore service providers are specialized in providing businesses with the talent they need, almost immediately. This way, companies can ramp up their projects and achieve their goals without being tied down by hiring challenges.

With nearshore IT staff augmentation, businesses can hire with much more flexibility and speed by only hiring professionals for the short term instead of bringing permanent employees on board. Businesses can also scale up or down their IT resources depending on what their project needs and requirements are at the time.

This positively reduces budgets placed on time-consuming recruitment processes and traditional hiring costs. 

Payroll, rates & benefits

Unlike traditional, full-time, or permanent employee costs, nearshore IT staff augmentation brings a ton of cost-saving benefits to the table. By being able to hire temporary employees, either as contractors or through a third-party nearshore provider, businesses don’t have to cover full-time employee payroll costs and benefits packages as they would with permanent, local employees. 

In addition to this, nearshore gives businesses the opportunity to hire professionals outside of their local country’s borders, usually at a much lower cost. For example, when US companies hire nearshore IT staff augmentation services in Mexico, they can pay professionals in their local currency (Pesos) instead of US Dollars or pay based on location-specific market rates. It’s often a win-win scenario for both the hiring company as well as the nearshore provider as the former is able to pay less than they would in their home country while the latter is still offered an attractive salary, often even above their local market average.

All these benefits allow businesses to save costs while still having timely access to the expertise of skilled professionals.

Training and upskilling

With nearshore IT staff augmentation businesses are able to save significant costs when it comes to investing in training and upskilling team members. When businesses need employees to have specific skills for certain projects or initiatives, they usually have to invest both money and time in hiring full-time employees or training the ones they already have on board. With nearshore IT staff augmentation, they can simply hire a professional, either through a third-party service provider or on a contract basis, who already comes experienced with a specific skill set and domain-centric knowledge.  

In addition to not having to cover full-time employee costs, money is saved as staff-augmented team members are able to readily jump onto special projects in little to no time and businesses don’t have to worry about investing in training or upskilling programs.

Infrastructure and resources

Businesses investing in new technology, IT projects and product development are subject to costs involving infrastructure, tools, equipment, and resources. Depending on the size of a company, operational costs can take a huge chunk of money out of business budgets, especially when they aim to keep things running at a smooth pace. 

By hiring remote, nearshore staff or working with a nearshore IT staff augmentation service provider, businesses can save on office space, equipment, software subscriptions, and other tools needed for day-to-day operational functions. Businesses that use third-party nearshore IT staff augmentation service providers don’t have to cover these costs as they usually come included in the service provider’s overall offer. 

About Icalia Labs

Icalia Labs is a world-class nearshore software product firm enabling businesses to translate their digital strategies into tangible value. With a customer-centric design and an engineering culture, the firm guides its clients through an agile framework to acquire new digital capabilities and fortify their innovation-to-market mindset.

Icalia Labs delivers value through a frictionless software environment, assembling the right people, products, and processes into the mix. We have grown our team all across the Americas, leveraging economies of scale to achieve more in less time while providing better solutions.


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