Not another

‘hiring in-house vs. offshoring’

blog post

Let’s talk about an even better option than hiring in-house or offshoring to expand your team: nearshoring, a type of outsourcing involving hiring from a nearby country. 

Here are 5 reasons why nearshoring is the “happy middle” that your US-based tech business needs:

Budget

It is no surprise that wages in the US are among the highest globally, making in-house, local hiring much more expensive than offshoring. Offshoring costs are limited to the hourly rate of the developer, which removes administrative costs and labor from the hiring/firing equation and can make offshoring more cost-effective. However, in-house hiring is more attractive for employees seeking long-term jobs since the employer usually takes on responsibilities such as legal documentation, insurance, paid time off, and equipment. This is where nearshoring comes in. Staff augmentation agencies help you from both sides: the hourly rates are almost as low as offshoring, while also covering most, if not all of, the same employer responsibilities for the candidates as they would for in-house.

Recruitment efficiency

Having a staff augmentation agency as a partner allows you to constantly request talent acquisition without the costs of full-time or in-house tech recruiters. Aside from recruitment, these agencies are constantly optimizing their processes to achieve seamless integration when building outsourced digital teams. To achieve that level of integration for both companies and the talent, these agencies offer a secure hiring structure, a supported onboarding process, and an evolving retention strategy. With these factors off your plate, you can focus on your business.

Diversity

Working with people from other countries can bring a diversity of skills, perspectives, and cultural insights into your business. However hiring foreign talent with offshore, in-house, or freelance models can take considerable time, know-how, and resources to properly handle migratory and other geographical factors. One benefit nearshoring offers is access to multicultural and international tech talent that has been filtered to comply with your hiring needs. Some of these filters include: proper internet access, English language assessment, experience working remotely, cultural affinity, migratory or visa status (i.e., availability to travel into and out of the US if needed), compliance with the labor laws of the other countries, and proof that salary payments can go through between countries.

Work schedule

The time zone differences with offshoring can create challenges with holding engineers accountable and available simultaneously. This inherent difficulty might lead to thinking that in-house hiring is the only option to ensure all of your team is working on the same schedule. With nearshoring, it’s easy to have your whole team one ping away, especially for last-minute changes or meetings. Due to geographical proximity, nearshoring offers a 60% to 100% working schedule overlap, similar to how it would feel if your team worked in the same building, at the same time, but on another floor.

Remote era

2020 saw a huge leap for businesses to venture into the remote work model. The tech industry benefited greatly from this shift, especially in terms of budget and productivity. Remote work has become the industry’s new normal. Even before this change, some staff augmentation agencies had adapted to this mode, making it easy for them to help companies retain employees by building remote teams.

These are 5 reasons why nearshoring can be highly powerful for your business. The internet will keep evolving and so will companies’ online needs–staff augmentation agencies make adapting easy. If you’re curious to expand your team with this model, here are 5 additional advantages of partnering with us, Stateside, for staff augmentation:

• Nearly a decade of experience working remotely with proven success.
• Fully available tech-recruitment experts allocated across the Americas.
• An HR team is fully engaged to be in compliance with the labor laws of all countries.
• Personalized tech and additional filters based on your talent needs.
• We have vendors throughout the Americas ready to deliver any required hardware to the teams.

Learn more and stay tuned at stateside.agency.