Innovation is what drives the growth and development of a company in the market.  And that’s what Offshore IT staff augmentation offers to the company. It opens up a doorway to a gamut of talent pool cutting across geographies with borderless hiring. According to a report by Grand View Research, the global IT outsourcing market size was valued at USD 343.18 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 4.5% from 2021 to 2028.

The World Bank claims that the United States is quite clear, to invest approximately 2.84% of its GDP in science and technology. That is why the IT Staff Augmentation USA modality has become so popular and in demand by global companies. Staff augmentation helps to avail talent with lower labor costs in countries and also provides an opportunity to access specialized expertise that may not be available locally. Offshore IT staff augmentation can be a cost-effective way for companies to access specialized skills and expertise, and to increase their capacity without the need to hire full-time employees locally. However, it also presents some challenges, such as managing cultural differences, time zone differences, and potential language barriers. Effective communication and project management are essential to overcome these challenges and ensure the success of offshore staff augmentation projects.

RegionAverage software development hourly rateEase of doing business*Political stability**
North America$77840.3
Western Europe$7580.30.7
Eastern Europe$5873.70.4
Latin America$6165.7-0.1
Asia Pacific$2865.5-0.7

Regions Overview, 2023

*According to The World Bank, the max score is 100

** According to The World Bank, scale from -2.5 to 2.5


In the US, the offshore IT staff augmentation market has been growing steadily over the years, with companies in various industries, including healthcare, finance, and technology, leveraging the practice to meet their IT talent needs. The COVID-19 pandemic has also accelerated the adoption of remote work and offshore staffing as more companies seek to maintain business continuity and cut costs.

Offshore IT staff augmentation offers several benefits to companies that choose to leverage this business practice. 

Some of The Key Benefits Include:

1. Access to Diversified Talent Pool: 

Offshore IT staff augmentation allows companies to access a larger pool of skilled IT professionals from around the world which helps to complete specific projects or provide ongoing support for their IT operations.

2. Cost-effective: 

Hiring offshore IT staff can often be less expensive than hiring domestic talent due to differences in labor costs and currency exchange rates.

3. Offers Flexibility: 

Offshore IT staff augmentation allows companies to scale their IT workforce up or down as needed. This can be particularly useful for companies that have fluctuating IT talent needs throughout the year.

4. Saves Time: 

Offshore IT staff augmentation can help companies reduce the time it takes to hire IT professionals. Because the offshore IT staff is typically already trained and ready to work, companies can onboard them quickly and start working on projects immediately.

5. Reduce Risk: 

Offshore IT staff augmentation can help companies diversify their risk by spreading their IT talent across multiple locations. This can help mitigate the impact of disruptions such as natural disasters, political instability, or other unforeseen events.

6. Borderless Onboarding: 

Offshore IT augmentation also offers the advantage of borderless onboarding. Rather than having to relocate team members to a central location or deal with complex immigration requirements, companies can onboard team members remotely from anywhere in the world.

7. Dealing with Data: 

The data usage rates for all businesses have exploded over the last decade. Much of the data that IT companies are trying to leverage needs processing, and using offshore labor can be a key way to get such projects done given how labor intensive and expensive they would be to do in house.

8. Easier Management:

Most managerial duties are either self-administered by offshore workers or are handled in-house by the companies they work for. As a result, upper management at the hiring company has less to worry about.

Offshoring is the leading transformation opted by companies to beat the business competition. There are many offshore staffing companies in the US with a proven track record of providing a quality offshore workforce to their clients. To name some are Randstad serving clients across 70+ countries, Robert Half (listed on Forbes’ list of America’s Best Employers for Diversity), Mastech Digital (specialized technology and data-driven company), Adecco Group (holds experience in diverse industries like Information technology (IT), Banking, financial services and insurance (BFSI), fintech, Manufacturing) and many more.

Offshore IT staff augmentation is beneficial for startups as well. It can reduce cost, enhance efficiency in delivering complex projects in no time, reduces workload and help optimize productivity. This can ensure great outcomes for startups.  

Overall, offshore IT staff augmentation can be a valuable business practice for companies that need to access a larger pool of IT talent. However, it is important to select the right offshore IT staff, establish clear communication channels and project management processes, and ensure appropriate security and compliance measures are in place, so companies can mitigate the risks and achieve successful outcomes. Moreover, it can promote access to diversified talent and offer borderless onboarding, making it an attractive option for companies looking to expand their capabilities and remain competitive in a global marketplace.

Tapaswini Swain

Communications Consultant

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