Building Remote Teams

Staff Augmentation vs Direct-Hire Contracting

Find out the difference between Staff Augmentation and Direct-Hire Contracting in order to find out what is the choice that best fits your needs

Looking for nearshore talent or software development solutions? Staff Augmentation and Direct-Hire Contracting are two of the options companies consider to scale their team.

Whether you are looking to fulfill a new project or hire specialized talent for a specific role, you should always consider your options when you are looking to hire software talent.

Find out what is the choice that best fits your needs with this article.


In this Blog:

What exactly is Staff Augmentation?

When will you need Staff Augmentation?

What exactly is Direct-Hire Contracting

When will you need Direct-Hire Contracting?

Pro’s and Con’s for both Hire Models


What exactly is Staff Augmentation?

If you are looking to hire a developer for a limited amount of time then staff augmentation approach is for you.

Staff augmentation involves bringing in external personnel on a temporary basis to enhance your organization's capabilities.

Freelancing platforms serve as a key source of talent for staff augmentation, offering easy access to a diverse pool of freelancers.

A downside of this approach is that companies often struggle to determine if the vast array of profiles available truly align with their needs and expectations.


When will you need Staff Augmentation?

Staff Augmentation allows companies to access professionals with specific skill sets that may not be required all the time in order to successfully fulfill your daily tasks.

Consider Staff Augmentation when you need candidates that require certain skills or seniority during one-off situations.

Companies utilize staff augmentation in various scenarios:

- During peak seasons or when there is a surge in customer demand

- To address immediate needs while building a permanent team

- When specific skills are lacking in the in-house team

- To gain a competitive edge by speeding up time-to-market


Other scenarios are related to burnout avoidance. Giving in-house teams some support by adding a team member when their workload is too full for them to handle will surely be appreciated.

Staff augmentations could look like working with a freelancer or with a contractor. These are basically forms of staff augmentation because you're not offering benefits from your company and you're not hiring these external professionals as employees.

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What exactly is Direct-Hire Contracting?

If you are looking to grow your workforce permanently by hiring developers for the long run, offering benefits and including them on your payroll, then you're choosing Direct-Hire Contracting.

When you find software talent that fits your daily needs and company culture, you are going to want to hold on to the candidate. Direct-Hire Contracting allows you to hire one or several employees to your company by taking care of the more tedious parts of the process.

When your company grows, so does its workload, so the smart business decision is to hire more people in order to maintain steady growth and avoid stress.

Direct-Hire Contracting helps you handle your company’s growth by allowing you to add talented programmers faster and more efficiently to your tech team.


When will you need Direct-Hire Contracting?

Needing to further expand your workforce’s capabilities by adding programmers to handle new tasks that may not have been there before but are here to stay?

Grow your team by accessing Direct-Hire Contracting services that will help you find, hire, and onboard programmers to your company faster by doing it for you. 

Maybe you are looking to replace several members that left your company and you need to find replacements in a timely manner. Direct-Hire Contracting is a great way to do this quickly without having to deal with the pressure of finding the right candidates yourself.

It’s easier to replace missing links in your workforce when you work with companies dedicated to Direct-Hire Contracting.


Pro’s and Con’s for both Hire Models

Staff Augmentation


1) Access to specific skill sets without having to include people on payroll

2) Hire international software talent for a limited amount of time

3) Flexible perks

4) Terminate working agreements with less paperwork



1) Higher programmer rates if work is extended

2) Working agreement negotiated by the company

3) Less commitment to the company in the long run

4) Availability of candidate


Direct-Hire Contracting


1) Grow your team internationally by having access to committed and talented programmers

2) Steady growth of the workforce

3) Hire multiple programmers at once



1) Legal aid costs when paying remote teams and staying compliant

2) Termination of a working agreement means dealing with more paperwork.


In the end, Direct-Hire Contracting or Staff Augmentation is all about a business strategy.


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