Software Development Team Augmentation: A Strategic Approach

Published on
Oct 11, 2024
Written by
Maria del Mar Agudelo
EDITED by
Juan David Rodríguez
Read time
4 Minutes
Category
Talent Insights

Software development team augmentation is a strategy in which companies integrate external technology talent with their internal development teams, allowing them to expand their capabilities. It helps companies maintain control over projects while benefiting from the expertise and skills of external developers. Unlike traditional outsourcing, team augmentation offers greater flexibility as external talent works closely with the internal team.

Software development team augmentation is no longer just a temporary solution but has become a critical strategy for companies that need to adapt quickly to changing market conditions and technological advances. By bringing in skilled professionals precisely when they are needed, companies can focus on their core business. Providers like Teilur Talent ensure that companies receive highly skilled developers who fit the client's time zone, culture, and specific project requirements. 

Learn more about Staff Augmentation Services

Software Development Team Augmentation in Business Growth

For many companies, staff augmentation has become a fundamental approach, not just a temporary solution. It allows organizations to dynamically manage workforce needs and address skills gaps without the need for long-term commitments. For example, during digital transformation initiatives, companies often struggle with talent shortages and high costs. Staff augmentation can alleviate these challenges by providing the necessary expertise on a project-by-project basis, allowing internal teams to focus on strategic priorities.

For companies looking to remain competitive, augmenting the software development team provides the agility to adapt to project changes without sacrificing quality or speed. The key to the success of this strategy is selecting a partner that understands the company's vision, values, and business needs. 

Curious about the benefits of flexible tech talent solutions? Check out our blog on Agile Staff Augmentation: Scale Fast, Stay Flexible.

Benefits of Software Development Team Augmentation

Software development team augmentation brings several advantages that make it an attractive solution for companies:

  • Cost Efficiency: By choosing to augment teams, companies can save on recruitment and onboarding costs and hire remote talent from Latin America at lower rates.
  • Access to Top Talent: Companies gain immediate access to a Latin American talent pool, allowing them to obtain highly skilled developers without being restricted by geographic location in addition to matching their working hours.
  • Scalability: Augmentation allows businesses to quickly scale their teams up or down based on project needs, making it ideal for startups and enterprises.
  • Reduced Risk: With transparent pricing models, background checks, and thorough skill assessments, providers like Teilur Talent ensure the quality and reliability of the selected talent.
cost savings with software development team augmentation

Our thoughts on the pricing structure of Toptal 

While it's not possible for us to find details about how much of what a client pays ultimately goes to a candidate, we believe clients looking for transparent and straightforward pricing may want to look at other alternatives.

Our opinion is that if they are charging a client more than $12,000 monthly for a developer, they should at the very least be giving $9,600 to the candidate, but it's likely that it's even less than that.


What Hiring Managers Should Ask Before Choosing a Talent Partner

Before partnering with any talent provider — whether Toptal, Teilur, or others — hiring managers should consider asking the following key questions:

  • What percentage of the fee actually goes to the talent?

  • Are replacement or satisfaction guarantees included in the contract?

  • How are regional salary benchmarks determined?

  • Is there full transparency in how rates are broken down?

  • What is the long-term cost difference between hiring directly and through a platform?

These questions can help businesses make informed decisions and ensure that pricing aligns with both market realities and ethical compensation practices.

Toptal vs Teilur Talent Comparison
Concept Toptal Teilur Talent
Transparency Pricing details are not publicly disclosed. Clients see a blended hourly rate that includes both Toptal’s fee and the freelancer’s pay. Fully transparent rate breakdown. Clients see exactly how much goes to the talent and how much is retained by Teilur as a service fee.
Commission / Markup Estimated at up to ~50% based on third-party reports and client testimonials. The exact markup percentage is not officially stated. Capped at 20%, ensuring that at least 80% of the client’s payment goes directly to the developer.
Monthly Subscription Fee $79/month, non-optional, grants access to Toptal’s vetted talent network. (Source: Toptal website). No subscription fees. Clients only pay when hiring or engaging talent.
Initial Deposit $500 refundable deposit required to begin a talent search. No upfront deposit required to start the matching process.
Trial Policy Two-week no-risk trial. Clients are billed only if satisfied with the match. N/A (direct matching) – Teilur focuses on pre-vetted, long-term placements with transparent trial terms discussed case by case.
Pricing Range (Developers) $60–$200+ per hour depending on experience and project complexity (includes platform markup). $6,000–$7,000/month for senior LATAM developers, equivalent to ~$35–$45/hour — transparent, with no hidden markups.
Payment Structure Bi-monthly invoices; payment terms like Net 10. Includes blended rate. Monthly invoices with clear cost breakdown (talent pay + Teilur fee).

How to Implement a Successful Team Augmentation Strategy

To implement a successful software development team augmentation strategy, businesses should consider the following steps:

  1. Assess Internal Needs: Clearly define the skills gap and project requirements. Determine whether the current team lacks specific expertise or simply needs additional capacity to meet deadlines.
  2. Choose the Right Partner: Select a reliable provider who offers transparency, ensures quality checks, and aligns with the company’s time zone and communication preferences.
  3. Onboard and Integrate Quickly: Ensure that the augmented developers are familiar with the company's processes, tools, and project goals. This speeds up integration and productivity.
  4. Utilize AI for Efficiency: As AI tools continue to evolve, they play a crucial role in enhancing the productivity of augmented teams. AI can automate routine tasks such as software testing, allowing human developers to focus on more strategic aspects of development​.

By following these steps, companies can maximize the value of their augmented teams and achieve faster project completion without compromising quality.

When to Consider Software Development Team Augmentation

There are specific scenarios where software development team augmentation is especially beneficial:

  • Rapid Scaling Needs: Businesses often need to quickly scale their development teams to meet tight deadlines or manage a surge in workload, such as during product launches or updates​. Team augmentation allows for immediate scalability without the delays of traditional hiring processes.
  • Strategic Innovation: As the tech industry continues to integrate AI and other advanced technologies, team augmentation becomes a valuable tool for companies aiming to innovate. By bringing in external experts, firms can explore new tech areas without diverting internal resources from core activities​.
  • Cost Management: For businesses looking to manage their budgets efficiently, augmentation allows them to add talent as needed, avoiding the fixed costs associated with full-time employees. It also reduces overhead since the augmentation partner handles administrative aspects like payroll and compliance.

Understanding the right time to leverage augmentation ensures businesses get the best return on their investment.

Toptal vs Teilur Talent Comparison
Concept Toptal Teilur Talent
Business Model Global freelance marketplace connecting clients with vetted professionals in software, design, and finance. LATAM-focused recruitment company connecting businesses with full-time remote developers and tech professionals.
Selectivity Claim Claims to accept less than 3% of applicants, based on its internal screening process. Works only with pre-vetted, bilingual professionals in LATAM, selected for technical and communication skills.
Recruitment Process Multi-stage: timed skills test → English interview → real-world project → live screen evaluation. Direct evaluation of experience, portfolio, and communication ability. Matches candidates by vertical (QA, Software, Cybersecurity, Data & BI) and company culture.
Trial or Test Period Offers a two-week trial, refundable if client isn’t satisfied. No fixed trial period — focuses on long-term retention and transparent onboarding.
Contract Type Typically weekly contracts (20 or 40 hours) with limited flexibility for short-term projects. Flexible monthly agreements, allowing scalability per project scope and company needs.
Transparency Pricing details not publicly disclosed. Clients see a blended hourly rate including Toptal’s markup. Fully transparent pricing model. Clients see how much goes to the developer and how much is Teilur’s service fee.
Commission / Markup Estimated around 40–50%, based on user reports and external reviews. Capped at 20%. At least 80% of client payment goes directly to the developer.
Initial Deposit Requires a $500 refundable deposit to start the search process. No upfront deposit required.
Client Support Account managers available during hiring and engagement. Support quality varies by project. Personalized support from start to finish, ensuring alignment for both client and talent.
Developer Pay Transparency Developers are contractually restricted from disclosing their actual pay rates. Developers know their full compensation and see transparent rate breakdowns.
Geographic Focus Global, with talent from Eastern Europe, Asia, and LATAM. Exclusive to Latin America, optimizing time-zone alignment and cultural fit.
Turnover Rate Not publicly disclosed. Reported below 15%, reflecting strong retention and satisfaction.
Best For Large enterprises or teams needing globally distributed freelance specialists. U.S. and international companies seeking transparent, long-term partnerships with vetted LATAM developers.

Transparent Pricing and Efficient Recruitment Process

Teilur Talent is committed to offering a straightforward and effective recruitment process alongside transparent pricing that builds trust with clients. This combination makes it a valuable partner for companies looking to expand their development teams through software development team augmentation. Here’s a closer look at how Teilur Talent manages recruitment and pricing:

Transparent Rate Pricing

Transparent pricing is a cornerstone of Teilur Talent's approach, designed to ensure fairness and openness with both clients and talent. The process is structured around two key principles:

  • Transparency Before Interaction: Teilur Talent ensures that both clients and candidates understand the financial arrangements. A clear breakdown of how payments are distributed between the company and the talent is provided, ensuring that no more than 20% of the payment from clients is retained as a service fee. 
  • Clarity in Expected Rates: Unlike many competitors, Teilur Talent disrupts traditional practices by openly displaying expected salaries or rate ranges on its website. This helps potential clients understand the cost of services before engagement, making it easier for enterprises and startups to plan their budgets. The aim is to foster a pricing model that is both fair to the client and rewarding for the talent, ensuring long-term satisfaction for all parties involved.

The Recruitment Process

The recruitment process at Teilur Talent is designed to quickly find the right match for each client. It starts with the client submitting a job description or specifying the required skills. The recruitment team first checks their Applicant Tracking System (ATS) for pre-screened candidates that fit the role. If suitable candidates are not available, the search extends to platforms like LinkedIn, where the team verifies technical skills and English proficiency. Once potential matches are identified, their profiles are sent to the client for review. If the client agrees, the selected candidates proceed through interviews and final selection, ensuring a smooth and effective hiring process.

Need help with cost expectations?

Our hiring costs vary depending on the candidate's accepted offer. Use our calculator to estimate costs for different roles.

These are our recommended salaries, but clients are free to set their own rates.

Estimate cost
Oops! Something went wrong while submitting the form.
Expected monthly cost

$

0

Candidate's salary
$

0

Teilur's fee
$

0

Total payment
$

0

Start hiring empezar aplicación
Median:
$
0
Min:
$
0
Max:
$
0

Client Reviews

Teilur Talent
Teilur Talent Reviews
Madhulika Sharma

Teilur Talent featured in...

"Argentina offers highly competitive labor costs compared to other nearshoring destinations. With a strong focus on software and IT services, Argentina's tech talent pool is growing, and the country is already a resource for tech giants like Google."

Teilur Talent featured in...

"Brazil offers an attractive combination of cost-effectiveness and high-quality talent. With reportedly more than 500,000 software developers and an impressive annual growth rate, Brazil boasts the largest tech talent pool in LATAM."

Teilur Talent featured in...

"Teilur Talent recognized as the top IT Recruiting & Staffing firm in Latin America, Teilur Talent has made valuable contributions towards making the IT workspace more efficient and streamlined."

Teilur Talent featured in...

"Teilur Talent is the world’s first talent development network connecting U.S. tech startups and remote developers from Latin America!"

At Teilur, Inc, we are committed to accuracy and fairness in all our content. Our discussions and comparisons, particularly those concerning other businesses in the recruitment industry, are grounded in the best interpretations made by our dedicated staff, based on publicly available information. We hold a deep respect for the unique qualities of each organization within our field and strive to offer valuable insights rooted in our core beliefs about the recruitment industry's workings. If you encounter any factual inaccuracies in our content, we encourage you to reach out to us at content-research@teilurtalent.com with the specific URL in question. Your feedback is invaluable, and we are committed to reviewing and addressing your concerns.

Got questions? We've got answers.

1

How is Teilur Talent different from other tech recruiting companies in LATAM?

At Teilur Talent, we take a mission-focused approach to recruiting, ensuring that our candidates are aligned with your company's vision and goals. Unlike other tech recruiting companies in LATAM, who may focus solely on technical skills, we prioritize the cultural fit and dedication of our team members to your company. For this reason, we do not support project contractor or freelancer roles. Instead, we focus on fully devoted team members who will help you achieve long-term success.

2

How does Teilur Talent attract and retain the best talent compared to other companies?

At Teilur Talent, we offer our candidates competitive salaries that are 2x to 3x higher than what tech companies would pay locally. This allows us to attract top talent and retain highly motivated and loyal team members. Additionally, we focus on finding candidates whose values align with the purpose, vision, and mission of our clients. This approach ensures that our engineers and tech talent are not just coding and completing task rather, they become part of a greater purpose, which gives them meaning and helps us attract and retain the best talent.

3

What are the typical tech roles that Teilur Talent recruits for?

At Teilur Talent, we specialize in recruiting for a wide range of tech roles that are typically in high demand. These include positions such as DevOps engineers, AI Developers, QA analysts and engineers, back-end and front-end developers, data scientists, product managers, business developers, and technical sales positions. Essentially, we recruit for most roles that are needed in B2B and B2C tech-focused businesses.

4

What are Teilur Talent's fees and pricing structure?

At Teilur Talent, we believe in transparency. We charge a flat rate fee of 20% of what the client pays. This way, our clients know exactly what they are paying for and how much the candidate gets. As an example: If a client hires a software engineer for $60,000 per year ($5,000 per month), Teilur's monthly fee would be $1,000 (20% of $5,000). We don't believe in hidden fees or unwanted surprises, so we disclose all costs upfront to both candidates hired and companies. When exploring other alternatives, make sure they are transparent about their pricing. We believe this is paramount for the benefit of all parties involved in this new era of remote work.

5

What is the candidate screening process at Teilur Talent, and how do you ensure a good fit for my company?

At Teilur Talent, we take candidate screening very seriously. We use a multi-layered approach to find the best candidates for our clients, starting with screening thousands of candidates from our internal and proprietary networks. We leverage AI technology to assess whether a candidate matches the technical skills required for a given job opening. We also perform additional personal evaluations to ensure that the candidate has the soft skills, culture fit, and English language skills required to excel in their new role. Our rigorous screening process ensures that only the best candidates make it through to our clients, saving them time and helping them find the best talent for their teams.