From hospitality to fintech, talent shortages and increased salaries continue to reshape the hiring landscape in the U.S. tech sector. IT teams face mounting pressure to drive ambitious digital transformation efforts with technologies like AI and blockchain, all while managing tighter budgets in an unpredictable economic climate.

Through outstaffing, Dev.Pro helps organizations avoid many of the risks and pitfalls that come with hiring full-time talent. In this blog, we conduct a comparison between outstaffing and full-time hiring to show the clear benefits of outstaffing for IT teams. 

The Shifting Dynamics of Tech Talent Acquisition in the U.S. 

Companies in the U.S. face a persistent and growing challenge when it comes to securing skilled talent. Here are some important statistics to note: 

  • A developer shortage is predicted to impact 85 million people by the year 2030.1  
  • Labor costs for developers in the U.S. continue to rise, with average annual salaries coming in at $132,270.1

Escalating salary expenses coupled with the costs of recruiting for specialized skills present a significant financial hurdle. At the same time, customers in diverse industries like retail and healthcare demand fast, frictionless experiences that only the latest tech like AI can provide. 

In today’s market, the pressure to innovate while maintaining cost efficiency is a serious challenge that compels many organizations to reevaluate hiring strategies. 

What are the Benefits of Outstaffing Tech Talent? 

Flexibility 

Flexibility is one of the most standout features of an outstaffing model. When outsourcing IT teams, you can transform a significant portion of workforce expenditures from fixed, long-term liabilities into variable, project-specific costs. 

Outstaffing allows businesses to engage specialized professionals for specific projects and limited timeframes, thereby avoiding the substantial long-term financial risks associated with full-time employees. Companies pay only for the skills needed and for the duration of the project, nothing more. 

Reduced Labor Costs 

Reduced labor costs are one of the biggest perks of outstaffing. In fact, organizations can reduce labor costs up to 35% when working with an outstaffing firm. 2 

Outstaffing also mitigates the hidden costs that come with high employee turnover. With turnover rates ranging from 13% to 18% in the tech industry, IT departments suffer significant financial burdens with hiring, training, and onboarding. This is notable because the cost of replacing technical staff can range from 100% to 150% of an employee’s annual salary.2  

The Outstaffing Difference    

With outstaffing, businesses can bypass the time and costs associated with creating job postings, conducting screening tests, and managing extensive interview cycles.  

Augmented teams are generally pre-vetted by your outstaffing partner and can be onboarded in hours, as opposed to weeks or months. At the same time, outstaffed teams typically bring their own high-performance workstations, test suites, and cloud environments, cutting down infrastructure costs. 

Comparative Cost Breakdown: Outstaffing vs Full-Time

The table below provides a clear comparison of the direct and indirect costs associated with outstaffing versus hiring full-time IT staff. 

Cost CategoryOutstaffing for US-Based CompaniesFull-Time Hiring for US-Based Companies
Direct Compensation (Salary/Hourly Rate)North America: $50-$150/hr (Senior Devs); $15-$50/hr (Junior Devs) 9Average US Software Developer: $111,845/year; up to $151,500/year for top earners.11 Average US developer cost: $132,270/year.1
Benefits (as % of salary)None directly for client (handled by agency) 12Typically 30-40% of salary (Health insurance, paid leave, retirement, legally required benefits) 14
Recruitment Costs (Per Hire)Minimal (handled by agency, pre-vetted talent) 4Average $4,700 16; can range from $4,000-$15,000+ for agency fees, job ads, screening, interviews 17
Onboarding Costs (Per Hire)Minimal (fast onboarding, hours to weeks) 4$1,000-$5,000 (training, tools, equipment, lost productivity during ramp-up) 17
Operational Overheads (Per Employee)None directly for client (no office space/infrastructure costs) 7Significant (office rent, utilities, software licenses: $2,500-$15,000/year; office supplies: $500-$2,000 initial, $200/month; administrative salaries) 18
Turnover Costs (Per Employee)Reduced for client (agency handles replacements) 3High (100-150% of annual salary for replacement) 3

At first glance, an hourly rate for an outstaffed developer might seem comparable to a full-time employee’s base wage. However, the total employment costs for full-time team members are significantly higher due to compounding expenses with benefits, taxes, recruitment, onboarding, and operational overheads. 

Here are some standout figures to note: 

  • A typical U.S. software developer earns around $132,270 per year, but benefits alone add 30-40%, pushing costs up to $171K-$185K per year. 
  • You also add an additional $4,000-$15,000+ in recruitment expenses, $1,000-$5,000 for onboarding, $2,500-$15,000 per year in operational overhead. 

Following the above figures, replacement costs can reach 100–150% of annual salary, which comes to about $130,000-$200,000 per employee! 

Since you pay an all-inclusive rate, outstaffing provides a much leaner and controllable way to hire tech talent. While senior developers typically get paid $50-$150 per hour, there are no hidden costs with hiring, training, onboarding, benefits, and operational overheads. 

Conclusion

The U.S. tech sector continues to evolve under the pressures of talent scarcity and surging salaries. At the same time, businesses in diverse industries like healthcare and retail are undergoing intensive digital transformation initiatives. 

Given these pressures, IT teams need flexible hiring solutions that mitigate financial risk while maximizing access to in-demand skills. With such compelling financial data, it’s evident that outstaffing is a strategic path for scaling in today’s unpredictable economic climate. 

Ready to Build a High-Performing Tech Team Without the Overhead?

Dev.Pro provides world-class outstaffing services for in-demand skills like AI, blockchain, DevOps, cloud computing, and more. With Dev.Pro behind your organization, you can get to market faster while controlling costs along the way. 

Contact us today to get started! 

Sources 

  1. Offshore versus Onshore: Key Differences and Benefits – TECLA, accessed June 24, 2025, https://www.tecla.io/blog/offshore-versus-onshore
  2. How IT Team Augmentation in USA Speeds Up Startup Growth – Orestes Technologies, accessed June 24, 2025, https://www.orestestech.com/blog/how-it-staff-augmentation-helps-startups-to-accelerate-product-development
  3. Cost-Efficient IT Scaling: Leverage outstaffing & In-House …, accessed June 24, 2025, https://innerworksinternational.com/featured/the-collaborative-it-workforce-a-cost-efficient-approach-to-scaling-your-business/
  4. 5 Benefits of IT outstaffing for Startups, accessed June 24, 2025, https://tezzasolutions.com/top-5-benefits-of-it-staff-augmentation-for-startups/
  5. IT outstaffing vs In-House Hiring: A Full Comparison, accessed June 24, 2025, https://acadiatechnologies.com/it-staff-augmentation-vs-in-house-recruitment-which-is-right-for-your-business/
  6. outstaffing vs. Traditional Hiring: Which One Wins?, accessed June 24, 2025, https://vanguard-x.com/it-staff-augmentation/staff-augmentation-vs-traditional-hiring/
  7. How IT outstaffing Can Cut Costs and Boost Efficiency?, accessed June 24, 2025, https://www.squareboat.com/blog/how-it-staff-augmentation-can-cut-costs-and-boost-efficiency
  8. IT outstaffing in US – Advantages & Process – BigOhTech, accessed June 24, 2025, https://bigohtech.com/it-staff-augmentation-in-us
  9. IT outstaffing Pricing Models 2025: A Complete Guide – JPLoft, accessed June 24, 2025, https://www.jploft.com/blog/it-staff-augmentation-pricing-models
  10. How IT outstaffing Pricing Models Impact Your Business Budget – nCube, accessed June 24, 2025, https://ncube.com/it-staff-augmentation-pricing-model
  11. Salary: Software Developer (June, 2025) United States – ZipRecruiter, accessed June 24, 2025, https://www.ziprecruiter.com/Salaries/Software-Developer-Salary
  12. IT outstaffing: A Key Driver of Business Success – Miles IT, accessed June 24, 2025, https://www.milesit.com/it-staff-augmentation/
  13. outstaffing for U.S. Startups and SMBs | The Flock, accessed June 24, 2025, https://www.theflock.com/content/blog-and-ebook/staff-augmentation-hire-tech-talent-startups-smbs
  14. What Is the Ideal Percentage of Benefits to Salary? – SalaryCube, accessed June 24, 2025, https://www.salarycube.com/human-resources/what-is-the-ideal-percentage-of-benefits-to-salary/
  15. Total Compensation Trends in the Tech Industry – Vorecol HRMS, accessed June 24, 2025, https://vorecol.com/blogs/blog-total-compensation-trends-in-the-tech-industry-9997
  16. engagedly.com, accessed June 24, 2025, https://engagedly.com/blog/average-cost-per-hire-employee/#:~:text=TL%3BDR%20Summary%3A,%2C%20onboarding%2C%20and%20tech%20tools.
  17. The Average Cost To Hire an Employee in 2025 – Paychex, accessed June 24, 2025, https://www.paychex.com/articles/human-resources/cost-of-hiring-an-employee
  18. What Are Overhead Costs? A Guide for Service Businesses – Housecall Pro, accessed June 24, 2025, https://www.housecallpro.com/resources/resources-overhead-costs-for-service-businesses/