Staff Augmentation: A lean way to enter emerging markets

Learn how to use dedicated outsourced teams to test new markets faster.

setting up a company in the Philippines

One of the best ways to understand whether and how to enter a new market is to test it out first. Setting up a new legal entity and hiring local teams is needed for running full-scale operations but it doesn’t have to be the first step of entering a new market – that’s where staff augmentation comes in.

In this article, we will show you how to use staff augmentation for expanding to new markets faster and with lower costs.

Table of contents

    Understanding staff augmentation 

    What is staff augmentation

    Staff augmentation is a form of outsourcing where a company contracts an outside team to deliver a project. Unlike managed services where the professional service firm is contracted for a specific outcome, staff augmentation is usually agreed upon in the amount of time the team works for the company.

    Essentially this means you will have a temporary in-house team without the bureaucracy that comes from hiring employees. And your hiring is not limited to the countries where you have a legal entity.

    Staff augmentation for entering new markets

    Staff augmentation is commonly used in the IT sector to contract a team for a project that requires a skill set that the company doesn’t possess. However, it can also be an effective way to test new markets.

    For example, let’s say a pharmaceutical company wants to know whether their products have a business potential in Southeast Asia. Two common ways to do it would be to conduct market research and send senior executives to meet with potential buyers.

    With staff augmentation, the company can take a step further by having a dedicated team of sales representatives from a medical background working for the company for 6-18 months. The local team knows the market and the buyers will be more confident to buy because they see the seller has a local presence.

    If you want to hire long-term employees, then the employer of record is a better alternative.

    Using staff augmentation for entering new markets

    Lower costs

    Foreign direct investment is a commitment that should be made once you have at least some level of market intelligence. So how do you find out whether your products or services have a potential in the market you are considering?

    Once you already have the confidence that the market is attractive enough for you then it’s time to set up a legal entity.

    Enter new markets faster

    Setting up a company, acquiring work permits and licenses may take months or even longer in emerging markets such as Indonesia, the Philippines or Vietnam.

    While it should not be seen as a limitation but rather as an opportunity to enter markets with less competition with staff augmentation you can already get started before you complete all the legal requirements. And then once your company is registered you can either transfer the outsourced staff to your own payroll or continue using the service provider.

    Focus on building a business instead of managing local bureaucracy

    When entering new markets you will also face new legal environments with their own regulations and written and unwritten norms.

    Staff augmentation eliminates the need to understand local employment laws since you don’t hire employees directly. This allows you to focus on your core business while the bureaucracy is handled for you.

    Getting started with staff augmentation in Southeast Asia

    Decide on the market you want to test

    Emerhub provides staff augmentation in the Philippines, Indonesia, and Vietnam. Additionally to the geographical location, you should also decide the scope of your project. Staff augmentation is most effective for specific assignments.

    Hiring a team

    Unlike traditional staff augmentation firms, Emerhub does not specialize in a specific industry. We assemble teams based on the needs of the client, such as:

    • Procurement experts
    • Technical sales
    • Software developers
    • Marketing support

    Let's grow your business in Southeast Asia

    Emerhub has years of experience with employer of record in Southeast Asia.

    Get in touch with Emerhub by filling in the form below and our consultants will reach out to you within a few working hours.

    employer of record in Southeast Asia

    We felt like we were investing our money doing the right things

    I think the best part is I feel Emerhub is confident when it comes to regulations and very updated compare to some of the others. A sense of security when we were actually investing our money doing the right things. So coming from a bad experience before Emerhub and having to change all our documents because of the mistake having been made earlier. We have confidence that with Emerhub we are doing the right thing.

    Camilla Fulland
    Prime Stoves

    I just had to give my documents, sit, and relax

    Supportive staff from Emerhub made the incorporation process of my company easier and faster. You just give your needed documents, sit and relax.

    Regit Ageng
    Rofel Abadi Kreasindo

    Instrumental in setting up our remote development team

    We’ve been using Emerhub for over a year now, and they have been instrumental in the setup of our first remote development team in Indonesia by providing Recruitment Services. Monica and the team have been wonderful to deal with, and have found some great tech talent for our growing team.

    Paul Ferrett
    Head of Development, Catch Group

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