Staff Augmentation: A lean way to enter emerging markets

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 new market – that’s where staff […]

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 new market – that’s where staff augmentation comes in.

In this article we will show you how using Emerhub’s staff augmentation service you can have local teams doing sales, conducting market research, finding distributors in any (or all) of our offices essentially immediately. Without any bureaucracy or large scale investments.

What is staff augmentation?

Staff augmentation definition

Simply said, staff augmentation is outsourcing a person or a team. While widely used in IT sector to outsource talent the company lacks it’s also a viable strategy for testing out new markets. In this article’s context it stands for hiring local teams in markets where you don’t have legal presence in by using a service provider such as Emerhub.

Staff augmentation vs. managed services

Unlike staff augmentation where you have a person or a team working full time for you (without having to actually employ them) a managed service model is where a third party conducts agreed activities and assumes the responsibility for the outcome. Depending on your needs this may be an excellent opportunity, for example for finding distributors.

Staff augmentation for entering new markets

Based on Emerhub’s experience the most common use cases for staff augmentation for entering new markets are:

  • Conducting market research
  • Selling products
  • Finding suppliers or distributors

Why to use staff augmentation for entering new markets?

Build a market before making foreign direct investment

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?

With staff augmentation you can have people working full time for you without any legal presence in the country. How you want to use them depends entirely on you but it tends to work the best for specific tasks such as meeting potential suppliers, collecting information or even selling your products to potential customers.

Once you already have the confidence that the market is attractive enough for you then it’s time to set up a legal entity. What you need to know about the legal entity types in Vietnam and in Indonesia.

Enter new markets faster – immediately have 3 offices in SEA using Emerhub

Setting up a company, acquiring work permits and licenses may take 2-6 months or even longer in emerging markets such as Indonesia 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.

No need to understand local employment laws and regulations

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 anybody directly yourself. This allows you to focus on your core business while the bureaucracy is handled for you.

Meet Nindya Paisan, the HR Recruiter for Emerhub:

Getting started with staff augmentation

The main benefit of these busy markets is that there are endless opportunities. However this also creates a challenging atmosphere for the employer.

Luckily with a certain level of experience and expertise that comes with years, a trusted expert knows current law regulations, where to find highly qualified staff, how to motivate them and therefore make your business or project a success. Trust to get started with Emerhub.

Staff augmentation in Indonesia

In case your initial business interest is Jakarta, we would recommend you to get in touch with our recruitment specialist and start with the staff augmentation in Indonesia. First off, let us hear more about you.

Describe your current HR needs under the link here so that our team can assist you furthermore.

Staff augmentation in Bali

Similar to our office in Jakarta, there are multiple ways how we can support your project when it comes to staff augmentation in Bali.

Share your details with us in Emerhub so we could get back to you.

Staff augmentation in Vietnam

Vietnam has seen a great market increase and thus offering the service of staff augmentation in Emerhub grew rapidly in 2016. Luckily with welcoming many new businesses in the market, there is equal potential in the field of recruitment.

If Vietnam is the market for you, fill in the form here

Since 2011, Emerhub has helped over 500 companies of all sizes enter Southeast Asian markets.

Get in touch with Emerhub by filling in the form below to discuss how we can help your business thrive in Indonesia.