When you compare staff augmentation offers, the numbers can look very different — one partner quotes an hourly rate, another a monthly fee, a third a placement fee. Understanding what each fee covers is the only way to compare them fairly.
Common pricing models
Hourly rate
You pay for hours worked. Flexible and good for small or irregular work, but monthly costs vary.
Monthly dedicated fee
A fixed monthly amount for a developer working a set number of hours (for example 80 or 160 hours). Predictable and the most common model for ongoing work.
Markup on salary
Some partners show the developer's salary plus a percentage markup. Transparent, but check what the markup includes.
Placement / recruiting fee
A one-time fee if you hire the person directly onto your payroll. Common with recruitment agencies.
What the fee should cover
| Item | Included? |
|---|---|
| Developer salary and benefits | Always |
| Recruitment and vetting | Usually |
| Equipment, software and office | Ask |
| Project management | Varies |
| QA and code review | Varies |
| Replacement if not a fit | Ask |
| Leave and holiday cover | Ask |
| HR, payroll and compliance | Usually |
Hidden costs to watch for
- Setup or onboarding fees
- Long minimum contract periods
- Charges for replacing a developer
- Extra fees for tools, licences or overtime
- Notice periods to scale down
Compare total cost, not the rate
A low hourly rate can become expensive if you also pay for management time, rework and re-hiring. Estimate the total monthly cost including your own time spent managing, and the risk of delays.
Questions to ask every partner
- What exactly is included in the fee?
- What happens if the developer is not the right fit?
- Can we switch between hourly, part-time and full-time?
- What is the minimum commitment and notice period?
- Who owns the code and IP?
See Appri Infotech's hourly, part-time and full-time plans, or ask us for a detailed quote.