Scaling High: How to Leverage External Talent to Drive Innovation

In today’s business landscape, companies are increasingly challenged by the need to scale their technological capabilities amidst a rapidly growing global talent shortage. IT staff augmentation emerges as a critical solution to this dilemma, allowing businesses to enhance their tech prowess swiftly without traditional hiring constraints. 

This pivotal discussion with industry leaders Andrii Bezruchko, CEO and founder of Newxel, a global IT staffing company, and Victor Dembovsky, GM of Newxel in Israel, offers indispensable insights for business leaders navigating this pressing issue. Their insights are tailored to the challenges you face in the modern tech landscape, making it an essential read for those seeking to overcome these complexities and achieve strategic objectives.

Insights from Industry Leaders

As we examine Andrii and Victor’s insights, it’s essential to recognize their unique perspectives from their extensive tech industry experience. Their firsthand knowledge offers a deep understanding of the strategic maneuvers required to thrive in this competitive field. Let’s begin by exploring what initially drew them into this sector and how their early experiences shaped the trajectory of their careers.

Q: Andrii, what initially inspired you to venture into the IT staff augmentation industry?

Andrii: “Over a decade ago, my journey into the IT staff augmentation industry was inspired by the challenges I faced while managing an R&D center as its CIO and CTO at a global hospitality company in Ukraine. The pivotal challenge at that time revolved around overseeing a wide range of internal systems and products, each demanding considerable resources. The transformative moment came with our decision to collaborate with a vendor to establish a distributed augmentation team. At that point, when remote work was unknown and unacceptable, such an approach was groundbreaking, almost verging on the impossible. Despite the initial hurdles of adopting remote collaboration, the remarkable efficiency and effectiveness it unleashed were eye-opening, igniting a spark that led me down the entrepreneurial path.”

This experience granted me a profound understanding of the pain points and needs within the tech sector, particularly from a customer’s perspective.

Q: Victor, what motivated you to join this industry?

Victor: “Transitioning to the IT staff augmentation industry was a pivotal decision rooted in my passion for technology and extensive experience. Over the past 25 years, I’ve witnessed the transformative power of technological advancements firsthand and developed a deep understanding of the needs and challenges within the Israeli hi-tech industry. Israel’s innovation potential is indeed immense. To harness this potential, companies require access to top talent, which is crucial for driving technological advancements and maintaining a leadership position in the global market. This need for skilled professionals is where our IT staff augmentation services come into play. By providing Israeli companies with the right talent at the right time, we help them realize their innovative potential and sustain their competitive edge globally. Our role in building dynamic teams becomes a key to their ability to innovate and excel.”

Global Challenges and Unique Strategies

Q: The tech landscape is known for its competitiveness. Andrii, how did you tackle the challenges of scaling globally?

Andrii: “Our initial venture into the global market began in Israel, chosen largely through intuition rather than extensive market research. Understanding the local culture and business environment is always at the core of scaling globally. But there is always much to learn on the spot. At that time, I hadn’t fully grasped the dynamism of the tech market there, nor the power of its software projects. I was truly impressed by the startup companies and their potential. More importantly, I was drawn to the high business speed. Israel is hyperdynamic. The speed at which Israeli businesses make decisions, move forward, and deliver results is astonishing. Their pace resonated with me and propelled me forward. I had heard that these were challenges for many companies, but not for me. On the contrary, they inspired me.”

Israel is hyperdynamic. The speed at which businesses make decisions and deliver results is astonishing.

Distinguishing Factors in Service Quality

Q: With intense competition, what sets your company apart regarding service quality and client satisfaction?

Andrii: “What truly sets us apart in IT staff augmentation is our combination of deep technical expertise and a profound understanding of our client’s needs, stemming from my firsthand experiences as a former customer in the tech industry. We don’t just meet expectations; we anticipate and address customer needs meticulously. It reflects our ability to tailor solutions that fill roles and significantly enhance our client’s business strategies. Moreover, our adaptability in a rapidly evolving market distinguishes us. We pride ourselves on our agility in adjusting swiftly to market dynamics and client requirements, allowing us to provide relevant and effective solutions continually. This approach has fostered lasting partnerships. For example, a startup we began supporting in 2017, starting with a small team, evolved into a full R&D department. This collaboration contributed to the startup’s growth and successful $150 million sale, highlighting the tangible results of our commitment. Our dynamic team scaling and alignment with client objectives solidify our reputation as a service provider and a genuine partner in their success.”

We don’t just meet expectations; we anticipate and address customer needs meticulously. It reflects our ability to tailor solutions that fill roles and significantly enhance our client’s business strategies.

The Israeli Tech Ecosystem

Q: Turning to the Israeli tech scene, Victor, what do companies there seek in outstaffing partners?

Victor: “In Israel, tech companies, particularly startups and SMEs, prioritize quick access to top-notch talent with highly specialized, often ‘unicorn’ skills. They require scalability and the flexibility to adjust their teams swiftly—scaling up or down in response to shifts in market demands, project requirements, or budget changes. Moreover, cultural alignment is crucial; Israeli firms expect outstaffing partners to provide proactive and committed teams that can integrate seamlessly. Our role is critical in accelerating product development cycles and meeting stringent deadlines. We achieve this by offering efficient recruitment processes, streamlined onboarding, and the rapid deployment of skilled developers. This approach helps Israeli companies maintain a competitive edge and shortens the time to market for new products. Our local presence and deep understanding of the Israeli tech ecosystem are key to effectively fulfilling these needs, ensuring we align closely with client expectations and project goals.”

Our role is critical in accelerating product development cycles and meeting stringent deadlines, which not only helps maintain a competitive edge but also shortens the time to market for new products.

The Future of IT Staff Augmentation

Q: Looking ahead, how do you see the role of IT staff augmentation evolving?

Andrii: “IT staff augmentation is becoming increasingly vital within the ever-evolving tech ecosystem, especially post-COVID-19, which has significantly shifted the business landscape and spiked demand for such services. At Newxel, we’ve seen that effective staff augmentation extends far beyond simple recruitment; it requires a deep operational commitment to building and integrating core teams that align with specific business objectives. For startups and SMEs, this presents a tremendous opportunity to leverage specialized expertise that may not be readily available in-house. We help these companies not just by adding personnel but by strategically assembling core teams that propel their growth. This approach allows them to scale operations efficiently, such as opening new offices or expanding into new markets. Just a recent example—establishing R&D centers in Poland from Israel, without the overwhelming complexity of managing these expansions single-handedly.”

IT staff augmentation is not just about filling roles; it’s about strategically enhancing business capabilities.

Victor: “As our clients engage in increasingly complex projects, the demand for niche expertise, especially in artificial intelligence, machine learning, blockchain, and the Internet of Things (IoT), has surged. This need is driving a more strategic use of IT staff augmentation, allowing businesses to tap into a global pool of specialized talents without the overhead of expanding in-house teams. From my experience, leveraging staff augmentation not only enhances operational efficiency and reduces costs but also plays a pivotal role in fostering innovation and accelerating growth across various tech domains.“

Success Stories and Strategic Impact

Q: Andrii, can you share a success story highlighting the impact of your services on startups and tech SMEs?

Andrii: “I’m thrilled to share a couple of success stories that showcase the transformative impact of our IT staff augmentation services. One striking example is a startup we partnered with that was developing an advanced Data Warehouse system to enhance data processing and analytics capabilities. Initially, they had a core leadership team but needed a technical team to execute their vision. After engaging with us, we rapidly assembled a robust core team of over 30 specialists, which catalyzed their project and supported the company’s expansion into building R&D teams across multiple regions. 

A highly potential cybersecurity company that gained funding rapidly expanded its development team by partnering with a remote IT staff augmentation provider, accelerating its product development and market reach. 

Another impressive case involves a client that grew from a startup phase into a unicorn status and successfully went public with an IPO earlier this year. Throughout their journey, our staff augmentation services played a pivotal role in their scaling efforts, helping them adapt and expand efficiently. The beauty of our service is that at any stage of the company, we see the success and how we contribute to it. These experiences underscore how our strategic support in staff augmentation can expedite growth and facilitate market expansion for startups and tech SMEs, proving essential in their paths to success.”

Our strategic support in staff augmentation can expedite growth and facilitate market expansion for startups and tech SMEs.

Guidance for Global Scaling

Q: Lastly, what advice would you give aspiring entrepreneurs and tech leaders looking to navigate the challenges of scaling their businesses globally?

Andrii: “When scaling globally, passion is key. Aspiring entrepreneurs and tech leaders should deeply engage with their work and cultivate a robust team eager to face and overcome challenges. Acting quickly and maintaining flexibility are crucial in the fast-paced global market. It’s essential to go beyond consistently meeting customer expectations.

Additionally, pay attention to the importance of strategic partnerships. They can provide essential insights and entry points into new markets, enhancing your ability to navigate new territories effectively. These collaborations can amplify your capabilities and aid your global expansion efforts.”

Victor: “It’s essential to center your strategy around your customers. Prioritize delivering exceptional experiences at every interaction, actively listen to feedback, promptly address needs and concerns, and continuously strive to exceed customer expectations. Finally, as you expand globally, remain committed to your core values, mission, and purpose. Maintain integrity, transparency, and ethical practices in all interactions. Strive to impact society and the environment through your business endeavors positively. This balanced approach will not only help in successfully scaling your business but also in building a sustainable and respected global presence.”