Staff augmentation can be more cost-effective than hiring and retaining in-house employees. You can eliminate costs associated with recruitment, employee benefits, health insurance, training, 401K, office supplies, and more. It is also more flexible as you can easily scale your headcount up or down based on workload demands.
A staff augmentation approach also enables you to hire developers in countries with lower costs of living which is often more cost-effective than hiring locally or in cities with a high cost of living.