The financial benefits of offshore staff augmentation and EOR for an SME

In a context where margins are tightening and the war for talent is intensifying, every SME leader faces the same challenge: how to grow the business while controlling salary costs and risks?

Offshore staff augmentation (portage salarial offshore) and the Employer of Record (EOR) model appear to be two strategic answers. But beyond the rhetoric, what are the real, measurable savings? Which performance indicators do they concretely improve? And above all, what tangible short, medium, and long-term benefits can an SME expect?

This article provides a quantified and documented analysis of these solutions to help you measure their true impact.

 

The current pressure on SMEs: Key figures

Before discussing savings, we must understand the starting point:

  • The average cost of an executive employee in France (gross salary + employer contributions) is around €70,000/year.
  • The cost of an IT developer in the Paris region often exceeds €55,000 gross/year, totaling more than €80,000 including charges.
  • Average recruitment times for a qualified profile are 2 to 6 months, with a high risk of turnover (up to 25% in certain support or IT functions).
  • Indirect costs (time spent on recruitment, training, onboarding, contract termination) represent an average of 20 to 30% of an employee’s total cost.

In short: for an employee paid €40,000 gross/year, the SME often spends €60,000 to €65,000 in real terms.

 

Direct savings with offshore staff augmentation and EOR

A massive reduction in salary costs

  • In Madagascar, an equivalent profile (e.g., administrative assistant, junior web developer, customer support) costs up to 70% less.
  • In Mauritius, intermediate or expert profiles cost an average of 50% less than their French counterparts.

 

Concrete example:

  • Confirmed developer in Paris: €80,000 / year.
  • Confirmed developer in Mauritius via BridgePerfect: €28,000 / year (charges included).
  • Net saving: €52,000 per year, or -65%.

Reduction of fixed and structural costs

Recruiting locally means: offices, equipment, HR fees, tools.

With BridgePerfect, all this is included or managed locally:

  • Equipped office in Mauritius or Madagascar
  • Secure high-speed internet connection
  • Complete HR management (payroll, contract, social benefits)

An SME saves an average of €10,000 to €15,000 per employee per year in indirect costs.

Gain on legal and labor risks

In France, a poorly managed contract termination can cost 6 to 12 months’ salary.

With offshore staff augmentation or EOR:

  • No labor risk (prud’homal) in France
  • Compliance guaranteed by the local employer (BridgePerfect)
  • Contractual flexibility (minimum 6 months, renewable)

Benefit: Legal risk reduced to zero.

Indirect benefits: Performance and agility

Speed of implementation

  • In France: Recruitment time 2 to 6 months.
  • Offshore (Mauritius/Madagascar): 7 to 15 days for an operational profile.

This represents a gain of 2 to 5 months of productivity.

Access to new talent pools

  • Madagascar: Strong expertise in back-office, customer support, digital training.
  • Mauritius: Regional hub for IT, digital, finance, multilingual support.

You open your recruitment to thousands of qualified profiles.

Impact on growth

An SME that outsources 5 employees to Madagascar saves €150,000 to €200,000 per year.

These savings can be reinvested in:

  • R&D
  • Client acquisition
  • International development

 

Concrete and quantified case studies

Case n°1: B2B training organization

  • 7 outsourced employees (online trainers, back-office management).
  • Saving: -67% on the salary bill.
  • Result: +23% client satisfaction, +37% responsiveness on files.

 

Case n°2: SaaS editor

  • 4 bilingual technical support employees in Mauritius.
  • Saving: €180,000/year.
  • Result: 0% turnover in 18 months, improved 24/7 availability.

 

Case n°3: Accounting firm

  • Accounting data entry outsourced to Madagascar.
  • Saving: -60%, or €120,000/year.
  • Result: Processing time divided by 2.

 

Comparative table of benefits

BenefitsOffshore staff augmentationEOR
Salary savingsUp to -67%Up to -67%
Implementation time7 to 15 days7 to 15 days
Legal riskZeroZero
ProfilesComplete sourcingAlready identified profiles secured
FlexibilityHighMedium
Indirect costsIncludedIncluded

 

FAQ

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On average between 50 and 67% of the total salary bill, depending on the type of position and the country.

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Between 7 and 15 days, depending on the complexity of the position.

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Customer support, IT, back-office, digital training, finance/accounting.

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No, because profiles are selected based on skills and training. In Mauritius particularly, proficiency in both French and English is a major asset.

 

Conclusion and call to action

Offshore staff augmentation and EOR are not just cost-saving solutions. They are strategic levers that transform how an SME can grow.

With savings of up to €200,000 per year for a small team, rapid implementation, and total compliance, these models offer a concrete answer to leaders concerned with profitability, agility, and competitiveness.

BridgePerfect already supports French SMEs in training, digital, SaaS, and professional services.

Request a free strategic audit today or test our confidential HR simulator to measure your savings.

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