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Cost Comparison – Offshore VS Onshore Teams

 

Offshoring has become really popular, especially when it comes to web and mobile development. This is a trend mostly observed in recent times where companies have wanted to focus on their core business processes.

Hiring an experienced developer in the US/UK/Europe costs upwards of $100,000/annum including salary and other benefits. A similar resource from India would cost around $20,000. This is one fifth cost of hiring in-house teams.  it definitely makes more business sense to hire a team of developers working offshore, at the cost of a single developer who works in-house. This is not all offshoring saves on the following addition costs:

  1. Employment benefits
  2. Space and infrastructure
  3. Costs of hiring and retention

According to Indeed the average a software developer in the US is $95k.

Disadvantages of hiring in-house teams include:

  1. One has to comply with employment regulation in the US
  2. Employee compensation and benefits have to paid to in-house teams
  3. The infrastructure and space costs of hiring in-house resources, is much higher in case of on-shore teams.

Advantages of hiring offshore teams:

  1. Offshore teams work with best-in-class infrastructure and technology
  2. Latest cloud tools help in simplified management
  3. Online tests can help in hiring quality resources
  4. The offshore outsourcing companies offer a dedicated project manager to ensure timely delivery of projects

Most IT organizations that outsource their services to offshore companies say that their cost has been lower than it was while hiring in-house resources. The following data supports the claim:

Businesses looking to hire expert offshore teams must choose a professional agency like ValueCoders for:

  1. Hassle free and quick hiring
  2. Non disclosure agreement
  3.  Timely project delivery

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