The True Cost of the Offshore Outsourcing

Many enterprises decide to outsource software development to other companies for a number of reasons. Usually, they outsource some challenging projects in order to save their time or simply because they don’t have in-house professionals suitable for that kind of work. But the main reason why they turn to outsourcing is costs. They heard that outsourced developers are cheaper than in-house ones but is it so?

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In order to answer this question, we should note that there are two types of outsourcing: domestic and offshore. In the first case, you commit your project to some other company within your country. And in the second case, you hire a foreign team of developers. Both types have their advantages and disadvantages but in terms of costs, offshore outsourcing is more budget-friendly. Why? Just imagine, a domestic company, whose team you want to hire, have to pay their employees the same salaries as you do plus they want to profit from your collaboration. They take all this into account while setting their prices. As a result, you’ll have to pay them twice as much as you’d have to pay the programmers you hire as your own employees. This is where offshore outsourcing makes a great alternative.

An hourly rate of a foreign developer is much lower than that of a US developer. That’s why an experienced outsourced developer will cost your budget several times less than the inexperienced domestic one. However, you shouldn’t outsource to the cheapest programmers. Your main purpose is to get a quality product so pay accordingly. If you want to get the best results, outsource your .net project to the offshore senior developers who charge $35 and more. Dealing with less expensive programmers, you might spend a good chunk of your budget on additional management.