In house vs Offshore Employee Cost Comparison Calculator

Offshore Cost Calculator



Total Cost: $0

Average Costs

Aspect In-House Employee Offshore Employee
Monthly Salary $6,000 $1,500
Benefits $2,000 $500
Office Space $1,500 $0
Equipment $1,000 $0
Training $500 $200
Total Monthly Cost $11,000 $2,200

In-House vs Offshore Employee Comparison

AspectIn-House EmployeeOffshore Employee
CostHigher salary, benefits, and overhead costsLower salary, reduced benefits, and overhead
ControlDirect oversight and controlIndirect control, managed remotely
CommunicationEasier with face-to-face interactionsPotential challenges due to time zone differences and remote nature
Hiring ProcessTypically longer and more rigorousGenerally faster, access to a larger talent pool
Cultural FitEasier to integrate into company cultureMay require additional efforts to align with company culture
Skill AvailabilityLimited to local talent poolAccess to a global talent pool, often with specialized skills
FlexibilityLess flexible, full-time commitmentsMore flexible, can be hired on a project or contract basis
Infrastructure CostHigher costs for office space, equipment, etc.Lower costs, no need for physical office space or equipment
Onboarding TimeLonger onboarding and training periodShorter onboarding, often ready to start immediately
RetentionPotentially higher turnover ratesPotentially lower turnover, especially with contract-based work
Work HoursStandard business hoursMay work during different hours, depending on the time zone
Legal and ComplianceMust comply with local labor laws and regulationsMust comply with both local and international labor laws and regulations
Team CollaborationEasier team collaboration and integrationRequires effective remote collaboration tools and strategies
ConfidentialityHigher control over sensitive informationRequires stringent measures to protect confidentiality remotely
ScalabilitySlower to scale up or downEasier to scale up or down based on project needs
Response TimeFaster response and issue resolutionPotential delays in communication and issue resolution
Employee EngagementEasier to engage and motivateMay require extra efforts to ensure engagement and motivation remotely
Overall ManagementMore straightforward with direct supervisionRequires effective remote management strategies and tools
Cost EfficiencyHigher overall costsSignificant cost savings due to lower salaries and reduced overhead