When comparing costs, managers only tend to look at salaries vs hourly rate. However, it is more complicated than that. Commonly overlooked factors include the time spent on recruiting, missed opportunities, project delays, training people, employee benefits, and more. These can add up to an additional 29% of an employee’s annual salary. When taking this into account, it may be more cost-effective to outsource your software development.
Also, when hiring in high-cost cities like Boston, New York, and San Francisco, you have to pay higher salaries with better benefit packages. By outsourcing your software development to areas with a lower cost of living, you can tap into a high-quality, pre-vetted talent pool, while saving costs and aligning on time zones.