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Outsourcing Savings Example

Typical In-house Programmers

Intermediate programmers: $50,000.00 + 30% overhead:

$65,000.00 annual each

For four programmers annual cost:

$260,000.00

Programmers Sourced Internationally

Intermediate programmers: $22,500.00 + 0% overhead:

$22,500.00 annual each

For four programmers annual cost:

$ 90,000.00

Annual Savings for Outsourcing

Intermediate programmers: $65,000.00 - $22,500.00 : $42,500.00 each

For four programmers cost : $260,000.00 -$90,000.00 : $170,000.00

Percentage savings 100% x 42,500/65,000=65%


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