Offshore Development Team Cost Calculator
Offshore, nearshore or in-house — total cost including overhead and overlap loss.
How this number is built
Doing it by hand
Step 1
Define scope precisely — vague scope costs more offshore than locally.
Step 2
Get the blended rate covering all seniority levels you actually need.
Step 3
Add management overhead: someone on your side runs this, and that time is real.
Step 4
Count ramp-up honestly; the first two months rarely deliver full output.
Step 5
Compare against a fully loaded local cost, not against local salary alone.
What people ask next
Is offshore always cheaper?
On rate, almost always. On total delivered value it depends on scope clarity, overlap hours and how much management attention you can supply.
Dedicated team or project based?
Dedicated suits evolving products. Project-based suits a fixed, well-specified deliverable where you want the vendor to carry scope risk.
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