Blog > Software Outsourcing: Total Cost of Engagement
Hourly rates are important to consider but the Total Cost of Engagement, or TCE, is important for your budgeting process. The TCE is a complex cost factor separate from compensation or hourly rate. When hiring your own developers in-house, for instance, TCE includes a base hourly rate, plus taxes, healthcare, retirement plans, vacation, etc. Comparatively, when you outsource, many of the in-house costs disappear, but it's important to be mindful of other costs you may not consider right away.
For instance, an offshore developer in a remote part of Southeast Asia might quote you an amazing rate, but management and travel costs should be added to the TCE. Most outsourcing experts suggest that the TCE can be as high as 30% on top of your budget, so it’s important to consider the costs when making an outsourcing decision.
The2018 Guide to Global Software Outsourcing Rateswill help you answer the question: how much does it cost to outsource software development. Download the guide below.
We’ve investigated 8,000 software companies around the world so you can outsource with confidence.
Want to know who to trust? Talk to us.
Learn more about successful outsourcing and get the latest from Accelerance.