Software Developer Salary Calculator:
Ukrainian vs USA Devs

Outsourcing Calculator: What’s That and How to Use It?

Our Outsourcing ROI Calculator is a handy tool designed to help businesses estimate the costs associated with outsourcing various tasks or projects.

We designed it for businesses and aspiring entrepreneurs who are considering outsourcing various tasks or projects.

It helps estimate the costs associated with tasks like web development and app development outsourcing.

The calculator takes into account factors such as labor rates, project complexity, and overhead expenses. It takes into account multiple factors to provide an estimate of how much outsourcing a particular specialist might cost.

If you are new to outsourcing, feel free to check out our simple guide on outsourcing pros and cons.

Now, let’s get into our outsourcing costs calculator.

How to Use the Outsourcing Cost Calculator?

Before you get into calculations, make sure you have these things covered:

• Clearly outline the scope of your project. Consider aspects such as development, design, testing, and project management.

• Identify key metrics relevant to your project. These may include the number of developers, designers, QA specialists, and other team members required.

Now, it’s time to count. Simply choose the level of specialist you want to hire (Junior, Middle, Senior, Architect) and select the type of product you’re building – a web app or mobile application.

You’ll get an approximate cost of the required specialist.

The salary is based on the skill set required for each particular developer level.

Skilled junior developer:

• Up to 3 years of commercial experience

• Proficient knowledge of the frameworks

• Basic knowledge of algorithms

• Ability to set up a project from scratch

• Knowledge of libraries implementation

• Decent understanding of DOM API

• Thorough familiarity with databases and GIT

Middle-level developer:

• Up to 5 years of commercial experience

• Everything that a junior developer knows

• Excellent knowledge of frameworks

• Proficient knowledge of algorithms

• Ability to mentor others, up to 2 developers

Senior-level developer:

• Up to 8 years of commercial experience

• Everything that a middle developer knows

• Excellent knowledge of frameworks

• Advanced knowledge of algorithms

• Ability to mentor others, up to 5 developers

• Ability to plan an architecture for a middle-complexity application from scratch

Architect developer:

• 8+ years of commercial experience

• Everything that a senior-level developer knows

• Ability to mentor others, up to 8 developers

• Ability to plan an architecture for a high-complexity application from scratch

• Ability to architect a solution for complex business processes

Are you unsure whether you need a middle or senior developer? We’re here for you! Tell us about your project, and we will select the best fit for you.

During a short consultation, we will compare in-house vs. outsourced costs and discuss hidden costs associated with in-house teams, such as long-term contracts, sick leave, bonuses, and health insurance.

You’ve Calculated Outsourcing Cost – Now What?

Now that you have the figures, it’s time to take strategic steps.

Here’s what you can do next:

• Compare the calculated outsourcing cost with the potential benefits. Consider factors like quality, speed, scalability, and expertise. Ensure that the benefits outweigh the costs.

• Assess the risks associated with outsourcing. Consider factors such as data security, communication challenges, and cultural differences. Mitigate risks by choosing reliable partners and setting clear expectations.

• If you decide to proceed with outsourcing, choose a vendor carefully. Look for experience, track record, and alignment with your project goals. Request references and evaluate their work.

• Negotiate contracts with transparency. Define deliverables, timelines, payment terms, and exit clauses. Ensure legal compliance and protect your interests.

• Establish effective communication channels with the outsourcing team. Regular updates, progress reports, and feedback loops are essential for successful collaboration.

Once everything is in place, kick off the project. Set clear milestones, monitor progress, and address any issues promptly.

Remember, outsourcing is a strategic decision. It can lead to cost savings, access to specialized skills, and scalability. However, thorough planning and ongoing management are crucial for success.