Comparison Guide

Cost of In-House vs Offshore Engineering Team

Founders often underestimate the true cost of an in-house engineering team. Salary is only the beginning. Here is a realistic cost comparison between a US in-house developer and a premium offshore developer at DelhiStack.

ADelhiStack Offshore Developer

Pros

  • Flat monthly rate (starting $3,500/mo)
  • Zero recruiting or headhunter fees
  • No payroll taxes, benefits, or hardware costs
  • Onboarded and coding within 72 hours
  • Scale down immediately if funding tightens

Cons

  • Remote-only collaboration
  • Timezone management required (though we overlap 4-5 hours)

BUS In-House Developer

Pros

  • Same timezone and physical office presence
  • Easier casual 'watercooler' communication
  • Highest possible alignment with local culture

Cons

  • Base salary: $130,000 - $180,000/year
  • Hidden costs (taxes, benefits, equity): +30% to base
  • Recruiting fees: 20% of first year salary ($26k+)
  • Takes 2-3 months to hire and onboard
  • Difficult and expensive to terminate
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The Verdict

A single mid-level US engineer will cost your company over $180,000 per year fully loaded. For the exact same budget, you can hire an entire autonomous Agile Pod (PM, 2 Senior Engineers, QA, Designer) at DelhiStack.

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