- Professionalism and experience
- Cheaper
- Simple management
- Reduced overhead
- Faster
- Higher quality
- Guaranteed results
Benefits of Outsourcing
Each development project is unique and requires undivided attention of a professional product team. We try to prepare personalized quotes for each client, offering a choice among several alternative pricing options. A price quote for a particular project depends on a multitude of factors, such as complexity, duration, resource availability, etc.
The total cost of the project mostly depend on the following key factors:
- Duration and continuity
- Urgency
- Total number of people engaged
- Complexity, technologies, and skills
- Breakdown of total workload load by skills / personnel
The table below may give you some ideas about the rates that might be applicable to your project: 1
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On the other hand, the applicable rate may be a combined rate (one average number) based the mixture of people of different skills involved in your project. Alternatively, for large-large scale we can specify rate rather per man-month or man-day.
While the cost per hour might be slightly higher than rates charged by some software development companies located in India, for example, we guarantee that the total cost of the project of the same complexity and delivered to the same quality standards is the lowest with DevTeam compared to any competitive offer. The hypothetical example below illustrate the costs and factors that you should consider in choosing whether to use DevTeam, in-house personnel, or another outsourced software development company.
You can boost productivity of your existing software development team by temporarily engaging ('renting') our staff in the project.
We are ready to send you project cost estimates, as soon as you provide us with a brief project description. Please contact us for more detailed information.
Hypothetical Example
In-house vs. Outsourcing Cost
Let's assume you are considering hiring a Visual Basic programmer to write special software for your manufacturing company. You are thinking about hiring somebody straight out of college on a full-time basis for $40,000 per year, 12-month contract (according to JobWeb, the average starting salary in 2005 for Bachelor's degree graduates with the Information Sciences & Systems major was $44,775, Computer Science - $50,820, Systems Engineering - $50,887, and Computer Engineering - $52,464). The current estimate is that it will take 960 hours to develop this software. You expect that you will save at least $5,000 per month after you implement the new software (actually you are losing that much every months that you are not using the new software).
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As you can see the true in-house cost of software development in the best-case scenario applicable to this project is $48.33 per hour instead of the $24.17 per hour based on the wrong assumptions.
Cost per Hour vs. Total Cost
It turns out that the recently hired software developer cannot work more than 128 productive hours (software development seminars, learning new technologies, sick leaves, etc.), it will take him about 7.5 months to complete the project in the best-case scenario. Since this is his first real-life, medium-complexity project and he has no experience in managing projects, it may easily take him 10-12 months to complete it (there is a chance that he will not finish this project before the end of his employment contract, and you don't really want to extend it after it or hire somebody else to finish the job).
You consider using DevTeam at $25.00 per hour (the rate that was quoted to you based on your project's requirements) instead. Because 3 software developers will be assigned to work on your project, the project will be completed in less than 3 months. Taking into consideration the fact that each member DevTeam's staff working on your project has several years of software development experience (something that your company can acquire for at least $70,000 per year per person, or $36.46 in the best case).
You were also approached with an email message by some company and they offered you an unbelievably low rate of $12.00 for software development. So, you decided to go with them. There was no clear stipulation in the agreement about the time when the project shall be completed. So despite the fact that the outside contractor dedicated 2 people to the project, it took them 1,140 development hours (that you were billed for) and about 6 months to complete the project. The table below summarizes all three options that were available to you and associated costs:
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So, despite the seemingly higher cost per hour ($25.00 with DevTeam vs. the lowest possible $24.17 per hour with in-house development and $12.00 with another contractor), the total costs with DevTeam are significantly lower (about 40 percent of the total in-house development costs and about 80 percent of the costs of another provider that offered a rate more than 2 times lower than DevTeam's one). So from now on, you know and tell everybody else who is inquiring you about your experience in outsourcing software development to other companies that DevTeam is the best choice for software development.
1 To get the lowest rate possible, you have to order more than 1 man-month (128 hours per month) of services of one type (i.e. graphics design or .NET development) for 2 or more consecutive months. The table above is given for reference purposes only, does not constitute any binding agreement or a price quotation, and does not guarantee in any way that you will receive any rate specified in it for your project. Contact us with your project requirements for a price quote.
