The Financial Benefits of Outsourcing Software Development

Outsource software Development
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Software development skills are a hot commodity in Canada.

Large corporations to new start-ups are rushing to find an ideal developer for their short-term and long-term projects, from junior software developers to highly skilled, seasoned data scientists and application developers for android and iOS.

The market is heating up, and finding developers is no easy task.

In Canada, the average going salary for software developers in Canada is close to $92,000/year in 2021, according to Glassdoor.

In-house vs. Outsource

And salaries are not the only expense you need to consider, the cost of recruitment and the cost of time lost while interviewing.

This article will review and compare the costs of in-house vs outsourcing and show you why outsourcing makes good sense.

Outsource software Development


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In-House: Salary

Let’s take the average software developer who makes about 92,000/year. That’s about $8,364 per month and $52 per hour, considering full-time employment.

Outsourcing: Salary‚Äč

Similarly, skilled specialists from Europe, South America, and Asia are much lower (approx $30 per hour) with an annual salary of $52,800.

However, the costs don’t include overhead, tax payments from the company, and other benefits, which push an in-house cost model higher.


On this model by outstaffing software developers, you save 52% just on yearly employee expenses.

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Timing is a Problem

As we know, getting to market with your hot new products or updates to your current products is critical to success. Hiring software developers are not easy, and companies like Google frequently spend up to 3 months to hire a candidate.

Sorting through CVs and talking with recruiters is time-consuming and costly for every business, which even more challenging for companies that don’t usually hire developers.



You also save money by speeding up the hiring process.

We’ve talked with HR managers and CTOs that have never outsourced before, and their primary concerns are typically around how the outsourced developers fit with their current team. They want the developer to feel like their in-house.

In contrast

Outstaffing services help you start working on your projects faster by providing you pre-screened, high-quality hires that have gone through hours of code interviews. The average time to hire a candidate from initial contact is around two weeks compared to 2.3 months–the time typically takes to hire and onboard.

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Want to Learn More

Every company and project is different, and before you start recruiting that new house employee, talk with us. We can get you up running faster, at half the cost, with a highly skilled developer that will feel like they’re part of the team.


Get Started Now

Our team of account managers can meet with you or your team members to discuss your business needs. We support companies across the globe and have support teams in Canada, the United States, and Europe.

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