Equipment and overhead
Except for the hiring expenses, developers’ salaries, benefits, and social security contributions, companies will also need to cover indirect costs. These expenses include office rent, office space use (heat, light, and more), office equipment and consumable supplies such as laptop and software, accounting services, payroll services, legal and audit fees, travel and entertainment costs, internet costs, etc.
On average, a company pays for each developer a one-time overhead expense to cover computer setup, software, and furniture cost, of around $3,000.
Annual Cost of an In-House Developer in the US
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Choosing to outsource software development brings several cost reductions. You will be able to save not only on the developer’s salary but also on hiring, benefits, social security contributions, and overhead.
Software Development: which option is more beneficial?
It’s important to think carefully about how you want to organize the development process for software and applications; the main question is: should you outsource or work in-house?
Many companies use outsourced software development services to cut costs, save time, and find competent staff. That’s because the market of IT outsourcing (estimated to reach $96.7 billion in 2021) provides a huge pool of technical specialists that have both knowledge and experience. This means that the hiring process can take just a few days and provide unlimited hiring opportunities.