To compare an offshore hire with a local hire fairly, add up the full cost of each. For a local employee that means salary plus payroll taxes, benefits, paid time off, equipment, software, office space and recruiting. For offshore staff through delegateit, it means the monthly plan, which starts at $1,500 for a full time assistant, plus software and your management time. Then weigh factors like overlap hours, the type of work and how much in person presence matters.
The headline number is easy. Salary versus monthly fee. But headline numbers mislead. A local hire costs a lot more than their salary, and an offshore hire has costs beyond the monthly plan. If you want a fair decision, you need to compare total cost for the same work.
This post gives you a simple worksheet to do that with your own numbers.
The local hire side
Start with the salary you would actually need to pay in your market for the role. Look at real job postings in your area for similar positions or ask a recruiter. Then add the rest.
Employer payroll taxes
In the United States, employers pay their share of Social Security and Medicare plus federal and state unemployment taxes. The exact amount depends on salary and state. Your payroll provider can tell you.
Benefits
Health insurance, retirement contributions and any other benefits you offer. Health insurance alone can be a large share of total cost for small employers.
Paid time off
Vacation, holidays and sick days are paid days without work. Factor them in when you think about cost per productive hour.
Equipment and software
A computer, phone, monitors and the software licenses the role needs.
Office space
If the person works on site, a share of rent, utilities, furniture and supplies. If they are remote, you might cover a home office stipend.
Recruiting and onboarding
Job board fees, recruiter fees if you use one and the time you spend interviewing and training.
Turnover risk
If the hire leaves within the first year, much of the recruiting and training cost repeats.
Add all of these and divide by twelve to get a true monthly cost. Many owners are surprised by how far above the salary it lands.
The offshore side
The monthly plan
At delegateit, full time assistants start at $1,500 a month for about 160 hours, part time from $900 a month for about 80 hours and specialists from $2,200 a month. The plan covers sourcing, screening and ongoing support. See our pricing page for detail.
Software
You will still pay for the software your assistant uses, just as you would for a local hire.
Management time
Remote staff need clear instructions and regular check ins, especially in the first month. Budget your own time honestly. Our guide on how to manage remote staff can help you keep it efficient.
Time zone tradeoffs
If you need real time overlap, your assistant may work a night shift in the Philippines. That is common and well established, but it is worth talking about when you plan the role. See our time zone guide.
For a fuller list, read our post on the hidden costs of offshore hiring.
A simple worksheet
Build two columns and fill in your real numbers.
- Base pay or monthly plan
- Payroll taxes and benefits, local only
- Paid time off and holidays, local only
- Equipment and software
- Office space, local only
- Recruiting and onboarding, spread over a year
- Your management time at a fair hourly value
- Total monthly cost
Then add a row for productive hours per month in each case. Divide total cost by productive hours to get a cost per hour of real work. That is the number to compare.
Beyond cost
Cost is important, but it is not the only factor. A few questions to ask yourself follow.
Does the role need physical presence?
Receptionists who greet visitors, warehouse staff and field technicians need to be on site. Offshore staff fit work done on a computer and phone.
How much real time collaboration is needed?
Some roles need constant back and forth during your day. Others can run on a daily handoff. Both can work offshore, but the setup differs.
Are there data or regulatory limits?
Some industries have rules about where data can be accessed. Check before you hire. Healthcare is one example where you should review requirements carefully.
What is your growth plan?
If you plan to add several roles, the savings from offshore staff can fund more hires or other investments.
An example of the thinking
Imagine you need someone to handle scheduling, inbox triage, CRM updates and invoicing for about forty hours a week. In the local column you write the salary from real postings in your area. Add payroll taxes and the benefits you offer, then a desk and a laptop. Add the recruiter fee spread over a year. In the offshore column you write the full time plan, the same software and a few extra hours of your time in the first month for training.
You do not need perfect numbers. Rough estimates are fine as long as you fill in every row in both columns. The gap you see at the bottom is the real tradeoff, and you can then weigh it against the non cost factors above.
Mixing local and offshore
Many companies do both. Local staff handle in person work, client relationships and leadership. Offshore staff handle admin, operations, production and support. The combination often gives you more coverage for the same budget. Our post on outsourcing vs offshoring explains the different models.
Quality and retention
Lower cost does not mean lower quality when the hire is done well. Screening, onboarding and fair treatment matter just as much offshore as locally. Dedicated staff who are treated as real team members tend to stay, which protects your investment in training. Our guide to retaining offshore staff covers what helps.
Running the comparison honestly
It is tempting to make offshore look great by leaving out management time, or to make local look great by ignoring benefits. Do neither. Put in honest numbers and you will see the real tradeoff. For some roles, local will win because presence or collaboration matters. For many admin and operations roles, offshore will win clearly.
Either way, you will make the decision with your eyes open. Save the worksheet and revisit it once a year, since salaries, benefits and your own needs change over time.
Cost comparison questions
Is offshore staff always cheaper?
For many computer based roles the total cost is lower, but run the numbers with your own local salary data and include management time.
What does the delegateit monthly plan include?
The plan covers a dedicated team member for the stated hours plus sourcing and ongoing support. Software is usually paid by the business.
Do offshore staff get paid time off?
Policies vary. Ask about holidays and leave so you can plan coverage. Our post on Philippine holidays explains the calendar.
How do I account for my management time?
Estimate the hours you will spend each week on instructions and check ins, multiply by a fair hourly value and include it in both columns.