Outsourcing Cost Calculator: How Much Will You Save?
Calculating outsourcing savings requires comparing total cost of employment — not just salary. This guide provides the formulas and benchmarks to calculate your exact savings when moving from local hiring to offshore staffing through ShoreAgents.
Key Data: Total cost formula: Local hire = salary × 1.4-1.7 (add benefits, taxes, overhead). Offshore VA = monthly rate × 12 (all-inclusive). Example: Local admin at $50K salary = $70K-$85K true cost. ShoreAgents VA = $18K-$28K/year. Annual savings: $42K-$67K per position. For 3 positions: $126K-$201K/year.
Key Areas
- Local cost calculation — salary + benefits (20-30%) + payroll taxes (8-10%) + overhead (15-25%) + turnover (15-20%)
- Offshore cost calculation — monthly VA rate × 12 months (includes everything through a provider)
- Savings by role — admin: save $45K-$55K/yr; bookkeeper: save $35K-$48K/yr; customer service: save $40K-$50K/yr
- Break-even timeline — most businesses see positive ROI within 30 days of VA starting
- Scaling economics — savings compound with each additional VA; 5 VAs save $200K-$300K/year
- Non-financial benefits — time reclaimed, scalability, reduced management burden, 24/7 coverage potential
For related resources, explore how a dedicated how much does a cost VA can transform your operations, explore our comprehensive resource on this topic, explore our comprehensive resource on this topic, the benefits of hiring a remote pricing specialist, offshore general solutions for pricing.
Getting Started
ShoreAgents connects you with dedicated Filipino professionals at 70-80% lower cost than local hires. Start within 2 weeks. Explore virtual assistants and outsourcing from ShoreAgents.