WHITE PAPER: Offshore Software Development
Aspire Systems, Inc.
www.aspiresys.com Page 10 of 17
5.2 Scenario
2
Larger projects could potentially mean more savings. Let's take a look at a 120 man-month
project (19,200 hours) executed over 8 months with a 15 people team. In this case, we will
assume that the offshore team will travel to the customer's site at certain stages of the project.
Further, we will also assume that the vendor firm has a constant onsite presence at the
customer's site by having one or more of its engineers there during the entire course of the
project. Due to this fact, the customer can work closely with the vendor just as they would with
an internal development.
Offshore Development
Internal Development
Team
Primary
Location
Hours
Rate Per
Hour
Total
Hours
Rate
Per
Hour
Total
Project Manager
Offshore
1280
$30.00
$38,400.00
1280
$80.00
$102,400.00
Project Coordinator
Onsite
1280
$50.00
$64,000.00
-
-
-
Module Leaders / Architect Offshore
3840
$25.00
$96,000.00
5120
$65.00
$332,800.00
Software Engineers
Offshore
8960
$20.00
$179,200.00
8960
$40.00
$358,400.00
QA Engineer
Onsite
1280
$50.00
$64,000.00
3840
$40.00
$153,600.00
QA Engineer
Offshore
2560
$20.00
$51,200.00
-
-
-
Travel Expenses
$24,000.00
-
TOTAL
19200
$516,800.00 19200
$947,200.00
Savings
:
$430,400.00 or 45.44%
6. HOW TO GO OFFSHORE?
When presented with the offshore option, several firms come up with the question "What's the first
step in going offshore?" Well, here's how you go about doing it.
STEP1: TRIAL PROJECT
All said and done, "the proof of the pudding is in the eating". In order to be convinced of the
benefits of offshore outsourcing, you need to necessarily try out an offshore vendor. But before
entrusting your major projects to an unknown vendor, make sure that you have tried them out
with a trial project.
STEP 2: CONTINUING ON A PROJECT BASIS
