Aspire Systems WP Off Shore Page 9
WHITE PAPER: Offshore Software Development
Aspire Systems, Inc.
www.aspiresys.com Page 9 of 17
Let's analyze a couple of scenarios where projects of varying sizes are carried out at an offshore
center and evaluate the resulting cost savings.
5.1 Scenario
1
This scenario is applicable to a trial project that you might want to test out with your potential
offshore partner. Let's assume just a 5 man-month project (800 hours) and work out the costs.
Typically a project of this size does not warrant deploying the onsite/offshore model. In other
words, there would not be a need for the vendor firm to have a constant onsite presence and
most of the coordination required can be done through phone and emails.
Offshore Development
Internal Development
Team
Primary
Location
Hours
Rate Per
Hour
Total
Hours
Rate
Per
Hour
Total
Project Manager
Offshore
240
$30.00
$7,200.00
160
$50.00
$8,000.00
Software Engineer
Offshore
480
$20.00
$9,600.00
480
$40.00
$19,200.00
QA Engineer
Offshore
160
$20.00
$3,200.00
160
$40.00
$6,400.00
TOTAL
880
$20,000.00
800
$33,600.00
Savings
:
$13,600.00 or 40.48%
