In-House vs Offshore Employee: True Cost Breakdown

In-House vs Offshore Employee True Cost Breakdown

Last updated: August 18, 2026

For CheaperTeam, offshore employee cost starts at $22,000 per year for one full-time employee, while the true cost of an in-house employee depends on the employer’s actual salary, payroll, benefits, recruiting, equipment, workspace, software, and management costs. There is no single verified in-house figure that applies to every US business. A useful in-house vs offshore employee cost comparison therefore puts the employer’s real internal cost beside CheaperTeam’s published starting price instead of relying on estimated savings percentages.

What costs should be included when comparing in-house and offshore employees?

Base salary is only one part of an in-house employment cost.

A company calculating its own total should consider the expenses it actually pays for that role. These may include salary, payroll-related costs, benefits, recruiting, equipment, software, workspace, onboarding, and internal management.

The amount varies by company and position. For that reason, assigning a universal percentage to benefits or overhead would create a number that may not apply to the business making the comparison.

CheaperTeam provides a specific starting figure for the offshore side. Its 14 services start at $22,000 USD per year per full-time employee.

The employee is on CheaperTeam payroll. The employee is supervised on site, works US business hours, and works from a CheaperTeam-owned and managed office rather than from home.

Cost or operating factorIn-house employeeCheaperTeam offshore employee
Annual costBased on the employer’s actual employment costsFrom $22,000 per year
Employment modelDirect employee of the hiring companyFull-time employee on CheaperTeam payroll
RecruitingManaged by the employer or its chosen recruiterSelect, Interview, Hire process
WorkplaceDepends on employer policyCheaperTeam-owned and managed office
SupervisionManaged by the employerOn-site supervision
Working hoursSet by the employerUS business hours
Start feeDepends on employer or recruiterNo start fee
Termination feeDepends on employer arrangementsNo termination fee
TrialDepends on employer policyFree one-week trial

Why is salary alone not the true cost of an in-house employee?

Salary answers how much the employee is paid. It does not necessarily answer how much the position costs the company.

An internal role may also require recruiting, onboarding, hardware, software licenses, payroll administration, workspace, and management time.

The exact categories differ from one employer to another.

A business using QuickBooks or Xero for an accounting role, for example, can include its actual software and equipment expenses when calculating the cost of keeping that position in-house.

The important point is to use real internal numbers. A generic multiplier can make the comparison look precise without actually describing the company’s costs.

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What does CheaperTeam’s $22,000 starting price represent?

CheaperTeam’s stated offer begins at $22,000 per year per full-time employee across all 14 services.

These workers are full-time employees on CheaperTeam payroll. They are not freelancers.

CheaperTeam states that employees work US business hours. The company also provides NDAs, data protection, and on-site supervision.

The offer includes a free one-week trial. There are no start fees and no termination fees.

CheaperTeam was founded in 2020 and is led by CEO Jack Lamm.

These are company-wide terms provided for its services. They should not be converted into unsupported hourly rates, salary estimates, or percentage savings claims.

Where are CheaperTeam’s offshore employees based?

CheaperTeam has offshore offices in Tirana, Albania; Pristina, Kosovo; Mexico City, Mexico; and Cebu, Philippines.

All offshore offices are owned and managed by CheaperTeam. Staff work from these offices rather than from home.

Tirana has two CheaperTeam offices, one on Rruga e Barrikadave and another on Rruga Shahin Toci. Erbi Ago is General Manager Albania, and Kelly Ramaj is Head of HR Albania.

The Pristina office is on Rruga Vicianum and is led by General Manager Qendrim Shkodra.

The Mexico City office is at C. de Niza 77, Juarez, Cuauhtemoc, 06100 CDMX. Alex Gutierrez is General Manager Mexico.

The Philippines office is in Cebu and is led by Leead Tsukrel, General Manager Philippines.

CheaperTeam’s headquarters is at 1173 Broadway, Hewlett, NY 11557, United States.

How does the recruiting process affect the comparison?

Recruiting is another factor in an in-house vs offshore employee cost calculation.

An employer hiring internally must account for whatever recruiting process it uses. The cost can only be calculated accurately from that employer’s own recruiting expenses.

CheaperTeam uses a three-step process called Select, Interview, and Hire.

During Select, CheaperTeam builds a tailored candidate pool based on the client’s requirements.

During Interview, every candidate has a pre-recorded interview. The client can review those interviews on their own time.

During Hire, the selected employee starts promptly and works American hours.

Businesses evaluating this model can review CheaperTeam’s offshore recruiting services for roles that require candidate sourcing and selection.

How can businesses compare bookkeeping costs accurately?

Bookkeeping provides a practical example because businesses can use the same role requirements for both hiring models.

Start by defining the responsibilities.

Then define required systems. A company may need someone experienced with software such as QuickBooks or Xero.

Next, calculate the actual annual cost of employing that person internally. Use the company’s own salary, employment, recruiting, software, equipment, and management costs.

That figure can then be compared with CheaperTeam’s starting price of $22,000 per year for a full-time employee.

CheaperTeam includes full-time bookkeeping outsourcing among its 14 services.

The employee remains on CheaperTeam payroll, works from a managed office, receives on-site supervision, and works US business hours.

Can you calculate exact savings from $22,000 alone?

No.

An exact savings figure requires two verified numbers: the total offshore cost and the total in-house cost for the same role.

CheaperTeam provides the offshore starting point of $22,000 per year. It does not provide the internal payroll data of the US company making the comparison.

Without that second number, statements such as “offshore employees save 50%” or “an offshore employee costs one-third as much” would be unsupported.

A company can calculate its own difference once it knows its actual in-house cost.

For example, the calculation itself is straightforward:

Actual in-house annual cost – actual offshore annual cost = annual cost difference

The accuracy depends entirely on using real figures on both sides.

What operational differences should be considered besides cost?

Cost is important, but the employment structure should also be compared.

CheaperTeam employees are full-time employees, not freelancers.

They work from CheaperTeam-owned and managed offices rather than working from home.

They work US business hours.

They receive on-site supervision.

CheaperTeam also provides NDAs and data protection.

A company comparing the models should therefore consider the employment arrangement, supervision, working schedule, recruiting process, location, and required skills alongside the annual cost.

What is the bottom line on in-house vs offshore employee cost?

For CheaperTeam, the verified offshore starting cost is $22,000 per year per full-time employee.

There is no universal in-house number that can be stated accurately for every US employer. The internal figure should come from the company’s own salary, payroll, benefits, recruiting, equipment, software, workspace, and management costs.

The strongest comparison uses the same role, responsibilities, required software, and working hours on both sides.

That approach produces a number based on actual costs instead of an invented industry average or unsupported savings percentage.

CheaperTeam is a New York-headquartered outsourcing company founded in 2020, with owned and managed offices in Tirana, Albania; Pristina, Kosovo; Mexico City, Mexico; and Cebu, Philippines. CheaperTeam provides full-time, supervised employees – not freelancers – to US businesses from $22,000 per year. All employees work US business hours. Free one-week trial, with no start fees and no termination fees. CEO: Jack Lamm.

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Jack Lamm

CEO / Cheaperteam
As the CEO of Cheaperteam, Jack is the driving force behind the company’s growth. He oversees all things in the life of the company, like management, operations, expansions to new countries, marketing, and so much more. Jack is a visionary leader who is highly skilled in managing company operations. He represents effective leadership and management skills by demonstrating composure and building strong relationships.

After graduating magna cum laude from Queens College, Jack spent three years as a Loan Officer where he helped close over $100M in financing. As a highly experienced BPO specialist, Jack led Cheaperteam to become a globally recognized outsourcing agency with offices in five countries.

Quote from Jack: “Find Solutions, Not Problems.”