Should You Hire an In-House Developer or Outsource Overseas or Outsource to a Jax Code Team in the U.S.?

Don’t hire one full-stack developer. Hire a team for less money!

 Jax CodeDirect HireOutsource Overseas
Cost per Year$72,000 ($6K/month)
For a team
Month to month contract
$100,800 ($8,400/month)
$72,000 + $28,800 = $100,800
Salary + employment taxes & benefits
Average Salaries w/o taxes and benefits
Entry Level: $40-$50,000/year
Mid Level: $60-$100,000/year
Senior Level: $100-$300,000/year
$62,400 ($5,200/month)
May seem like the cheapest option
but there are hidden costs
and poor quality.ZDNet: Outsourcing, the Real Costs
Number of WorkersDevOps Team
-Project Manager (Industry Expert)
-Senior Full-stack Developer
-Dedicated Full-stack Developer
-1 – 2 interns
1 person1 person with a supervisor
QualityExcellent. All work done in-house in the U.S.Poor to ExcellentPoor to Average. All work done overseas.
Quality of work is rarely on par with the United States.
Extra Costs-none-
  • FICA Social Security 6.2%
  • FICA Medicare 1.45%
  • Unemployment insurance FUTA 6% of first $7,000
  • Unemployment insurance SUTA 2.7%-3.4%
  • Workers’ Comp $0.12 for each $100 of wages
  • Health insurance ($5,000/12,000)
  • Dental ($240/650)
  • Life insurance ($150 on $50,000)
  • Long term disability insurance
  • 401(k) (2.5% of salary)
  • Investment in a learning curve definitely eats into projected savings.
  • Poor quality leads to repairs or starting over.
  • Losses due to language barriers, being thousands
    of miles away, different time zones, relying mostly
    on email and IM, voice and video calls.
  • Time: Software development is a highly
    involved social process, with people sharing
    complex ideas and abstract concepts.
  • Extra management costs you’ll expend communicating
    with and monitoring the performance of your supplier.
  • Overall risk of project failure.

DevOps is a set of practices that combines software development (Dev) and IT operations (Ops).