Most people and companies in the west, especially in the English speaking world, know about the benefits of offshore outsourcing. Still there are some exceptions. Countries like Germany, Norway, Denmark and Austria are not yet 100 % convinced about the benefits of outsourcing to India.

In this article we want to show in a funny way what could be done with the money which can be saved by the means of offshore outsourcing.

So how much can be saved using outsourcing to India?

Till a few years ago the prices for outsourcing services to India were pretty low. The reasons were a weak Rupee and low salaries in the IT sector. In the past few years though this has changed a lot. The salaries have increased strongly for qualified software developers from India, especially for people with 3 + years experience. During the same time the salaries in Europe and in the US have remained stagnant. The result is, that the gap between having an IT project done in India versus it being done in the western world has decreased immensely. Still it is possible to save up to 50 % in development costs compared to prices in the west. And who would not like to save 50 % on a product or service? Plus, you can be pretty sure today that you will get a service with the same quality, as you are getting it in the west. So let’s see what you could do with those savings.

Example Calculation:

Let’s say you have a project which would take 3 man-months to complete. Suppose the development would cost you 43 000 US Dollars to develop. In India you would be able to do it, if we consider the 50 % saving, at a cost of 21 500 US Dollars. Now you have an extra 21 500 US dollars at your disposal.

What you could do with that kind of money?

Buy a new car

Buy a new company car

You can get a nice new car with the funds you have just saved.

Go on a Trip

Go on a holiday

For 21 500 US Dollars you can have a world trip including your whole family.

Get some training


Get expert consultation services and training from leading trainers in your industry.

Build a new product

Build a new product

With the additional money you saved, you could build yet another software product which could help in increasing your foothold in the market and satisfy your clients.

Buy new electronic gadgets

Latest electronic gadgets

Always dreamt of owning that new 16 feet mega 3D screen TV? Now you are able to afford it.

Get new office Furniture

Invest in Infrastructure

You could buy new infrastructure, like the latest PC’s and office furniture to enhance your office experience.

Give to Charity

Give to charity

Spend a part or the whole amount of the money saved on charity. You will help a lot of needy people with that amount.

Any ideas what to do with the additional savings? We are happy to receive suggestions in the comments area below 🙂

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The author: Sascha Thattil is Co-Founder and CEO of YUHIRO. YUHIRO offers dedicated IT services to small and medium sized companies.

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