The Truth About Outsourcing Rates


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The Truth About Outsourcing Rates

It’s easy to just dive into the rabbit hole of outsourcing because here’s what most think they’ll get: affordable service for lower pay.

True enough, local rates in-country can be too much for budding businesses and start-ups to handle. For example, in the US, the minimum wage is about $7.25 per hour. Therefore, a working employee earns about $290 per day, which can leave a dent on any budget.

This makes outsourcing extremely attractive for many businesses because you can actually pay 50% or even less for the same level of occupational competency.

You might say it feels like a scam. In fact, some believe it’s impossible they can pay less to gain the same or even better employees for their businesses. Here are a few reasons how it is possible.

Factors That Affect Your Talent’s Rate

Local Economy

In the US, earning $50,000 is vital and $250 a day isn’t enough. US living costs can be quite high especially in expensive cities. This means you will be paying 50% more to a New York veteran employee.

What if you had an employee living in a country that costs only $90 a day to live comfortably? In addition, what if said employee is happy to work at home and take care of his or her own healthcare and local taxes? This sounds like a dream come true.

Outsourcing actually makes this possible for both sides. Many professionals in countries with lower costs of living than the US and other Western countries find it better to work as an offshore employee. It is for this reason outsourcing becomes additionally affordable too.

Education and Experience

True enough, the level of education between local and offshore schools is difficult to measure. In fact, it is highly-likely both schools and universities use the same online and offline resources to teach students.

However, most offshore students do not have to contend with student loans for college-degree holders in the US. Additionally, their local job opportunities pay inadequately despite the valid and challenging work experience it provides them.

Indeed, an outsourcer who has a college degree and qualified work experience relevant to your business will cost a bit more than the average employee. However, this doesn’t mean they will earn your local minimum wage.

The best way we determine an outsourcer’s professional costs is to look for the actual figures they can earn in their country. In our estimates, this is likely lower than 50% the earnings of a local employee with the same education and experience as they have — which gives your business better savings and productivity with an outsourcer.

Outsourcing Demand for Their Expertise

Aside from the local economy, education, and work experience, outsourcing talent fees rise if similar businesses such as yours have a huge demand for their talents. Their fees rise when there is a shortage of employees with qualified education and experience in your field.

However, thanks to most third-party platforms who offer training to qualified candidates for virtual assistance and outsourcing tasks, they fulfill the high demand and stabilize the professional fees. In addition, the third-party platform’s training saves you time and resources in “holding hands” with your talent when performing business-related tasks.

Affordable Employees ≠ Bad Workmanship

The iron triangle always states that if you pay cheap, you get a poor result. However, if you consider local economies, educational and experiential aptitude, and other factors that contribute to affordable and dependable talents, you’d definitely say otherwise!

If you still feel confused as to how it’s possible to reduce outsourcing rates while having dependable and degree-graduate employee work, you can contact or call us to know more about how Outsource to Success can find the perfect candidate for you at the most affordable rate possible.



Learn the step by step process to successfully outsourcing and hiring freelancers from overseas.



Amy King

Amy is the founder of Outsource To Success. She aims to provide digital agencies and creative consultants the tools they need to help scale their business, successfully hire a remote team and support a positive team culture.

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