The Benefits of Outsourcing Your Software Development
One of the main advantages to outsourcing software development has always been the cost savings, although you do get what you pay for. We offer software developers at the same or a lesser cost than hiring employees, while guaranteeing the quality of output, which is priceless. We have created a cost comparison of hiring and retaining a junior software developer as an employee in the Calgary market, versus using our service. All figures are conservative estimates. |
| The Cost of Employees | One Time | Monthly | Totals |
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| Advertising & Recruiting: Based on two one week ads in the Calgary Herald Classifieds and one with Workopolis |
$ 2,000 |
N/A |
$ 2,000 |
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| Interviewing & Resume Review: HR: Salary of 40k/year 7 hours reviewing resumes, booking appts. Management: Salary of 100k/year 7 hours interviewing, analysis |
$ 140 $ 365 |
N/A |
$ 505 |
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| Infrastructure: 25 sq ft office @ $21 sq ft Phone Line + Equipment Rental + Internet Leased Laptop Software Licensing Fees Office Supplies |
N/A | $ 525 $ 65 $ 90 $ 100 $ 25 |
$ 9,660 |
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| Labor Costs: - Junior Developer: 3 years experience: Salary of $45k/year - Team Lead: Salary of $80k/year divided by 5 developers=cost of supervising one developer - Sr. Executive Developer: Salary of $120k/year divided by 25 developers & team leads=cost of supervising one developer |
N/A | $ 3,750 $ 1,333 $ 400 |
$65,796 |
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| Other Expenses: CPP + EI Remittances for Junior Developer Blue Cross Health Monthly Premium |
N/A | $ 300 $ 50 |
$ 4,200 |
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| Totals | $ 2,505 One Time Costs |
$ 6,638 Monthly Costs |
$82,161 Yearly Cost |
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| Total yearly cost divided by 1920 hours/year (Based on 160 working hours/month) |
$42.79/hr. The cost of hiring a junior developer |
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| Small Planet Software | One Time | Monthly | Total |
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| Set Up Fees | 0 | 0 | 0 |
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| Infrastructure Fees | 0 | 0 | 0 |
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| Other Expenses | 0 | 0 | 0 |
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| Team Lead + Sr. Executive Developer | 0 | Included | 0 |
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| Junior Developer with 3 years experience Full time, one year contract. |
$67,000 | $ 5,600 | $67,200 |
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| Totals | $67,000 One Time Costs |
$ 5,600 Monthly Costs |
$67,200 Yearly Cost |
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Total yearly cost divided by 1920 hours/year |
$35.00/hr The cost of hiring a junior developer through SPSI |
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| In addition to providing significant cost savings, Small Planet Software International will save you the headaches of employee turnaround, and offer the peace of mind of guaranteed quality. |
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| Begin experiencing the benefits of outsourcing your software development projects today. Call (403) 668-4537 to book a consultation, or if you prefer submit your RFP. |  |
