Domestic vs Offshore Hire — Total Cost of Ownership
LatAm hires ~55% of US cost. India ~35%. After EOR fees and productivity adjustment, real savings are typically 30-50% annually per role.
Deel, Remote, etc. typically $500-700/mo per hire
How the Comparison Works
Raw salary comparison overstates offshore savings. This tool adds EOR fees and productivity adjustment by region to surface real TCO delta.
1. Salary multipliers
LatAm ~55%, Eastern Europe ~50%, India ~35%, SE Asia ~40%. Based on 2024-2025 market data for equivalent seniority.
2. EOR fees
Employer of Record services add $500-700/month per hire. Includes compliance, payroll, and statutory benefits in the employee country.
3. Productivity adjustment
LatAm/EU ~95% productivity; India/SE Asia ~85%. Accounts for timezone gap, communication friction, cultural translation.
Frequently Asked Questions
Is offshore hiring legal?
Yes, with proper employment structure. Use either an Employer of Record (EOR) service like Deel, Remote, or Oyster, or contractor relationships with 1099 equivalents. Never treat offshore hires as employees without EOR — tax and labor law consequences are severe.
What does EOR actually do?
Employer of Record legally employs your offshore hire in their country. Handles local payroll, tax withholding, benefits, compliance. Typical fee $500-700/month per hire. You direct the work; EOR handles paperwork.
What regions have the best quality-to-cost ratio for engineering?
In 2024-2025, LatAm has emerged as strongest for US companies due to near-real-time timezone overlap. Eastern Europe offers excellent quality at ~50% US cost but 6-10 hour timezone gap. India lowest cost but largest timezone and communication overhead.
What is productivity adjustment and why does it matter?
Offshore hires face communication friction, timezone gaps, and cultural translation. LatAm/Eastern Europe ~95%; India/SE Asia ~85%. A $60K hire at 85% productivity effectively costs $70K in delivered output.
Can I just hire contractors directly instead of using an EOR?
Yes, but mind misclassification rules. A contractor working full-time on your product, using your equipment, following your schedule may be legally reclassified as an employee. Use EOR for full-time; contractor for clear project-based work with independence.
What hidden costs does this calculator miss?
Onboarding time (2-3x longer for offshore), manager coordination time, 15-20% early-stage turnover, travel for in-person gatherings, cultural training.
Track Team Cost Across Regions
See fully-loaded team cost by region, role, and entity — with EOR fees and timezone-overlap notes.