Cost Comparison

Cost Savings Comparison: Accounting Process

Outsourcing (Offshoring) provides significant cost savings compared to existing onshore operations

All figures in USD

Bookkeeper/Jr. Accountant US. Employee India Cost
Annual Salary 36000 18000
Payroll Taxes (8%) 2880
Overhead Costs (10%) 3600
Total Cost 42480 18000
Senior Accountant US. Employee India Cost
Annual Salary 50000 25200
Payroll Taxes (8%) 4000
Overhead Costs (10%) 5000
Total Cost 59000 25200
Financial Analyst US. Employee India Cost
Annual Salary 60000 31200
Payroll Taxes (8%) 4800
Overhead Costs (10%) 6000
Total Cost 70800 31200

Note

  1. Employee benefit costs in US not included in the comparison
  2. Overhead cost includes cost of leasing computer hardware and maintenance related, software like accounting package licenses, training, floor space and electricity among others
  3. Offshore cost are only estimates; includes wages, infrastructure, training and technology cost
  4. US Salary figures are average figures