Outsourcing is often considered a cost-effective solution to reduce operational expenses, but how much money does outsourcing save?
And how much exactly can you save by hiring global talent?
To give you a better idea, we’ve compiled a comprehensive list comparing the annual salaries of U.S.-based employees in various roles with those of professionals in countries that are major outsourcing hubs.
This will help you understand the potential savings when outsourcing to these countries.
One thing to keep in mind: Outsourcing firms may charge slightly higher rates due to the costs of running a business and making a profit.
However, even with those added costs, you can still expect to save 50% to 80% by outsourcing, especially when compared to hiring directly in the U.S..
And while outsourcing firms might charge a premium, they offer the added benefit of ensuring high-quality work, which can be a valuable trade-off.
Here’s an annual salary comparison by role to show you how much you can save by outsourcing globally.
| Country | Software Developer | Customer Support Rep | Digital Marketer | AI/ML Engineer | IT Support Specialist | Cybersecurity Analyst |
|---|---|---|---|---|---|---|
| USA | $100,000 | $45,000 | $70,000 | $160,000 | $70,000 | $125,000 |
| Philippines | $10,000 | $4,500 | $8,000 | $25,000 | $10,000 | $18,000 |
| Bangladesh | $14,000 | $5,000 | $8,000 | $22,000 | $9,500 | $17,000 |
| Pakistan | $14,000 | $5,000 | $8,500 | $23,000 | $9,500 | $17,500 |
| India | $15,000 | $5,500 | $9,000 | $24,000 | $10,000 | $18,500 |
| Vietnam | $16,000 | $6,000 | $9,000 | $23,000 | $9,800 | $18,000 |
| Egypt | $18,000 | $6,500 | $10,000 | $22,000 | $9,000 | $17,000 |
| South Africa | $19,000 | $6,500 | $10,000 | $24,000 | $9,500 | $18,500 |
| Ukraine | $20,000 | $6,500 | $10,000 | $26,000 | $10,000 | $19,000 |
| Brazil | $22,000 | $6,000 | $11,000 | $27,000 | $10,500 | $20,000 |
| Mexico | $22,000 | $7,000 | $12,000 | $28,000 | $11,000 | $21,000 |
| Romania | $23,000 | $7,200 | $11,500 | $29,000 | $12,000 | $22,000 |
| Poland | $25,000 | $7,500 | $13,000 | $31,000 | $13,000 | $23,000 |
It’s obvious that the Philippines, Pakistan, and Bangladesh offer some of the most affordable labor, largely due to state-recommended annual wages. With these competitive salaries, workers can enjoy a good standard of living, which means you can access highly skilled talent while saving up to 80% on costs.
If you’re looking to offshore small tasks, explore the offshore hourly rates by country, curated by BP Outsource.
Now, let’s see how much exactly you are saving by accessing this global talent.
Here is how much you can potentially save if you hire global talent for the business tasks:
| Country | Software Dev | Customer Support | Digital Marketing | AI/ML Engineer | IT Support | Cybersecurity |
|---|---|---|---|---|---|---|
| Philippines | $90,000 | $40,500 | $62,000 | $135,000 | $60,000 | $107,000 |
| Bangladesh | $86,000 | $40,000 | $62,000 | $138,000 | $60,500 | $108,000 |
| Pakistan | $86,000 | $40,000 | $61,500 | $137,000 | $60,500 | $107,500 |
| India | $85,000 | $39,500 | $61,000 | $136,000 | $60,000 | $106,500 |
| Vietnam | $84,000 | $39,000 | $61,000 | $137,000 | $60,200 | $107,000 |
| Egypt | $82,000 | $38,500 | $60,000 | $138,000 | $61,000 | $108,000 |
| South Africa | $81,000 | $38,500 | $60,000 | $136,000 | $60,500 | $106,500 |
| Ukraine | $80,000 | $38,500 | $60,000 | $134,000 | $60,000 | $106,000 |
| Brazil | $78,000 | $39,000 | $59,000 | $133,000 | $59,500 | $105,000 |
| Mexico | $78,000 | $38,000 | $58,000 | $132,000 | $59,000 | $104,000 |
| Romania | $77,000 | $37,800 | $58,500 | $131,000 | $58,000 | $103,000 |
| Poland | $75,000 | $37,500 | $57,000 | $129,000 | $57,000 | $102,000 |
How much money do companies save by outsourcing?
Companies can save 30% to 70%, depending on the country and the role. For example, outsourcing a Software Developer from Pakistan (where salaries are about $20,000 and highly talented developers) to the U.S. (where salaries can exceed $120,000) can result in savings of up to 85%.
What country has the cheapest developers?
Philippines and Pakistan offer the most affordable developers, with salaries for Software Developers around $10,000-$20,000 annually. This is much lower than the U.S., where salaries for the same role can exceed $120,000.
How much can businesses save by outsourcing IT support overseas?
Outsourcing IT support to countries like Pakistan, Bangladesh, and the Philippines can save businesses 50% to 80% of their in-house costs. For example, an IT support role in the U.S. may cost $60,000, while in Pakistan, businesses can hire IT professionals for just $12,000, leading to savings of about 80%.
Which country is the best for outsourcing marketing?
Pakistan and India are excellent choices for outsourcing digital marketing. A Digital Marketing professional in the U.S. may earn around $65,000, whereas in Pakistan, the same role can be outsourced for about $20,000 to $25,000, offering savings of 50% to 60%. The best part is that you can expect highly talented digital marketers at these rates.
Which country is best to outsource AI/ML?
Pakistan is a competitive outsourcing destination for AI/ML roles, with salaries between $25,000 and $40,000. This is much lower than the U.S., where AI/ML engineers can earn upwards of $120,000. Pakistan offers high-quality talent at a fraction of the cost.
How much do U.S. companies save by outsourcing cybersecurity?
U.S. companies can save 40% to 60% by outsourcing Cybersecurity roles to countries like Pakistan, Egypt, Ukraine, and Poland. While a Cybersecurity Analyst in the U.S. earns around $120,000, in these countries, the top talent of this role costs about $20,000 to $40,000, providing businesses with substantial savings.
Which country has the best call centers?
The Philippines and Pakistan are great destinations for outsourcing call centers, offering highly skilled professionals at competitive rates. Call center agents in the U.S. may earn $40,000, while in Pakistan and the Philippines, businesses can find agents for around $8,000 to $12,000, offering savings of up to 70%.
Which country is a global leader in IT outsourcing?
Pakistan is emerging as a competitive leader in IT outsourcing, especially in roles like Software Development and Cybersecurity. With salaries as low as $20,000, companies can access highly skilled professionals at a fraction of the cost compared to the U.S. (where developers earn over $120,000).
Which countries provide the best cost-to-skill ratio for outsourcing roles like AI/ML or software development?
Pakistan offers one of the best cost-to-skill ratios for Software Development and AI/ML roles. You can find the best outsourcing companies, like Systems Ltd. and Netsol, in Pakistan. An AI/ML engineers in Pakistan earn $25,000 to $40,000, while their counterparts in the U.S. make upwards of $120,000. This provides excellent value for businesses looking for cost-effective outsourcing.