Hiring PHP Developers In-House vs Hiring PHP Developers Offshore

Posted by Antonu on July 16, 2018
Hiring Offshore PHP Developers

Hiring the right employee can be very frustrating and rewarding at the same time. The advent of the internet has led to the emergence of some really viable hiring models including remote workers or offshore developers. However, finding the perfect employee is still not a cakewalk even though the pool of PHP developers is growing very fast. Top companies grab the best talents, leaving just a few for other companies to hire.

For most organizations in the US and Europe, hiring full-time PHP developers can be extremely expensive. Conversely, for these companies, hiring remote PHP developers can be quite cost-efficient and other costs like those pertaining to workstations and insurance will be almost none. It is also important to note that hiring PHP developers offshore comes with its own set of problems. In the battle of choosing an ideal PHP developer in-house or offshore, let us discuss what you can eventually expect and what can be the best option for you between the two.

Choosing Between the Two Options

Let us do a quick comparison between hiring full-time and remote PHP developers in terms of cost:

1. A full-time PHP developer in the US would cost $85,000 per year on an average.

2. An offshore PHP developer can be hired for about $15 per hour.

These two different types of employees will function in diverse ways. For instance, a full-time PHP developer will merge with their company’s environment or culture, learn the business well with time, and gradually become a vital resource. On the other hand, an offshore PHP developer will devote their time and energy in quickly learning about a project’s requirements in order to work efficiently. They would know very little about how the organization that hires them works.

Full-Time Hiring – A Huge Investment

A US-based PHP developer would have at least four years of professional training, which means that it would be quite expensive to recruit and train a native expert. There would be big expenses during the hiring and training of these PHP developers, much before they actually do any concrete work. However, this initial investment will yield benefits in the long run. Also, note that there is no guarantee that a newly hired full-time PHP developer will be a great resource. The recruiter can only hope for the best by taking into account the educational background and experience or the portfolio of projects completed in the past by the new hire.

Offshore developers on the other hand can complete a project quickly and that too with minimum training. A complete job description is all they would require to see a project through.

Benefits A Full-Time Hire Expects

When you hire full-time employees, you will surely have to pay for their benefits including health insurance, life insurance, dental care etc.

Taxes:

Depending on your location and country, taxes would vary. Hiring a full-time PHP developer in the US would mean that you will have to shell out around $24,000 in just taxes every year. If you hire an offshore developer from countries like India, you won’t have to pay any taxes.

Office Space:

Hiring an in-house PHP developer means that you have to provide the required equipment to work such as computer and workstation. This is expensive and you will also have to rent an office space, paying at least $500 per month.

In case of offshore PHP developers, they are fully equipped with everything that is required for working for a client. Thus, you will be saving a lot if you hire developers remotely.

Vacation & Paid Leaves:

You will have to provide about three weeks paid leaves per year to your full-time hire. Your offshore developers  on the other hand would be paid only for the number of hours they work.

Comparing the Numbers

Now, assuming that you are paying $15 per hour to your offshore employee, you will end up paying about $30,000 for 2000 hours of work in a year. Compare this with your full-time employee’s expenses and the total yearly cost would be approximately $135,000, $85,000 for salary and $50,000 as training and recruitment charges. The numbers clearly indicate which option you must opt for. By now, you may have probably decided what would be ideal for your business and your pocket.

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