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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 36,000 18,000
Payroll Taxes (8%) 2,880
Overhead Costs (10%) 3,600
Total Cost 42,480 18,000
Senior Accountant US. Employee India Cost
Annual Salary 50,000 25,200
Payroll Taxes (8%) 4,000
Overhead Costs (10%) 5,000
Total Cost 59,000 25,200
Financial Analyst US. Employee India Cost
Annual Salary 60,000 31,200
Payroll Taxes (8%) 4,800
Overhead Costs (10%) 6,000
Total Cost 70,800 31,200

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