Offshore vs Local Hire: An Honest Cost Comparison
Market Intelligence · 7 min read · Updated 2026-07
Compared like-for-like, a fully-managed offshore hire usually costs 60–70% less than a local employee once you load the local salary with taxes, benefits, recruitment, equipment, software and overhead. Offshore wins for ongoing roles that don't require physical presence; keep onshore what genuinely needs to be local.
Count the true cost of local
Salary is only about two-thirds of what a local employee actually costs. Add employer taxes/superannuation, payroll tax, workers' comp, recruitment, equipment, software seats, floor space and management overhead and the real figure lands around 1.4–1.7x base salary.
What offshore does and doesn't change
Offshore employment doesn't remove those costs — it consolidates them into one predictable monthly rate, which is why the comparison is cleaner than most people expect. The strategic question isn't 'can we hire cheaper', it's 'which roles genuinely require local presence, and which have we simply never questioned'.
Key takeaways
- Fully-loaded local cost ≈ 1.4–1.7x salary.
- Offshore consolidates those costs into one monthly rate.
- Net saving on comparable roles is typically 60–70%.
- Keep onshore only what truly needs physical presence.
Common questions
Does cheaper mean lower quality?
No. The Philippines has a deep, English-fluent professional workforce. The cost gap reflects local cost of living, not capability.
Your next hire doesn't have to cost six figures.
Book a 30-minute strategy session. You'll leave with a costed workforce plan, indicative salaries and a realistic timeline — whether you work with us or not.