Comparison · Checked 2026-08-25

    Outsourcing vs hiring directly

    Hiring directly is cheaper per person once you exclude the value of management, HR and retention overhead you take on. Outsourcing is cheaper on total effort — no local entity, no local HR, no attrition backfilling. The right model depends less on rate per seat than on how much of the operational lift you want to keep.

    Option A

    Outsourcing

    CareerBuddy recruits, employs, and operationally manages the team. You own the roadmap.

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    Option B

    Hiring directly (in-house)

    You recruit, employ (through your entity or EOR) and manage the team end-to-end.

    Compared, criterion by criterion

    How they line up

    DimensionOutsourcingHiring directly (in-house)
    RecruitmentIncluded in seat costYou run it, or pay per placement
    Employment layerCareerBuddyYou (entity or EOR)
    Retention / backfillingCareerBuddy backfills within seat costYou bear attrition and backfill cost
    Total cost (senior engineer, Nigeria)$6,500–$9,500/mo per seat, all-in$4,000–$6,000/mo salary + management + benefits (~$1,500) + attrition load
    Management bandwidth neededProduct / delivery onlyProduct + local management
    Who each option fits

    Pick the one that matches your situation

    Outsourcing fits when

    • You want capacity without the local employment / HR overhead
    • You want a single accountable partner if a seat needs to be replaced
    • You're testing a function before committing to a permanent structure

    Hiring directly (in-house) fits when

    • The function is core to your product and worth building deep expertise around
    • You have (or want to build) local management capacity
    • You want maximum flexibility in seat definition and compensation