Building a successful business and implementing management suites like Dynamics AX often comes down to one major question: How do we get the best people for the job without breaking the bank?
As more companies expand their workforce globally, the debate between hiring in-house talent and choosing to hire dedicated remote team professionals has become a hot topic. While both models have advantages, the financial differences are hard to ignore.
In this post, we’ll break down the costs of both approaches to help you make an informed decision for your business.
Understanding the Two Models
Before diving into the numbers, let’s quickly define the two hiring models:
● In-house teams are traditional, on-site employees who work within your office environment. They’re part of your payroll, benefits system, and company culture.
● Dedicated remote teams are full-time professionals (often hired through offshore or nearshore providers) who work remotely but are fully committed to your business and projects. When you hire dedicated remote team, consider them your they’re long-term partners, not freelancers.
The True Cost of Hiring In-House
Hiring in-house might feel like the “safe” choice, but it comes with a heavy cost burden beyond just salaries.
1. Salaries and Benefits
In competitive markets like the US, UK, or Western Europe, salaries for top talent can be sky-high. Add to that:
● Health insurance
● Paid vacations and sick leave
● Retirement contributions
● Bonuses and perks
These extras can add 20%–40% more to the base salary.
2. Recruitment Expenses
The cost of hiring a full-time employee is often underestimated. Think about:
● Job ads
● Recruiter fees
● Time spent interviewing
● Onboarding and training
According to SHRM, the average cost per hire is $4,700—not counting the lost time if the new hire doesn’t work out.
3. Office Space and Equipment
Desks, computers, software licenses, utilities, and snacks add up fast. In major cities, it costs $12,000–$18,000 annually per employee to provide a workspace.
3. Turnover and Downtime
Employee turnover is costly. When someone leaves, productivity dips, hiring starts again, and projects slow down. It can take 6–9 months of salary to replace and train a new hire.
The Cost Advantages of Hiring a Dedicated Remote Team
Now, let’s look at what it costs to hire dedicated remote team professionals.
1. Lower Salaries (Without Sacrificing Quality)
By hiring from regions like Eastern Europe, South Asia, or Latin America, businesses can access top-tier talent at a fraction of the local cost. For example:
● A senior developer in the US might cost $120,000+/year
● The same skill set in Ukraine or Pakistan might cost $35,000–$50,000/year
That’s a 60–70% saving, without compromising on experience or quality.
2. Zero Overhead on Office Space
Since remote teams work from their own locations, you’re not footing the bill for office rent, electricity, or physical infrastructure. Many remote providers include all required tools and equipment in their service fees.
3. Streamlined Hiring and Onboarding
Remote staffing companies often handle:
● Sourcing
● Screening
● Onboarding
● HR and payroll compliance
This reduces the time and cost of building a capable team and removes the risk of hiring misfires.
4. Scalability Without Financial Strain
With a dedicated remote model, you can scale up or down based on your current project needs—there are no long-term contracts or layoffs. It’s a cost-flexible solution, especially for fast-growing or seasonal businesses.
Direct Cost Comparison
| Cost Element | In-House Team (US) | Dedicated Remote Team (Asia/Eastern Europe) |
| Average Salary (Developer) | $100,000–$120,000/year | $35,000–$50,000/year |
| Benefits & Overhead | $25,000–$40,000/year | Included or negligible |
| Office Space & Equipment | $12,000–$18,000/year | $0 (remote setup) |
| Recruitment & Onboarding | $5,000–$10,000 | Minimal or included |
| Total Cost per Employee | $140,000–$190,000 | $35,000–$50,000 |
Even at the higher end, choosing to hire dedicated remote team professionals can save 50%–70% per team member.
What About Hidden Costs?
Of course, cost isn’t the only factor. Some businesses worry about:
● Time zone gaps
● Language barriers
● Security risks
However, with the right partner and processes, these challenges are manageable. Many remote teams overlap working hours, use secure communication channels, and have excellent English fluency. The key is partnering with a reputable provider who vets talent and supports team integration.
Is It Right for Your Business?
If your business values flexibility, speed, and cost-efficiency, then the choice to hire dedicated remote team professionals becomes a compelling one. It’s ideal for:
● Startups on a tight budget
● Product companies with fast development cycles
● Agencies needing to scale delivery
● Enterprises expanding global operations
Some roles, like executive leadership or customer-facing sales, may still be best kept in-house due to their strategic importance or cultural alignment.
Final Thoughts
Hiring in-house will always have its place, but it’s no longer the default option. The global workforce has evolved, and so should your hiring strategy.
If you’re looking to build a high-performing team without stretching your budget, consider the smarter alternative: hire dedicated remote team professionals who offer the same quality at a significantly lower cost.
In today’s competitive landscape, cost-efficiency isn’t just a perk—it’s a necessity. And remote teams are proving that you don’t have to compromise on talent to stay within budget.
