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Offshore Hiring Cost Estimator

Model the true all-in cost of building an offshore engineering team — base salary, employer statutory contributions, service fees, equipment, tools and management overhead — across four engagement models side by side.

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Salary + statutory rate

Engineers in the team

Months

Total engagement cost

Engagement model comparison

Base salary Employer statutory Service fee / entity Equipment Tools Management + risk

Second Talent — managed

$0 total

Traditional EOR (Deel / Oyster-style)

$0 total

Direct contractor agreements

$0 total

Your own local entity

$0 total

Per-engineer monthly breakdown

Cost component Second Talent Traditional EOR Contractor Own entity
Base salary $0 $0 $0 $0
Employer statutory $0 $0 $0 $0
Service fee / entity overhead $0 $0 $0 $0
Remote tools $0 $0 $0 $0
Management overhead $0 $0 $0 $0
All-in per-engineer monthly $0 $0 $0 $0

All-in monthly

$0

full team via Second Talent

Engagement total

$0

over selected duration

3-year TCO

$0

total cost of ownership

Saved vs US in-house

$0

at $14,500/mo US senior rate

Agent-ready talent at $103K a year less.

Vetted on agentic workflows and matched to your stack before you see a résumé.

60 %

Typical cost reduction vs US fully-loaded salaries

9 mkts

Asia-Pacific markets covered by Second Talent

25 k USD

Average setup cost for a local entity (excluding maintenance)

36 mo

Payback horizon where entity economics beat managed EOR

Four engagement models, very different economics

Each model above trades off setup cost, monthly burn, and legal exposure differently. The estimator shows which one wins for your team size and timeline.

01

Second Talent — managed

Full-service: sourcing, vetting, EOR, payroll, compliance, and performance management under one flat per-seat fee. Zero setup cost, zero minimum engagement, replacement on our dime if the fit is wrong. Best for 1–50 engineers across any of our nine markets.

02

Traditional EOR (Deel / Oyster-style)

You source and vet the engineer yourself, then hire them through a generic EOR platform. Monthly fees typically run 60–80% higher than Second Talent's, and you own all the sourcing and performance risk. Good fit if you already know exactly who to hire.

03

Direct contractor agreements

Fastest to set up, but contractors demand ~15% higher rates to self-cover benefits and taxes, and you carry misclassification risk in most jurisdictions. Works for short-term work; dangerous as a long-term team structure.

04

Your own local entity

Registering a local subsidiary eliminates the per-seat EOR fee but costs $15k–40k upfront and $2.5k–4k/month in accounting, tax, and compliance overhead. Makes sense at 10+ engineers in one country over 3+ years — not before.

How to read this estimator

Read the comparison bars first, then the per-engineer table, then the headline numbers — in that order.

1

Set the team profile

Pick the country, team size, and seniority mix. Statutory employer contributions vary from 6.5% in Hong Kong to 31% in China — the estimator pulls the right rate automatically.

2

Pick the engagement length

The engagement length spreads one-time costs (entity setup, equipment) across the months. Short engagements make entity setup look expensive; long ones make it pay back.

3

Compare all four models

The stacked bars show where each model's money actually goes. Own-entity teams often look cheapest per-engineer-per-month but lose on setup cost for small teams or short engagements.

4

Check the per-engineer table

The table breaks down the monthly cost into base salary, employer statutory, service fee, tools, and management overhead. Every row is a line item you will eventually see on an invoice somewhere.

5

Use the headline numbers

All-in monthly, full engagement total, 3-year TCO, and savings vs a US in-house team at $14,500/month fully loaded. These are the numbers to bring to your finance partner.

Offshore hiring estimator FAQ

How accurate are the salary bands?
The mid-point of each country's band reflects Second Talent's 2024–2025 actual placement data for senior engineers. Junior and staff-level hires are modelled with a multiplier on that midpoint. Your actual offer will vary with the specific role, stack, and candidate — treat the output as a planning estimate, not a quote.
What are "employer statutory contributions"?
Mandatory employer-paid taxes, social insurance, pension, and health contributions on top of gross salary. They are real and non-negotiable. Rates range from 6.5% in Hong Kong to 31% in China. If anyone shows you an offshore cost that ignores this line, they are underestimating by 10–30%.
When does setting up your own entity pay back?
Rough rule: 10+ engineers per country for 3+ years. The estimator makes this easy to test — set team size to 15, engagement length to 36 months, and watch the entity bar overtake the managed-EOR bar as team size grows. Below that threshold, the per-engineer cost of entity overhead is higher than an EOR fee.
Why is a "Traditional EOR" more expensive than Second Talent?
Two reasons. First, generic EORs charge flat-rate per-seat fees that are 60–80% higher than ours. Second, you still have to source and vet the engineer yourself — the EOR is only the payroll rails. Second Talent bundles sourcing, vetting, EOR, and performance management for one fee.
What is the risk with contractor agreements?
Most jurisdictions have worker-classification laws that treat long-term full-time contractors as employees for tax purposes. Misclassification penalties are severe — back taxes, social charges, and fines can exceed 2× the original salary. Contractors are fine for short, scoped work. They are not a safe long-term team structure.
Does this estimator include the cost of managing a remote team?
Yes — we add an 8% of salary line for management overhead (engineering manager time, coordination, tooling beyond the standard stack). For highly distributed teams with little time-zone overlap, 10–12% is more realistic. Adjust the seniority mix to model a more senior-led team and this overhead shrinks proportionally.

What this estimator helps you understand

Practical numbers for planning your budget.

01

All-in monthly and full-engagement cost for a remote offshore team in any of 9 Asia-Pacific markets

02

Four engagement models compared: Second Talent managed, traditional EOR, direct contractor, or your own local entity

03

Country-specific employer statutory contributions (from 6.5% in Hong Kong to 31% in China)

04

3-year total cost of ownership including entity setup, equipment, tools and management overhead

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