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 | 40000 | 19000 |
| Payroll Taxes (8%) | 3200 | |
| Overhead Costs (10%) | 4000 | |
| Total Cost | 47200 | 18000 |
| Senior Accountant | US. Employee | India Cost |
| Annual Salary | 60000 | 29500 |
| Payroll Taxes (8%) | 4800 | |
| Overhead Costs (10%) | 6000 | |
| Total Cost | 70800 | 29500 |
| Financial Analyst | US. Employee | India Cost |
| Annual Salary | 72000 | 37000 |
| Payroll Taxes (8%) | 5760 | |
| Overhead Costs (10%) | 7200 | |
| Total Cost | 84960 | 37000 |
Note:
- Employee benefit costs in US not included in the comparison.
- Overhead cost includes cost of leasing computer hardware and maintenance related, software like accounting package licenses, training, floor space and electricity among others.
- Offshore cost are only estimates; includes wages, infrastructure, training and technology cost.
- US Salary figures are average figures.