The True Costs of Employing A Remote Development Team
Compared to your own inhouse team in the Netherlands.
When you calculate the actual effective hours you can save up to 22% on development costs.
In today's rapidly evolving digital landscape, tech-businesses are constantly exploring innovative ways to build and maintain robust development teams. This whitepaper delves into the complex dynamics of remote team management and how it compares to hiring an in-house team in the Netherlands. You will uncover a comprehensive analysis of the financial, operational, and strategic implications of embracing a remote workforce, highlighting the potential advantages and challenges that lie ahead.
The scope of this whitepaper covers remote development teams located in Eastern Europe, as well as in-house teams located within the Netherlands. While the primary focus is on the Netherlands, many of the insights and findings presented here may also apply to other countries and regions with similar labour markets and business environments.
Chapter 1 Cost Analysis
In recent years, the digital landscape has undergone a significant transformation, fuelled by the Covid pandemic, technological advancements and an increasingly interconnected global economy. As businesses strive to stay agile and competitive, many have turned to remote work models as a means of tapping into diverse talent pools and reducing operational costs. For a good analysis we will first break down the costs in direct and indirect costs and the risks associated with hiring.
The biggest component of the direct costs is of course the monthly salary of the developer. For this comparison we will review the average salaries for those roles in The Netherlands, Poland, Ukraine and Romania.
The biggest component of the direct costs is of course the monthly salary of the developer. For this comparison we will review the average salaries for those roles in The Netherlands, Poland, Ukraine and Romania.
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| The Netherlands | Poland | Ukraine | Romania | ||
|---|---|---|---|---|---|
| Medior React Developer | € 4250 | € 3500 (16k PLN) | € 2550 ($ 2800) | € 3000 (14k RON) | |
| Senior Python Developer | € 6075 | € 4500 (20k PLN) | € 3820 ($ 4200) | € 4100 (21k RON) | |
| Senior Fullstack Developer | € 5600 | € 5100 (23k PLN) | € 4185 ($ 4600) | € 4500 (22k RON) |
* These averages are the weighted averages over 2022 of various sources like: Indeed.com, Glassdoor, Stepstone, Zarobki.it, Kruschecompany.com, djinni.com, IT-corner partners and our own staff data from Amsterdam Standard and Saasmore.
But gross salaries are not equal to the total costs of employment.
These figures reveal that salaries for development roles are generally higher in the Netherlands compared to Poland, Ukraine, and Romania. Employing remote development teams in these countries could lead to significant cost savings in terms of salaries.When we zoom out, employment costs also include recruitment and onboarding costs which are on average 16% of a candidates yearly salary.
Perks and benefits also count as employment costs, including pensions, travel costs, holiday money and insurances (incl. ZVW Premium). Finally utilities and rent is also a factor that is excluded from hiring remote teams, when you augment your teams.
Amsterdam Standard charges only effective hours.
Chapter 2 Indirect Costs
The next chapter dives into the details of indirect costs that affect the ultimate cost of employment. We’ll also cover additional strategic considerations and compare our effective hours against inhouse hours.
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