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Offshore, in-house or large vendor: how your delivery model changes an IT budget

Two teams can build the same app and quote very different numbers. The work is the same, but who does it, and how experienced they are, is not.

The ScopeFlow selectors for project type, delivery model, currency and scope definition
In ScopeFlow, the delivery model scales the benchmark for your project type.

One project, six models

ScopeFlow starts from a typical cost per module for your project type and scales it by the delivery model. For a 12-module customer-facing web app with a team of six, the suggested budget changes like this:

Delivery modelBaselineSuggested rangeMidpoint
Offshore or nearshore outsourced0.6×S$36,000–S$72,000S$54,000
In-house, mostly junior0.8×S$48,000–S$96,000S$72,000
In-house, mixed seniority1.0×S$60,000–S$120,000S$90,000
In-house, senior-heavy1.3×S$78,000–S$156,000S$117,000
Boutique consultancy1.6×S$96,000–S$192,000S$144,000
Enterprise or large vendor2.3×S$138,000–S$276,000S$207,000

A lower baseline is not a promise of a cheaper outcome. Coordination, time zones, quality and rework are for you to weigh. What the table shows is that you should always choose the model you will really use, not the cheapest one.

Team size sets a floor

ScopeFlow also applies a minimum budget that rises with team size, before the delivery model is applied: S$8,000 for fewer than three people, S$20,000 for three to five, S$50,000 for six to eleven, and more beyond that. So a small project with a team of six is still suggested at S$50,000–S$90,000, because a team of that size costs a lot to keep busy. If your scope is small, try a smaller team.

These are broad, indicative benchmarks and not a quotation. Test your own setup in the free ScopeFlow calculator, and see how to estimate an IT project budget for the full method.

Free to use, no sign-up needed: LeadFlow · RateFlow · QuoteFlow · ScopeFlow

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