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True Cost Calculator Updated just now

Compare the real cost of engagement options. Adjust the assumptions based on your organisation's experience.

Your Project Parameters

6 months
$ /day
$ /hour
$ /day

Hidden Cost Assumptions

Uncheck to customize, or use industry-researched defaults.

MIT Sloan: 5-12 hrs typical for offshore management

8 hrs

Gartner: 67% of offshore projects require significant rework

35%

McKinsey: 27-45% average budget/timeline overrun

25%

Deloitte: 4-12 weeks typical onboarding for offshore

6 weeks

Offshore/Junior Resource

Apparent Cost (Day Rate × Days) $59,400

Hidden Costs

Supervision overhead $23,040
Rework (35% of deliverables) $20,790
Timeline overrun risk $14,850
Knowledge transfer $5,760
Total Hidden Costs $64,440
True Cost of Engagement $123,840 +108% over apparent cost

Experienced Consultant

Engagement Cost $158,400

Hidden Costs

Supervision (1-2 hrs/week) $4,320
Rework (5-10%) $11,880
Timeline overrun (minimal) $7,920
Knowledge transfer (faster) $960
Total Hidden Costs $25,080
True Cost of Engagement $183,480
Day Rate Premium +167%
True Cost Difference +48%
Risk-Adjusted Value Pay 48% more for certainty
Show Calculation Breakdown

Offshore/Junior Working

Experienced Consultant Working

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Updated