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In-House vs Kosovo Developers: Complete ROI Analysis for 2024

January 26, 2024
10 min read
DT

Daullja Team

Business Strategy Insights

In-House vs Kosovo Developers: Complete ROI Analysis for 2024

40-60% Cost Savings

Compared to Western European or North American developers

90%+ Satisfaction

Client satisfaction rates with Eastern European developers

6-8 Hours Overlap

Perfect time zone alignment with US East Coast

$2.3B Investment

Venture capital funding in Eastern Europe (2023)

In-House vs Kosovo Developers: The Real ROI Analysis

Every tech company faces this decision: hire in-house or go offshore? Let's run the numbers with a real scenario.

Scenario: Hiring 5 Full-Stack Developers

Company: Series A SaaS, San Francisco Need: 5 full-stack developers (1 senior, 2 mid, 2 junior) Duration: 1 year

Total Cost Breakdown

In-House US Team (San Francisco)

RoleSalaryBenefitsEquipmentRecruitmentTotal/Year
Senior$180k$54k$5k$30k$269k
Mid x2$260k$78k$10k$40k$388k
Junior x2$220k$66k$10k$30k$326k
TOTAL$660k$198k$25k$100k$983k

Additional Hidden Costs:

  • Office space: $60k/year ($12k per person)
  • Management overhead: $40k/year
  • Training/conferences: $25k/year
  • Grand Total: $1,108,000

Kosovo Team (via Daullja)

RoleRateAnnual Cost
Senior$70/hr$145,600
Mid x2$45/hr$187,200
Junior x2$30/hr$124,800
TOTAL$457,600

All-Inclusive (no hidden costs):

  • Equipment: Included
  • Benefits: Included
  • Recruitment: Included
  • Management: Included
  • Grand Total: $457,600

The Savings

Year 1 Savings: $650,400 (59% lower cost)

5-Year Savings: $3,252,000 (assumes 3% annual raises)

Productivity Comparison

Many assume remote teams are less productive. Here's the reality:

In-House Team Challenges

  • Distractions: Open office, meetings, "quick questions"
  • Commute impact: 45-90 min/day lost productivity
  • Context switching: Frequent interruptions
  • Actual coding time: 4-5 hours/day

Kosovo Remote Team

  • Focused work: Home office, async communication
  • No commute: Start working immediately
  • Fewer meetings: Written communication preferred
  • Actual coding time: 6-7 hours/day

Productivity Edge: Kosovo team often delivers 20-30% more output per hour due to fewer distractions.

When In-House Makes Sense

Choose In-House if:

  1. You're building core IP requiring extreme secrecy
  2. You need instant, in-person collaboration daily
  3. Your product requires deep domain knowledge (healthcare, finance)
  4. You have investor pressure for local team
  5. You're hiring <3 developers (overhead doesn't justify remote)

When Kosovo Team Makes Sense

Choose Kosovo if:

  1. Cost optimization is important (save 60%+)
  2. You're comfortable with remote-first workflows
  3. You need to scale quickly (hire 5+ developers)
  4. You want access to wider talent pool
  5. You can provide clear documentation/processes

Real Company Example

Before (In-House Team):

  • 8 developers in NYC
  • Annual cost: $1.8M
  • Burn rate: $150k/month
  • Runway: 12 months

After (Hybrid: 3 in-house + 8 Kosovo):

  • 3 senior engineers in-house (architecture)
  • 8 developers in Kosovo (execution)
  • Annual cost: $1.1M
  • Burn rate: $92k/month
  • Runway: 20 months
  • Bonus: Faster hiring, extended runway helped raise Series B

Risk Comparison

In-House Risks

  • High fixed costs: Can't scale down easily
  • Location-limited: Only hire from commutable area
  • Slower hiring: 3-4 month average time-to-hire
  • Market competition: Bidding wars for talent

Kosovo Team Risks (Mitigated)

  • Time zone: CET overlaps with US East Coast 4+ hours
  • Quality: Pre-vetting ensures high standards
  • Communication: English proficiency is high
  • Legal: Daullja handles compliance/contracts

The Hybrid Model (Best of Both)

Many successful companies use a hybrid approach:

Keep In-House:

  • CTO/VP Engineering
  • 1-2 senior architects
  • Product manager
  • Designer

Offshore to Kosovo:

  • 5-10 full-stack developers
  • QA engineers
  • DevOps engineers
  • Frontend specialists

Benefits:

  • Save 50-60% overall
  • Maintain strategic control
  • Scale execution quickly
  • Extend runway significantly

Break-Even Analysis

Question: At what team size does Kosovo make sense?

Answer: 3+ developers for 6+ months

Calculation:

  • Upfront cost: $5k (recruitment, setup)
  • Monthly savings: $15k per developer
  • Break-even: Month 1

Below 3 developers: In-house or freelance might be simpler Above 3 developers: Kosovo delivers clear ROI

The Decision Framework

Score Your Situation (Yes=1, No=0):

  1. ☐ Need to reduce burn rate by 30%+
  2. ☐ Hiring 3+ developers in next 6 months
  3. ☐ Comfortable with remote-first work
  4. ☐ Have clear product requirements
  5. ☐ Want to extend runway without dilution

If you scored 3+: Kosovo developers will likely deliver strong ROI

If you scored 0-2: Consider in-house or hybrid model

Bottom Line

In-house isn't "bad" and Kosovo isn't "cheap labor" - they're different models for different situations.

The math is clear: For most startups and scale-ups, Kosovo developers deliver 60% cost savings with comparable (often better) productivity. The $650k saved per year can mean:

  • 8 months extra runway
  • Faster product development
  • Lower dilution in next funding round

The real question: Can you afford NOT to explore this option?


Ready to see if Kosovo developers are right for your team? Get a custom ROI analysis based on your specific situation.

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Success Metrics That Matter
300+
companies
Active IT Companies in Kosovo
60-70%
savings
Cost Savings vs US Developers
29
years
Average Age - Young Workforce
Modern technology and innovation
Innovation & Technology

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