Outsourced QA vs in-house cost

How the cost of an outsourced QA engineer compares with an in-house hire: what a vendor rate includes, what the employee total includes, and one dataset example.

Figures from dataset v1.0, computed . Updated .

Outsourced QA is costed as a vendor hourly rate times billable hours; in-house QA is costed as the fully loaded employee total. The two figures cover different things. A vendor rate includes the vendor's salary costs, overhead and margin, and the employer adds no recruiting, ramp or equipment; the employee total includes all the employer's own costs for one person.

How the outsourced figure is built

The published formula computes the outsourced cost as:

  • the aggregated vendor hourly rate for the region and role;
  • times billable hours per month, taken from sources;
  • times 12.

Vendor rates are aggregated from at least three vendor price lists, or one survey and two vendor price lists. No vendor is named on this site. The formula adds no recruiting, no ramp and no equipment, because the vendor carries them. A typical minimum engagement is shown where sources state one.

How the in-house figure is built

The in-house figure is the employee model: base salary, employer contributions, mandatory benefits, voluntary benefits, equipment and tooling, and recruiting and ramp each spread over 2.5 years. See the employee model.

Worked example

Worked example: a mid-level manual QA engineer in the United States. Employed, the median total is USD 107,256. Bought from a QA vendor at the North America rate of USD 70 to USD 90 an hour, 1,920 billed hours a year at the median rate of USD 80 come to USD 153,600.

Mid-level manual QA engineer, United States, median annual cost by model, USD, confidence grade Confidence B.
ModelAnnualNot included
EmployeeUSD 107,256voluntary benefits (not estimated); office space; management time; and bonuses and equity
Employer of recordUSD 115,044voluntary benefits; office space; management time; and bonuses and equity
Contractornot publishedNot published: no contractor hourly rate for this role in the North America region meets the two-source rule. What is not published.
OutsourcedUSD 153,600recruiting, onboarding ramp, equipment and your own management time

Confidence grade (A, B or C, from the number and agreement of the sources): mid-level manual QA engineer in the United StatesConfidence B.

Sources: in the source list on this page, and next to each figure on the linked breakdown page.

Reading the two totals side by side

The totals are for one person-year of QA work. Several differences sit outside the numbers:

  • Hours. The employee total pays for a year that includes leave and holidays. The outsourced total pays for billable hours only.
  • Region. Vendor rates are aggregated by region, not by country, so the outsourced figure for a country reflects its region's rate.
  • Minimum engagement. A vendor may require a minimum team size or contract length. The figure on this site is per person and does not apply a minimum.
  • Management. The employer of an in-house tester manages that person. The cost of a vendor's own management layer is inside the vendor rate. The employer's time spent managing either arrangement is not estimated.
  • One-off costs. Recruiting and ramp appear in the employee first-year figure. The outsourced figure has no first-year difference.

What the dataset does not estimate

The dataset does not estimate knowledge transfer at the start or end of an engagement, contract negotiation, vendor switching costs, or the effect on product quality of either arrangement. Those items depend on the engagement and are not sourced.

Where to see the figures for other combinations

The compare page shows employee, contractor, EOR and outsourced totals side by side for published combinations. The outsourced model page lists the outsourced totals by country. Vendor rate sources are counted, not named, on the sources page, and each outsourced figure footnotes them on its breakdown page.

Related pages

Sources

Sources of the figures in the examples and tables above, with the dates they were accessed and verified. Each linked breakdown page also footnotes them next to each figure.

  1. Payscale. Early-Career Quality Assurance (QA) Engineer Salary in 2026 | PayScale
    Salary data site · data 2026-07-13 · accessed 8 October 2026 · verified 8 October 2026 · supports base salary, manual QA engineer, mid-level, United States
  2. Built In. 2026 QA Engineer Salary in US | Built In
    Salary data site · data 2026 · accessed 8 October 2026 · verified 8 October 2026 · supports base salary, manual QA engineer, junior to senior, United States
  3. Internal Revenue Service. Topic no. 751, Social Security and Medicare withholding rates
    Tax or social security authority · data 2026 · accessed 8 October 2026 · verified 8 October 2026
  4. PwC Worldwide Tax Summaries. United States - Corporate - Other taxes
    Secondary legal summary · data 2026 · accessed 8 October 2026 · verified 8 October 2026
  5. Internal Revenue Service. Topic no. 759, Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return
    Tax or social security authority · data 2026 · accessed 8 October 2026 · verified 8 October 2026
  6. U.S. Department of Labor, Employment and Training Administration. UI Data Summary, 2nd Quarter 2026 Summary Tables
    Tax or social security authority · data 2025-12 · accessed 8 October 2026 · verified 11 October 2026
  7. Oregon Department of Consumer and Business Services. Oregon Workers' Compensation Premium Rate Ranking (rates in effect January 1, 2024)
    Tax or social security authority · data 2024-01 · accessed 8 October 2026 · verified 8 October 2026
  8. U.S. Department of Labor. Vacation Leave
    Tax or social security authority · data 2026 · accessed 8 October 2026 · verified 8 October 2026
  9. Apple. Buy MacBook Air
    List price · data 2026-10-08 · accessed 8 October 2026 · verified 8 October 2026
  10. Apple. Buy MacBook Pro
    List price · data 2026-10-08 · accessed 8 October 2026 · verified 8 October 2026
  11. Dell. Dell laptops (business line, formerly Latitude)
    List price · data 2026-10-08 · accessed 8 October 2026 · verified 8 October 2026
  12. Testing tool list price (vendor not named)
    List price · data 2026-10-08 · accessed 8 October 2026 · verified 8 October 2026
  13. Testing tool list price (vendor not named)
    List price · data 2026-10-08 · accessed 8 October 2026 · verified 8 October 2026
  14. Atlassian. Jira pricing: Free, Standard, Premium, Enterprise | Atlassian
    List price · data 2026-10-08 · accessed 8 October 2026 · verified 8 October 2026
  15. Linear. Linear pricing
    List price · data 2026-10-08 · accessed 8 October 2026 · verified 8 October 2026
  16. Manatal. Recruitment fees (agency fee guide)
    Recruiter salary guide · data 2026-08-14 · accessed 8 October 2026 · verified 8 October 2026
  17. Apollo Technical. What is a placement fee for engineering hiring
    Recruiter salary guide · data 2026-09-23 · accessed 8 October 2026 · verified 8 October 2026
  18. HeroHunt.ai. True Cost to Hire an AI Engineer in 2026
    Recruiter salary guide · data 2026-09-25 · accessed 8 October 2026 · verified 8 October 2026
  19. Deel. Deel pricing
    EOR country guide · data 2026-10-08 · accessed 8 October 2026 · verified 8 October 2026
  20. Remote. Remote pricing
    EOR country guide · data 2026-10-08 · accessed 8 October 2026 · verified 8 October 2026
  21. Oyster HR. Oyster pricing
    EOR country guide · data 2026-10-08 · accessed 8 October 2026 · verified 8 October 2026
  22. Multiplier. Multiplier pricing
    EOR country guide · data 2026 · accessed 8 October 2026 · verified 16 October 2026
  23. QA vendor rate page (vendor not named)
    QA vendor rate page · data 2026-07-13 · accessed 8 October 2026 · verified 8 October 2026
  24. QA vendor rate page (vendor not named)
    QA vendor rate page · data 2026-04-25 · accessed 8 October 2026 · verified 8 October 2026
  25. QA vendor rate page (vendor not named)
    QA vendor rate page · data 2026-10 · accessed 8 October 2026 · verified 8 October 2026