When European companies need software developers, they face a fundamental decision: hire in-house or engage an outstaffing partner? The answer depends on more than just salary comparisons.
The True Cost of In-House Hiring
A senior developer in Prague commands a gross salary of EUR 55,000-75,000. But salary is just the beginning.
Total annual cost per developer (in-house):
- Gross salary: EUR 65,000
- Social contributions (34%): EUR 22,100
- Benefits (health, pension, meal vouchers): EUR 4,800
- Equipment and software licenses: EUR 3,500
- Office space (Brno coworking): EUR 4,200
- Recruitment costs (amortized): EUR 5,000
- Management overhead: EUR 8,000
- Training and conferences: EUR 2,500
- Total: EUR 115,100
And this assumes you find and hire the right person — which in the current European market takes 3-6 months on average.
The Outstaffing Model
With outstaffing, you pay a monthly rate per developer that covers salary, benefits, equipment, workspace, and management overhead. Typical rates for senior developers in Czech Republic range from EUR 5,500-8,000 per month.
Total annual cost per developer (outstaffed):
- Monthly rate (mid-range): EUR 6,500
- Annual total: EUR 78,000
That is 32% less than in-house — and you get the developer within 1-2 weeks, not 3-6 months.
What the Numbers Do Not Show
The financial comparison is compelling, but the real advantages of outstaffing are operational:
Speed to start. When you need developers now — for a product launch, a key feature, or to replace someone who left — outstaffing delivers in days, not months.
Flexibility to scale. Need 3 more developers for a 6-month project? Done. Need to scale back after launch? No layoffs, no severance. Outstaffing turns fixed costs into variable costs.
Access to specialization. Need a Kubernetes expert for 3 months? A mobile team for 6 months? Outstaffing gives you access to specialists you would never hire full-time.
Reduced risk. If a developer is not a fit, the outstaffing partner replaces them — usually within a week. Compare that to the painful and expensive process of letting someone go in Europe.
When to Hire In-House
Outstaffing is not always the answer. Hire in-house when:
- The role requires deep, long-term institutional knowledge
- You need someone in leadership (CTO, VP Engineering, team lead)
- The work involves highly sensitive intellectual property
- Your company culture depends on co-located teams
The Hybrid Approach
The most successful European tech companies use a hybrid model: a core in-house team that owns architecture, product vision, and key decisions — supported by outstaffed developers who provide bandwidth, specialization, and flexibility.
This model gives you the best of both worlds: strategic control with operational agility.