QA cost model: in-house versus vendor

In-house fully loaded cost against vendor models over 12 and 24 months, with your numbers.

What this does

Enter the fully loaded cost of building the team yourself: salaries with on-costs, recruitment including replacements, ramp-up, tools, equipment and management time. Then enter each vendor quote as hourly, dedicated team, fixed scope or outcome-based.

The model adds what fees do not show: onboarding, your management overhead, tools and the cost of exit, and gives total cost of ownership over 12 and 24 months for each option.

See a sample output

QA cost model: in-house versus vendor

ChooseQAVendor framework v1.0. Sample with made-up example numbers. They are not market rates. Nothing you enter in the toolkit is sent anywhere.

Total cost of ownership

Option12 months24 months
In-house team315,225 EUR572,325 EUR
Time and materials285,600 EUR544,200 EUR
Dedicated team271,200 EUR515,400 EUR
Fixed scope271,200 EUR515,400 EUR
Outcome-based247,200 EUR467,400 EUR

Totals include onboarding, your own management time and the cost of exit, not just the vendor's fees. Compare options over the same period and the same scope.

In-house team

Cost line12 months24 months
Salaries with employer on-costs225,000 EUR450,000 EUR
Recruitment, including replacements for attrition27,600 EUR31,200 EUR
Ramp-up (half productivity during ramp months)28,125 EUR28,125 EUR
Tools and licences6,000 EUR12,000 EUR
Equipment6,000 EUR6,000 EUR
Management time22,500 EUR45,000 EUR

Time and materials

Cost line12 months24 months
Vendor fees from the quote230,400 EUR460,800 EUR
Onboarding (your team's time and any setup fee)15,000 EUR15,000 EUR
Your management overhead25,200 EUR50,400 EUR
Tools you pay for to support the vendor3,000 EUR6,000 EUR
Exit and knowledge transfer (at the end of the period)12,000 EUR12,000 EUR

Dedicated team

Cost line12 months24 months
Vendor fees from the quote216,000 EUR432,000 EUR
Onboarding (your team's time and any setup fee)15,000 EUR15,000 EUR
Your management overhead25,200 EUR50,400 EUR
Tools you pay for to support the vendor3,000 EUR6,000 EUR
Exit and knowledge transfer (at the end of the period)12,000 EUR12,000 EUR

Fixed scope

Cost line12 months24 months
Vendor fees from the quote216,000 EUR432,000 EUR
Onboarding (your team's time and any setup fee)15,000 EUR15,000 EUR
Your management overhead25,200 EUR50,400 EUR
Tools you pay for to support the vendor3,000 EUR6,000 EUR
Exit and knowledge transfer (at the end of the period)12,000 EUR12,000 EUR

Outcome-based

Cost line12 months24 months
Vendor fees from the quote192,000 EUR384,000 EUR
Onboarding (your team's time and any setup fee)15,000 EUR15,000 EUR
Your management overhead25,200 EUR50,400 EUR
Tools you pay for to support the vendor3,000 EUR6,000 EUR
Exit and knowledge transfer (at the end of the period)12,000 EUR12,000 EUR

Assumptions

  • In-house: attrition creates replacement hires each year; ramp-up is costed as half productivity during the ramp months.
  • Vendor: fees come from the vendor's quote; the model does not contain market rates.
  • Exit cost is counted once, at the end of the period, so the comparison includes the cost of leaving.
  • Fixed scope: price per release multiplied by releases per year. Change requests are not included; ask for their pricing.

Enter your numbers

The model contains no market rates. Every figure comes from you: your salaries, your overheads and each vendor's quote. Empty fields count as zero.

Shown next to amounts, for example EUR, GBP or USD.

In-house team

Your salary band for the role.

Taxes, pension, benefits, as your finance team calculates them.

Agency fees or internal recruiting time.

Share of the team you expect to replace each year.

Months until a new hire is fully productive.

Vendor quotes

Time and materials

Use the blended rate the vendor quoted, or compute one from their rate card.

Hours you expect to buy each month for the agreed scope.

Dedicated team

As named in the proposal.

Average of the quoted monthly fees.

Fixed scope

Or the total fixed price divided by the number of releases it covers.

Outcome-based

The fixed part of the outcome-based price.

The part that depends on measured outcomes, at the level you expect.

Costs of any vendor that fees do not show

Your team's time to onboard the vendor plus any setup fee.

Reviews, meetings, triage, reporting.

Exit assistance fees plus your team's time to take over or move to a successor.

Total cost of ownership
Option12 months24 months
In-house team00
Time and materials00
Dedicated team00
Fixed scope00
Outcome-based00

QA cost model: in-house versus vendor

ChooseQAVendor framework v1.0. Numbers are the ones you entered. Nothing you enter in the toolkit is sent anywhere.

Total cost of ownership

Option12 months24 months
In-house team00
Time and materials00
Dedicated team00
Fixed scope00
Outcome-based00

Totals include onboarding, your own management time and the cost of exit, not just the vendor's fees. Compare options over the same period and the same scope.

In-house team

Cost line12 months24 months
Salaries with employer on-costs00
Recruitment, including replacements for attrition00
Ramp-up (half productivity during ramp months)00
Tools and licences00
Equipment00
Management time00

Time and materials

Cost line12 months24 months
Vendor fees from the quote00
Onboarding (your team's time and any setup fee)00
Your management overhead00
Tools you pay for to support the vendor00
Exit and knowledge transfer (at the end of the period)00

Dedicated team

Cost line12 months24 months
Vendor fees from the quote00
Onboarding (your team's time and any setup fee)00
Your management overhead00
Tools you pay for to support the vendor00
Exit and knowledge transfer (at the end of the period)00

Fixed scope

Cost line12 months24 months
Vendor fees from the quote00
Onboarding (your team's time and any setup fee)00
Your management overhead00
Tools you pay for to support the vendor00
Exit and knowledge transfer (at the end of the period)00

Outcome-based

Cost line12 months24 months
Vendor fees from the quote00
Onboarding (your team's time and any setup fee)00
Your management overhead00
Tools you pay for to support the vendor00
Exit and knowledge transfer (at the end of the period)00

Assumptions

  • In-house: attrition creates replacement hires each year; ramp-up is costed as half productivity during the ramp months.
  • Vendor: fees come from the vendor's quote; the model does not contain market rates.
  • Exit cost is counted once, at the end of the period, so the comparison includes the cost of leaving.
  • Fixed scope: price per release multiplied by releases per year. Change requests are not included; ask for their pricing.
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Framework v1.0 · released 2026-09-24 · changelog

Questions buyers ask

Why are there no default rates?
Rates vary by country, seniority, scope and contract terms, and any number we embedded would become an anchor. Enter the quotes you actually received and your own salary bands.
Why include exit cost?
Leaving a vendor costs money: exit assistance, knowledge transfer and your team's time. Counting it up front stops a cheap entry price hiding an expensive exit.
How do we compare quotes with different models?
Convert each quote into monthly or yearly fees for the same scope, then add the costs the fees do not show: onboarding, your management time, tools and exit. The totals are comparable; the rates alone are not.
What does the sample use?
The sample output uses made-up numbers to show the layout. They are not market rates and should not be used as a benchmark.