When talking about outsourcing abroad, and especially about setting up an offshore team, the first question that comes to mind is often about cost. How much cheaper is it really ? What is the total cost of an offshore employee ? And above all, how does this cost compare to local recruitment in France or Belgium ? Behind these questions lies a fundamental issue for SMEs : making rational, informed decisions aligned with their growth strategy.
Because no, the offshore model is not just about a “low cost” calculation. It is a strategic lever that allows a company to structure itself intelligently, control its payroll, and access motivated, available, and well-managed talent. To measure its true value, you need to understand what the cost of an offshore employee really covers, especially when recruited in Madagascar.
A face value up to three times lower… but that is only the beginning
The savings generated by outsourcing are undeniable. On average, an employee based in Madagascar, in a dedicated team managed and contracted from Europe, costs 2 to 3 times less than an equivalent in Paris, Lyon, Brussels, or Lille. This is explained first by structural differences in cost of living and average salaries, but also by a more flexible local system of charges and taxation.
Whereas a position in France can cost between €3,500 and €5,000 per month (gross salary + charges + equipment + office), its offshore equivalent may range from €1,200 to €1,900 all inclusive : net salary, supervision, tools, HR management, infrastructure, legal compliance. This is not a surface-level saving. It is a real and measurable reduction in HR costs, without compromising on quality.
What the cost of a well-structured offshore employee includes
Too often, companies only compare the net salary of the offshore employee with that of a local hire, forgetting all the surrounding elements that weigh on their budget. In a structured model like the one proposed by ScaleMyCrew, the cost of an employee in Madagascar covers much more than a simple salary.
It includes a structured recruitment process : sourcing, CV screening, interviews, tests, reference checks. It also covers a contractual framework compliant with European standards, full administrative management, access to professional offices with equipped workstations, high-speed internet connection, communication tools, and business software.
On top of that comes regular HR follow-up : reporting, feedback, skills development plans, absence management, motivation, and retention. It is not a simple “connection” with a Malagasy freelancer. It is a dedicated offshore team, supervised, integrated, and efficient, ready to deliver with rigor.
The hidden costs of local recruitment
On the other hand, local recruitment entails a series of additional costs that are often underestimated. Beyond gross salary, the company must bear employer charges, recruitment costs (time spent, possible agency fees), IT equipment, office costs (rent, charges, furniture), software tools, paid leave, sick leave, and sometimes even long onboarding periods or bad hires.
The total cost of a local position can easily exceed €50,000 to €60,000 per year, without any guarantee of stability. In comparison, a well-managed offshore team not only reduces this bill by 50 to 70 percent but also allows resources to be better allocated to core business roles.
Madagascar: a rare balance between quality, stability, and cost
The choice of Madagascar is not random in this equation. The country offers an excellent quality-to-price ratio, thanks to a French-speaking, skilled, motivated workforce with a true service-oriented culture. The talent pool in Madagascar covers a wide range of functions : administrative assistants, accountants for France or Belgium, developers, customer support agents, digital marketing specialists, e-commerce managers, and more.
The favorable time zone (GMT+3) allows smooth communication with Europe, with no major time difference (only 1 or 2 hours depending on daylight savings). The local cost of living allows for attractive compensation for Malagasy employees while maintaining competitive overall pricing for European companies. This dual social and financial balance is at the heart of the ScaleMyCrew model.
Distinguishing cost from value: the real question
In a context where recruitment is becoming complex, expensive, and risky, it is essential to stop thinking only in terms of “cost per head.” The real question is value created : time saved, responsiveness, flexibility, quality of delivered work, peace of mind for internal teams. An offshore employee in Madagascar can help an SME structure its organization, scale faster, and reduce operational pressure.
Even better, this employee, well managed and integrated into the team, often becomes more stable, loyal, and engaged than a local employee facing constant competition and high turnover in big cities. This is an intangible yet decisive value for any company thinking long term.
Is it risky ? Not if you are well supported
The myth of “risky offshore” still persists. But in reality, the problem comes from poorly structured companies that do not take care of their employees, do not provide proper contracts under European law, and recruit badly. At ScaleMyCrew, each offshore employee benefits from a stable working environment, regular follow-up, and operational coordination with European teams. Remote collaboration tools, agile management methods, and tailored onboarding ensure smooth and rapid integration.
It is not about outsourcing blindly, but about co-building an offshore team integrated into your processes, your culture, and your overall performance.
Conclusion: the cost of offshore is an investment, not an expense
Comparing the costs between a local hire and an offshore employee in Madagascar is asking the right question, but it must be answered in its full complexity. When you factor in recruitment, supervision, stability, tools, charges, and actual results, offshore recruitment appears as a high-value solution, especially for growing SMEs.
With the right support, you are not just reducing costs. You are increasing efficiency, securing processes, saving time, and giving your teams a new way to collaborate. The cost of an offshore employee, well planned and well managed, then becomes a lever for lasting transformation in your company.
Do you want to estimate the cost of an offshore employee for your SME ?
At ScaleMyCrew, we help you build a dedicated team in Madagascar, with a clear, transparent, and 100% compliant approach under European standards. Let’s discuss your goals.
Publié le 26/05/2025