The Computational Cards: A CFO-Ready TCO Model
Foreword: Moving Beyond the Rate Card
The hourly rate is the most misleading number in IT staffing. It tells you what you pay, but not what you get. True Total Cost of Ownership (TCO) is a function of not just salary, but speed, quality, and risk. A "cheaper" offshore team that ships buggy code slowly is infinitely more expensive than a nearshore pod that delivers clean code in your time zone.
The Playbook's Purpose
These "Computational Cost Cards" are designed to be your internal business case. Each card isolates a "hidden tax" of traditional staffing models, provides a simple formula to quantify its impact, and shows how an integrated platform like TeamStation AI turns that cost into a saving. Use this framework to have a data-driven conversation with your CFO and move your organization from cost-based accounting to value-based investment.
The Computational Cost Cards: A CFO-Ready Analysis
Each card isolates a specific "hidden tax" on your engineering budget, quantifies its impact, and shows the TeamStation AI solution. Use these to build your business case.
Seat Cost Delta — Sticker vs Fully-Loaded
Cost
The Pain (Problem)
U.S. senior salaries look manageable… until benefits, taxes, tools, and overhead land on the P&L.
The Gain (Solution)
Replace/augment seats with nearshore seniors at an all-in, fully-loaded rate.
Computational Proof
Example Calculation
Inputs:
Outputs:
Based on a fully-loaded cost including a typical 35% for U.S. payroll burden (taxes, benefits, 401k).
Team Delta — Six Seniors, One Decision
Cost
The Pain (Problem)
You need a full squad; headcount is frozen.
The Gain (Solution)
6 nearshore seniors under one contract, one invoice, one SLA.
Computational Proof
Example Calculation
Inputs:
Outputs:
Scales linearly. This saving alone can fund an entire additional product team or strategic initiative.
Cost of Vacancy — The Invisible Tax
Speed
The Pain (Problem)
Roles stay open; velocity stalls; opportunity cost compounds.
The Gain (Solution)
Bench-ready nearshore talent; start in weeks, not quarters.
Computational Proof
Example Calculation
Inputs:
Outputs:
Time-to-Hire (TTH) is a direct lever on revenue. Faster hiring pulls future revenue into the current fiscal year.
PR “LGTM” Latency — Days Lost to Time Zones
Speed
The Pain (Problem)
One PR → one day lost; reviews trickle in overnight.
The Gain (Solution)
Same-day PR SLAs in your timezone.
Computational Proof
Example Calculation
Inputs:
Outputs:
This calculates the cost of developer time wasted waiting for feedback, a direct hit to productivity.
Faster Onboarding — Time-to-Productivity
Speed
The Pain (Problem)
New engineers take weeks to add useful code.
The Gain (Solution)
Playbooked onboarding with nearshore leads embedded in your rituals.
Computational Proof
Example Calculation
Inputs:
Outputs:
A structured onboarding process directly translates to faster time-to-value for every new hire.
Change-Failure Rate — Fewer Hotfix Fridays
Quality
The Pain (Problem)
Failed changes burn cash and trust.
The Gain (Solution)
Shift-left QA, contract tests, and canary releases run by our platform crew.
Computational Proof
Example Calculation
Inputs:
Outputs:
Improving Change Failure Rate (CFR), a core DORA metric, directly reduces the high cost of incident response.
Attrition & Replacement — Context Reset Penalty
People
The Pain (Problem)
Night-shift offshore drives churn; you keep paying the knowledge tax.
The Gain (Solution)
Same-day schedules + retention ladders + documented runbooks.
Computational Proof
Example Calculation
Inputs:
Outputs:
Lowering attrition avoids the massive costs of recruiting, interviewing, and ramping up a replacement.
Management Overhead — Meetings You Don’t Need
Ops
The Pain (Problem)
EMs/PMs spend hours herding vendors across time zones.
The Gain (Solution)
Single vendor, single SLA, single cadence.
Computational Proof
Example Calculation
Inputs:
Outputs:
This is a direct productivity gain for your most expensive and valuable management resources.
Compliance & Security — Questionnaire Drag
Risk
The Pain (Problem)
SOC2/ISO gaps stall enterprise deals.
The Gain (Solution)
Built-in SSO/SAML/SCIM, SBOMs, audit trails—operated in-timezone.
Computational Proof
Example Calculation
Inputs:
Outputs:
Having an audit-ready posture from day one dramatically reduces the internal time spent on security questionnaires.
All-in vs. “All-these-Invoices”
Consolidation
The Pain (Problem)
Fragmented vendors → duplicated tools, travel, and shadow staffing.
The Gain (Solution)
Consolidate under one SLA at a fully-loaded rate.
Computational Proof
Example Calculation
Inputs:
Outputs:
Vendor consolidation reduces direct costs and eliminates the soft costs of managing multiple relationships.