Total Cost of Ownership
24-month comparison — outsourcing markup and churn vs. internal talent equity.
Headcount
50 FTE
Annual churn rate
35%
Base unit cost (monthly, EUR)
€1,800
Average training investment / hire (EUR)
€2,500
Outsourcing (Rent)
€3,729,375
Internal Development (Own)
€2,116,576
Long-term delta
−€1,612,799
Cost trajectory — 24 months
Strategic Maturity Point: M3
Outsourcing (Rent)
Vendor unit cost with a 30% markup, amplified month over month by high attrition on the vendor side.
Internal Development (Own)
Higher Year 1 investment in hiring and training; unit economics improve as retention compounds.
Key insight
The markup and turnover cost of external sourcing creates a systemic profit leak. Building internal experts creates long-term operational equity.