Offshore development team for US startups
Sprout gives US founders a senior product team in Karachi, Pakistan, contracted through a US company. You sign with Sprout's US LLC in Albuquerque, New Mexico, pay in US dollars, and own the IP on full payment. Squads start from $6,000 a month and MVPs from $12,000, while a single in-house software developer in the US costs about $14,000 a month.
| Option | Cost | What it includes |
|---|---|---|
| Software developer in-house, US median | about $14,000 a month | $135,980 median salary (BLS, May 2025) plus roughly 25% for benefits, payroll tax and equipment. |
| Senior software engineer in-house, US | $15,000 to $20,000 a month | Fully loaded, before recruiting fees and months of hiring time. |
| Sprout embedded squad | from $6,000 a month | Engineers, a designer and a PM, sized to your roadmap. 14 days' notice to cancel. |
| Sprout MVP build | from $12,000 | Fixed scope, launch-ready in 6 to 12 weeks, milestone payments. |
Sources: US Bureau of Labor Statistics, Occupational Outlook Handbook: Software Developers (May 2025 pay data). Ranges are approximate and vary by city, seniority and stack.
Contracts, billing and IP
Time zones
What the price difference buys
When to hire in-house instead
Is it safe for a US startup to hire an offshore development team?
It is when the contract, IP and communication are set up properly. With Sprout, US founders sign with a US LLC in Albuquerque, New Mexico, pay in US dollars, and get the IP assigned to their company on full payment. The team in Karachi works in two-week sprints with a demo every sprint and a weekly written update.
How much does an offshore development team cost compared to hiring in the US?
A software developer in the US earns a median of $135,980 a year (BLS, May 2025), or about $14,000 a month once benefits, payroll tax and equipment are added. Sprout's embedded squads, with engineers, a designer and a PM, start from $6,000 a month, and fixed-scope MVPs start from $12,000.
What hours does a Pakistan-based team overlap with US founders?
Pakistan is on UTC+5, 9 to 10 hours ahead of US Eastern time. Pakistani evenings overlap with East Coast mornings, which is when calls and reviews are usually scheduled. West Coast founders get the same visibility through written weekly updates and async reviews.