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.

Hiring in-house vs Sprout, for US founders
OptionCostWhat it includes
Software developer in-house, US medianabout $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 monthFully loaded, before recruiting fees and months of hiring time.
Sprout embedded squadfrom $6,000 a monthEngineers, a designer and a PM, sized to your roadmap. 14 days' notice to cancel.
Sprout MVP buildfrom $12,000Fixed 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.

01

Contracts, billing and IP

You sign a contract with Sprout's US LLC in Albuquerque, New Mexico, pay invoices in US dollars, and get the intellectual property in the work assigned to your company on full payment. For your accountant and your investors it looks like any other US vendor. The team does the work from Karachi through Sprout's registered company there.
02

Time zones

Karachi is on UTC+5 all year: 9 to 10 hours ahead of US Eastern time and 12 to 13 hours ahead of Pacific, depending on daylight saving. Pakistani evenings line up with East Coast mornings, so standups, reviews and calls happen live. Work continues while you sleep, and every week ends with a written founder update, so West Coast founders get the same visibility without early calls.
03

What the price difference buys

The gap is not a quality discount. It comes from salaries in Pakistan, where senior engineers come out of universities like LUMS and work in English every day. Sprout has shipped 27+ products, holds a 5.0 Upwork rating with a 100% Job Success Score, and its founder was a founding engineer at Kollegio AI, a Stanford-backed, Reach Capital-funded platform serving 300K+ students.
04

When to hire in-house instead

Once you have product-market fit and a long roadmap, build your in-house core team, because the context they build compounds. Before that, payroll locks in cost before the idea is proven. A studio can keep shipping while you hire, then hand over the code and docs cleanly.
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.