Comparison

Outsourcing vs AI Agents
for Software Development

A side-by-side comparison across 10 critical factors — cost, speed, quality, scaling, and more. See why companies are switching from outsourcing to AI-powered development.

Head-to-Head: Every Factor That Matters

Factor Traditional Outsourcing iFeo (AI Agents)
Time to Start 2–6 weeks onboarding, context dumps, codebase walkthroughs Start shipping in hours — AI agents read your codebase instantly
Cost Per Sprint $15,000–50,000+ (devs, PMs, QA — all billed hourly) From $2,500/mo — predictable, no hidden PM or QA fees
Availability Business hours only, timezone delays, multi-day feedback loops 24/7 availability — instant feedback, no timezone friction
Knowledge Retention Knowledge lost on team rotation, context degrades over time Perfect memory — zero context loss between sessions
Code Quality Varies by developer, inconsistent across sprints Consistent, tested, documented — enforced standards every time
Scaling Weeks to hire and onboard additional resources Instant scaling — add capacity on demand
Human Oversight Full human judgment (but slow and expensive) Human-in-the-loop at every critical decision point
SDLC Coverage Fragmented — separate teams for design, dev, QA, DevOps End-to-end: requirements → architecture → code → test → deploy
Communication Email chains, standups, status meetings, Slack noise Structured specs and artifacts — no ambiguity
Vendor Lock-in High switching cost — tribal knowledge trapped in the team All code yours — GitHub native, standard tooling

The Real Cost of Software Outsourcing in 2026

A typical 6-month project with a 5-person outsourced team costs $180,000–600,000+. The same scope with iFeo: $15,000–45,000.

Traditional Outsourcing

5-Person Dev Team

$30K–100K/mo

2 devs + PM + QA + DevOps · hourly billing

  • $50–150/hr per team member
  • PM overhead: 15–25% of budget
  • 2–6 weeks onboarding (unbillable)
  • Scope creep = unpredictable costs
  • Team rotation = repeat onboarding
iFeo AI Agents

Full AI Development Team

$2,500–7,500/mo

All agents included · predictable monthly pricing

  • Full SDLC coverage from day one
  • No PM overhead — AI orchestrates
  • Start shipping in hours, not weeks
  • Flat monthly pricing — no surprises
  • Zero onboarding cost on repeat work

When Traditional Outsourcing Still Makes Sense

AI agents aren't the right fit for every project. Here's when traditional outsourcing may be a better choice.

Highly Ambiguous Requirements

Projects where business goals are still forming and require deep stakeholder workshops, user research, and iterative discovery over months.

Regulated Industries

Compliance-heavy domains (healthcare, finance) where human accountability and audit trails from named individuals are legally required.

Long-term Staff Augmentation

When you need embedded team members who attend standups, build relationships, and become part of your company culture over 12+ months.

Hardware/Embedded Systems

Physical device integration, firmware, or hardware-dependent projects that require hands-on testing with physical equipment.

Get Started

Ready to See the Difference?

Book a 30-minute demo and see iFeo's AI agents in action. Compare real output from your own project specs — outsourcing quote vs iFeo delivery.

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