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Outsourcing or in-house cost work: the real calculation

📐 Focus⏱ 7 min read

What you will find in this article Should you recruit a construction economist or outsource the work? Every architectural practice asks the question above a certain volume of projects, and the answer turns on fewer variables than people assume. This guide sets out the real economics, the decision matrix by practice profile, and the concrete situations where outsourcing is not only cheaper but more reliable than bringing the work in-house.

1. What an in-house economist really costs

Most practices considering a recruitment reason from the gross salary, 32 000 to 45 000 € a year depending on experience. That framing is wrong: the real employer cost includes social contributions, training, professional software and the HR overhead. The table below compares the total cost with outsourcing.

Cost item In-house economist, permanent contract Outsourced economist
Gross salary 32 000 – 45 000 € a year No payroll cost
Employer social contributions, around 45 % 14 400 – 20 250 € a year None
Continuing training 500 – 2 000 € a year Included, carried by the provider
Software and licences 2 000 – 5 000 € a year Included, carried by the provider
Total annual employer cost 49 000 – 72 000 € a year Billed by use, nil with no project
Availability Limited to one full-time colleague On demand, scaling with the workload
Professional indemnity To be taken out separately The economist's own cover, included
HR, holidays, cover Managed internally No management, continuity guaranteed
Range of skills One profile, one specialism A pool of economists with varied specialisms

The total employer cost of an in-house economist runs between 49 000 and 72 000 € a year, that is 4 100 to 6 000 € a month. That cost is fixed: it falls due whether the practice has three projects running or thirty. Outsourcing costs nothing when there is no project, and its cost tracks the real workload directly.

2. The break-even volume

At what volume does recruiting become worthwhile? The answer depends on the average cost of an outsourced commission and the number of commissions a year.

Taking an outsourced commission at an average of 1 500 € per project, outline estimate, tender package and tender analysis on a standard scheme, the break-even sits between 33 and 48 commissions a year, according to whether the employer cost is 49 000 or 72 000 €. For the great majority of French architectural practices, producing 10 to 25 projects a year, that threshold is not reached.

ℹ How the break-even is calculated The threshold in commissions per year is the annual employer cost divided by the average cost of an outsourced commission. First example: 55 000 € of employer cost divided by 1 500 € per commission means 37 commissions a year are needed simply to match the outsourced cost. Second example: a practice producing 20 cost commissions a year spends 30 000 € on outsourcing, which is 25 000 € less than an in-house economist at the lowest employer cost.

3. The case for bringing it in-house

Recruiting is not only a question of break-even; there are legitimate reasons to prefer an in-house economist.

  • Immediate responsiveness: an economist in the office can be asked at any moment for a quick check, a question about a rate, an estimate updated on revised drawings. That informal availability has a real value that outsourcing does not reproduce exactly.

  • Knowledge of the practice: an in-house economist knows the office's habits, its recurring building types, its usual contacts, its deliverable standards. That knowledge compounds over time.

  • Consistency of method: on a project delivered in several phases, an in-house economist maintains methodological continuity from one stage to the next, which simplifies updates and comparisons between phases.

  • How the practice is seen: for some organisations, large practices, substantial developers, having an economist in-house signals professionalism and is sometimes required by their clients.

4. The case for outsourcing

  • No fixed cost when there is no project: outsourcing is the only option that generates no cost at all in the absence of active work. For practices with variable workload that is a decisive structural advantage.

  • Immediate access to expertise: an outsourced economist arrives with their own tools, price libraries and site experience, and is productive on the first project with no ramp-up.

  • Flexibility on volume: in a busy period, several projects can be handled simultaneously without creating an internal bottleneck.

  • Liability carried by the provider: the outsourced economist's professional indemnity covers their deliverables, so the practice does not put its own insurance behind the estimates and tender analyses.

  • Specialism matched to the project: some project types, hospitals, data centres, complex mixed-use schemes, call for specialist economists who are hard to keep in-house.

5. The decision matrix

Profile Annual volume of estimates Recommended option Main reason
Architect under 10 projects a year, no economist Under 5 Outsource entirely The fixed cost is unjustifiable, the return on a recruitment is negative
Architect with 10 to 30 projects a year, occasional overload 5 to 15 Outsource occasionally Smooths the peaks without recruiting
Practice above 30 projects a year, steady flow 15 to 30 Hybrid An in-house economist for the base load, outsourcing for the peaks
Large practice with in-house economists Over 30 In-house The critical mass justifies the fixed costs
Developer or repeat client with no cost team Variable Outsource with a service level Flexibility and expertise without recruiting
One-off client, a single project 1 to 2 Outsource entirely No recruitment can be justified for one project

The hybrid profile, an in-house economist for the base load plus outsourcing for the peaks, is often the most effective solution for mid-sized practices. It maintains an internal cost capability while absorbing overload without degrading either quality or delivery times.

In summary

The real employer cost of an in-house economist is 49 000 to 72 000 € a year, which means 33 to 48 commissions a year are needed to break even against outsourcing. For most French architectural practices, at 10 to 25 projects a year, that threshold is not reached. Recruiting makes sense for large organisations above 30 commissions a year, or where informal responsiveness and knowledge of the practice are decisive. Outsourcing is optimal for practices with no in-house economist, for variable workloads and for one-off projects. The hybrid model, in-house for the base load, outsourced for the peaks, is the most effective solution for mid-sized practices.

The nature of the figures quoted

The percentages and amounts quoted on this page are orders of magnitude for framing, not measurements. They illustrate mechanisms and proportions, and they substitute neither for a tender exercise nor for an estimate prepared on drawings.

Sources: the BT construction cost indices published monthly by INSEE on its 2010 base, used to update the figures · construction cost statistics from SDES, the statistical service of the ministry responsible for construction · regulatory texts published in the Journal officiel and consolidated on Légifrance for the requirements cited.

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