Expertise · Should we switch to long-term hiring

How many design hours per month make building a team cheaper than outsourcing?

The question is not how many publications, but how many hours are actually used regularly each month.

Quick summary

The breakeven point is not calculated by the number of tasks or publications, but by the actual design hours used each month, compared to the total real cost of an equivalent internal employee in the Vietnamese market. There is no common hour threshold reliable enough to apply directly: your threshold must be calculated based on salary, benefits, recruitment costs, and the actual risk of vacant positions in your business. When the hours used are not large enough or fluctuate seasonally, flexible outsourcing is often cheaper than maintaining a fixed annual payroll.

Quick comparison
You should choose this direction when
  • the hours used consistently exceed the self-calculated threshold based on Vietnamese wages
  • the volume is predictable for many months
Not needed when.
  • the hours used are not enough
  • the volume fluctuates seasonally
  • not wanting to bear fixed costs for the whole year

When considering whether to build an in-house design team, the most common question Sinh Vũ hears is: "How many banners and social media posts should we hire someone for each month?" That is the wrong unit of measurement. The number of publications does not indicate a designer's workload, as each type of task has very different hour requirements. The correct comparison unit is the actual design hours used each month.

Why should it be calculated in actual usage hours?

A month may consist of thirty social media posts and a capability document. Twenty posts can be created in two days if templates are available; the capability document may take three weeks. Counting tasks will yield a number that is completely skewed from reality. Only when you know the total actual design hours consumed each month can you compare it to the cost of maintaining an internal resource working those exact hours.

The simplest way: record the hours of each task over two to three consecutive months, then calculate the average. If there is no historical data, estimate based on the type of work and complexity level, then multiply by the average number of repetitions per month.

The true cost of internal operations: salaries are not everything

Salary is the most visible cost but not the only one. When you hire an in-house designer, the actual costs include:

  • Gross salary and mandatory benefits (social insurance, health insurance, unemployment insurance as per Vietnamese regulations)
  • The cost of design software and resources (Adobe, Figma, licensed fonts)
  • Recruitment costs when needing to replace someone (job posting, interview time, onboarding time)
  • The gap of an empty position (time without a person when staff are on leave or resigning, but fixed costs continue to incur).
  • The time for management and training from superiors.

Practical sources from Western agencies like Orbix and Superside note that the true cost of internal hiring is often significantly higher than surface salary levels. This is true in Vietnam, although the specific differential depends on each business.

Salary is the most visible cost. The actual cost also includes benefits, taxes, leave, recruitment fees, vacant positions, and software. Internally, it appears cheaper than reality if only salary is considered.

Orbix, Superside (Western context, adjusted according to Sinh Vũ practices)

The way to calculate your own break-even threshold for your business.

There is no reliable common hour number that can be applied directly. You must calculate your threshold based on four steps:

  • Step 1. Determine the gross salary of a capable designer for the work you need, in the Hanoi or Ho Chi Minh City market.
  • Step 2. Add hidden costs: estimate mandatory benefits, software, and a contingency for recruitment and vacancy costs.
  • Step 3. Divide the total monthly costs by the actual working hours in that month (excluding holidays and average leave). This is the internal cost calculated per hour.
  • Step 4. Compare that figure with the hourly rate of the outsourcing unit you are considering. When your actual usage hours are substantial and consistent over several months, the internal hourly cost will be lower than hiring on an ad-hoc basis.
Flexible outsourcing is suitable when usage hours are not large enough, or fluctuate significantly during peak seasons. You pay according to actual needs, without bearing fixed costs during low periods. Disadvantage: hourly costs are higher when sustainable volume increases. Building an internal team is beneficial when usage hours are large enough, predictable, and maintained over months. The advantage is that hourly costs decrease over time and capabilities accumulate within the business. Disadvantage: fixed costs even during low periods, and the risk of losing capability when someone leaves.

Common mistakes when comparing

  • Using hourly thresholds from Western sources as a hard number, then applying them directly to the Vietnamese context without adjusting for actual wages and costs.
  • Counting tasks instead of measuring actual hours, causing the comparison results to be completely skewed.
  • Overlooking hidden costs and the risk of empty seats makes internal operations seem cheaper than they really are.
  • Calculating the break-even point based on peak season volume, but in reality, the low season volume is what you have to bear year-round.

The viewpoint of Sinh Vũ

Sinh Vũ organizes the O1 service based on an hourly budget because this unit allows for direct comparison: clients know how many hours they consume each month and can place that figure next to internal costs converted to hours to draw their own conclusions. O1 packages range from 80 to 180 hours per month, with a mechanism to carry over a maximum of 20% of unused hours to the next period and extend to 130% of hours during peak seasons, allowing clients to pay according to actual needs instead of maintaining idle staff during low periods.

Sinh Vũ does not provide a common breakeven threshold for all clients. In the startup phase, the studio works with you to assess the actual workload and calculate a threshold that fits your company's personnel costs. This is a perspective from studio operational practice, not financial consulting or result commitments.

The tool brings back.

Decision checklist

Topic: Break-even point: when to build a team instead of outsourcing. Sinh Vũ guide, sinhvu.com

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Select each item you find appropriate, then print or save as PDF to take with you.

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Questions to answer before deciding

If you have marked most of the signs above, this is the time to discuss in more detail. Sinh Vũ can help you review and propose a direction.

References

Orbix, In-House Design Team vs Design Agency (Western context, needs adjustment for use in Vietnam). Superside, In-House vs Agency (Western context). Sinh Vũ, operational data for service O1 (hourly fund, internal practices). This is a perspective from studio operational practice, not financial consulting or result commitments.

Frequently asked questions

External sources suggest that if you spend more than 40 hours a month, you should hire internally. Does that figure apply to Vietnam?

Cannot be applied directly. That threshold is based on salary and benefits costs in Western markets, which are significantly higher than in Vietnam. You need to recalculate based on the actual salary of a designer at a similar level in Hanoi or Ho Chi Minh City, plus hidden costs, to find a suitable hourly rate.

In addition to salary, what else should be considered when comparing internally with outsourcing?

Mandatory benefits (social insurance, health insurance, unemployment), recruitment costs when needing to replace personnel, design software fees, and the gap when personnel are absent or leave. These costs are often overlooked in preliminary comparisons, making internal costs appear cheaper than they actually are.

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