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HCOAudit – Standard

The standard HCOAudit is a cost analysis that includes all cost components associated with both outsourcing and as well as maintaining an in-house team. These include:

For Outsourcing:

  • Vendor fees and contract costs

  • Hourly / Monthly cost

  • Additional costs for specialized skills or technologies

  • Travel and communication expenses, if applicable

For In-house Team:

  • Salaries and benefits for team members

  • Recruiting and hiring costs

  • Infrastructure and equipment expenses

  • Training and professional development costs

  • Employee benefits (healthcare, retirement plans, etc.)


To generate the HCOAudit, financial data is collected for each cost component above. In most cases, accurate figures can be generated through a brief consultation with the finance or HR department of the company for which the audit is being performed.

Once the data is collected, the HCOAudit will be generated to include analysis of the following:

Total Costs for Each Option: showing all the cost components to determine the total cost of outsourced resources and the total cost of maintaining in-house employees.

Breakdown of Costs Over Time: considers the duration of the engagement or the period for which costs are being evaluated. 

Scale and Flexibility: considers how costs change with the size of the team or the scope of the engagement. 

EBITDA Calculation: The HCOAudit applies a conservative multiple to the savings associated from outsourcing recommendations and showing ranges from conservative to aggressive (based on outsourcing commitment)

Execution Roadmap: outlines how to use outsourced staff augmentation to achieve outcomes presented in the EBITDA calculation.

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