TL;DR: Offshore SDR ROI at a Glance
- 50–70% cost savings compared to U.S. SDRs ($90–100K vs $30–40K fully loaded).
- Ramp faster: offshore SDRs reach productivity in weeks, not 3–6 months.
- Lower turnover: retention improves by 20–30% vs U.S. hires.
- Pipeline scales: 2–3x more activity at lower cost-per-lead.
The ROI Problem with U.S. SDRs
Hiring and scaling SDR teams in the U.S. is expensive and inefficient.
- High cost: U.S. SDRs average $90–100K per year fully loaded (salary, benefits, tools, office).
- Ramp times: It takes 3–6 months for a new SDR to become productive.
- Turnover: Attrition is high, ~39% churn within 18 months, which resets ramp time and recruiting costs.
Each mis-hire costs companies tens of thousands of dollars in sunk recruiting, onboarding, and lost pipeline.
💡 Why it matters: U.S. companies face ballooning CAC (Customer Acquisition Costs) and pipeline instability.
How Offshore SDRs Cut Costs
Offshore hiring flips the economics of sales development.
- 50–70% lower labor costs: Offshore SDRs in regions like the Philippines, India, South Africa, and LATAM earn $800–$2,500/month.
- All-in savings: ~$30–40K/year vs $90–100K/year in the U.S.
- Provider model: Outsourcing often bundles benefits, office, equipment, and management oversight.
Offshore SDRs typically cost half to one-third of their U.S. counterparts, without reducing output quality.
💡 Why it matters: Companies reinvest savings into more headcount, better tooling, or marketing, multiplying ROI.
Ramp Time: Faster Payback
Speed to productivity is where offshore SDRs shine.
- U.S. SDRs: 3–6 months to hit quota.
- Offshore SDRs: Often productive within 4–8 weeks, thanks to pre-vetting and managed onboarding.
- Lower sunk costs: Shorter ramps reduce wasted salaries during the “unproductive” phase.
💡 Why it matters: Faster ramp = faster payback period and quicker ROI realization.
Quality of Talent (Not Just Cheaper)
There’s a misconception that offshore means “lower quality.” The opposite is true when you vet properly.
- High English fluency: Countries like the Philippines, South Africa, and Pakistan have thousands of professional SDRs with neutral accents.
- Sales training: Many offshore SDRs are career professionals, not stepping stones to AE roles.
- Culture fit: Providers screen for coachability, reliability, and communication.
RGP’s 4-step vetting process ensures only the top ~1% of candidates make it onto client teams.
💡 Why it matters: Offshore SDRs match, and often exceed, the professionalism of U.S. SDRs, at a fraction of the cost.
Pipeline & Revenue Impact
With lower costs, you can deploy more SDRs without ballooning spend.
- More activity: Offshore SDR teams generate 2–3x more calls, emails, and booked meetings for the same budget.
- Lower CPL (Cost per Lead): More meetings at lower cost reduces CAC.
- Scalable model: Easier to grow from 2 → 10 SDRs offshore than in the U.S.
Example: Replacing 3 U.S. SDRs with 6 offshore SDRs can double pipeline volume while reducing costs by 50–70%.
💡 Why it matters: Offshore SDRs allow you to scale outbound motion aggressively, without ROI erosion.
Long-Term ROI & Retention
The biggest hidden ROI driver? Retention.
- U.S. SDRs: Average tenure ~18 months.
- Offshore SDRs: Many stay 2–4 years, especially when managed via providers.
- Consistency: Long tenure compounds learning, brand knowledge, and buyer familiarity.
💡 Why it matters: Consistency drives better results, less churn, and lower long-term recruiting costs.
Future Trends in Offshore SDR Hiring
- AI-powered tooling: Offshore SDRs increasingly use AI to handle personalization and scale.
- Global growth: Companies worldwide are increasingly hiring offshore SDRs, whether from Asia, Africa, Eastern Europe, or Latin America to optimize costs, extend coverage, and align with their sales strategy. Time zone overlap can be a factor, but the bigger trend is tapping into high-quality SDR talent anywhere in the world.
- Specialization: Offshore SDRs aren’t just dialers, they’re skilled in multichannel outreach (calls, LinkedIn, email, video).
- Provider maturity: Firms like RGP offer fully managed, embedded SDRs, not just “bodies.”
💡 Why it matters: The model is evolving from cost arbitrage to quality + scalability.
U.S. SDR vs Offshore SDR (Managed) — Cost, Ramp, Retention & ROI
Dimension |
U.S. SDR (Onshore) |
Offshore SDR (Managed by RGP) |
Notes / Impact |
Fully-Loaded Cost |
~$90k–$100k/yr (salary + benefits + tools + overhead) |
~$30k–$40k/yr (50–70% lower) |
Savings can fund extra headcount, tools, or ads |
Monthly Cost (Typical) |
~$7.5k–$8.5k |
~$2k–$3.5k |
Varies by market, seniority, and model |
Ramp Time to Productivity |
~3–6 months |
~4–8 weeks (pre-vetted + managed onboarding) |
Faster payback; less sunk cost during ramp |
Tenure / Retention |
Higher churn (~18-mo average) |
Often 2–4 years with managed providers |
Longer tenure compounds learning & consistency |
Cost per Lead / Meeting |
Higher (labor & overhead) |
Lower (same/better output at reduced cost) |
Improves CAC; enables 2–3× activity per budget |
Time-Zone Coverage |
U.S. hours only |
Nearshore overlap (LATAM) or 24/7 “follow-the-sun” |
Faster response & global reach |
Management Model |
In-house recruiting, training & QA |
Provider-managed (RGP vetting, QA, replacement) |
Less PM load; standardized playbooks & oversight |
Tools & Enablement |
Your CRM/engagement stack |
Same stack + managed onboarding; optional extras |
Faster setup; fewer IT/logistics blockers |
Scalability |
Slower (recruiting + ramp each hire) |
Faster (ready bench, standardized ramp) |
Scale 2→10 SDRs without ballooning costs |
Best For |
Teams needing on-site presence; niche markets with heavy in-person work |
Startups/SMBs/SaaS & agencies needing cost-efficient, scalable pipeline |
Choose by goals: cost, time-zone, language, volume |
Conclusion: ROI Multipliers
Offshore SDRs multiply ROI by addressing the three biggest cost drivers:
- Cost savings: 50–70% lower salaries and overhead.
- Faster ramps: Weeks, not months, to productivity.
- Pipeline growth: 2–3x output at the same or lower budget.
U.S. startups, SaaS, and agencies that adopt offshore SDRs gain a structural advantage: more pipeline, lower CAC, and higher ROI.
Ready to multiply your ROI with vetted offshore SDRs? Let RGP recruit, test, and manage SDRs as part of your team.