I'm always curious about the math behind the cost savings in these types of off-shoring arrangements. I'm sure I'm missing something here, but if the HCL contra

I'm always curious about the math behind the cost savings in these types of off-shoring arrangements. I'm sure I'm missing something here, but if the HCL contract is for $50M, and they're claiming savings of $30M, that means that the expenditures for the original 97 employees+contractors would have worked out to approximately $825,000 per head, on average. ($80M / (49 + 48)) Now I know wages in the Bay Area are skewed, but even all in with benefits I'm sure that's much higher than the salaries of the replaced individuals. Best to those being replaced, I'm sure they'll be picked up by smarter employers. EDIT: Thanks to @jt2190 and @ar-jan for pointing out that I forgot to divide by 5, which gives a much more reasonable answer. It's a little too early here... ;)