Claude AI can displace 50% of your tech vendor budget. Case study
Claude AI can displace 50% of your tech vendor budget. Case study

Claude AI can displace 50% of your tech vendor budget. Case study

Having 15 years in tech consulting and now use various LLM for programming and management. So this a proven playbook for CFO and CTO how to reduce vendor dependency and automate delivery

Decided to systematize my experience on how headcount can be changed so I ran numbers for a 100-person program (10 onsite senior devs/architects, 50 offshore devs, 25 QA, 5 BAs, 8 PMs, 2 program managers).

Claude AI Replacement:

  • 20 Claude agents replace 50 offshore devs
  • 15 QA/BA tasks automated, humans retained for edge cases
  • PM automation handles ~30–40% of workload

Budget Impact:

  • Original cost: $13.7M/year
  • New cost with Claude: $6.5M/year → $7.2M savings (~53%)

Productivity / Quality:

  • Bug fixing & refactoring: 2–2.5× human throughput
  • New feature dev: 2× human
  • TDD/automated tests: 2× human coverage
  • Quality matches or exceeds mid-senior offshore engineers

Claude AI + retained humans = lower cost, higher throughput, strong TDD/testing, multi-file refactors, and still keeps humans for edge-case judgment.

submitted by /u/Donechrome
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