In construction, time is money and nowhere is this truer than in the bidding process. Contractors who can prepare and submit more accurate bids have a higher chance of winning projects. But preparing estimates in-house is time-consuming, costly, and often limits how many bids you can realistically submit each month.
That’s why more contractors are turning to outsourced estimating services. By outsourcing, firms can scale their bidding capacity, improve accuracy, and ultimately increase their return on investment (ROI).
This article explores the ROI of outsourcing estimating, with a focus on the number of bids you can submit (and win) when you leverage external expertise.
Why Outsourcing Estimating Boosts ROI
| Factor | In-House Limitation | Outsourcing Advantage |
| Time | Limited staff can only handle a few bids | Dedicated teams deliver multiple estimates fast |
| Cost | Salaries, benefits, software licenses | Pay-per-project or subscription flexibility |
| Accuracy | Risk of errors due to overwork | Peer-reviewed, data-driven estimates |
| Scalability | Hard to ramp up during peak seasons | Flexible capacity for multiple bids |
| Technology | Expensive to maintain advanced tools | Outsourced firms already invest in BIM & AI |
The ROI Formula for Outsourcing
ROI in outsourcing can be measured by comparing the value of additional projects won against the cost of outsourcing.
ROI=(Additional Revenue from Won Bids Outsourcing Cost)Outsourcing Cost×100ROI = \frac{\text{(Additional Revenue from Won Bids Outsourcing Cost)}}{\text{Outsourcing Cost}} \times 100
For example:
- Outsourcing cost: $5,000/month
- Additional projects won: $50,000 in revenue
- ROI = 50,000−5,0005,000×100=900%\frac{50,000 – 5,000}{5,000} \times 100 = 900\%
How Many More Bids Can You Submit?
| Scenario | In-House Only | With Outsourcing |
| Estimators Available | 1–2 full-time staff | Dedicated outsourced team |
| Bids per Month | 3–5 | 10–15 |
| Win Rate (avg.) | 20% | 20–25% |
| Projects Won | 1 per month | 2–4 per month |
Even with the same win rate, more bids = more wins. Outsourcing multiplies your opportunities.
Case Example: ROI in Action
A mid-sized contractor in South Asia was limited to 4 bids per month with an in-house estimator. After outsourcing:
- They increased to 12 bids per month.
- Their win rate improved slightly (from 20% to 23%) due to more accurate estimates.
- Result: They went from 1 project won per month to 3 projects won per month.
Annual Impact:
- Additional 24 projects won.
- Revenue increase: $2.4 million.
- Outsourcing cost: $60,000/year.
- ROI: 3,900%.
Strategic Benefits Beyond ROI
| Benefit | Impact on Business |
| Market Expansion | Ability to bid on larger, more complex projects. |
| Reputation | Professional, client-ready estimates improve credibility. |
| Focus on Execution | Teams spend more time on project delivery, less on paperwork. |
| Competitive Edge | Faster turnaround means never missing a bid deadline. |
Global Perspective: Outsourcing ROI in Emerging Markets
| Region | Outsourcing ROI Trend |
| Asia-Pacific | High ROI due to rapid urbanization and mega-project demand. |
| Middle East | Outsourcing supports mega-developments with international standards. |
| Africa | Contractors gain global competitiveness with outsourced expertise. |
| Latin America | PPP projects demand transparent, accurate estimates — outsourcing delivers ROI fast. |
Final Thoughts
The ROI of outsourcing estimating is clear: more bids, more wins, and more revenue. By leveraging outsourced expertise, contractors can scale their bidding capacity, improve accuracy, and compete more effectively in both local and global markets.
At MSB Estimating, we help contractors maximize ROI by delivering fast, accurate, and cost-effective estimates that integrate seamlessly into your workflow.
Ready to Multiply Your Bids (and Wins)?
Contact MSB Estimating today to learn how outsourcing can help you submit more bids, win more projects, and grow your business.