Cost of Offshore Development in the Czech Republic

From time to time I am asked to help setup an offshore development site in the Czech Republic. This post should answer all future requests:

The first chart below shows the falling exchange rate of US Dollar (from 42 Czech Korunas per US$ in 2000 to 15,80 CZK/USD today) and the increased salary of Java developer (from 40 000 CZK to 85 000 CZK in the same period). This means that the cost of development increased 565% in dollar terms!!!

And not only are Czech developers more and more expensive. The competition for talent increased the expectations for employee benefits as well. Here are top ten employee benefits expected in the IT industry (My favorites are number 5 and 6!):