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Title: Saturday funnies: What We Are Competing Against - we stay globalistic and we lose
Source: [None]
URL Source: [None]
Published: Oct 18, 2008
Author: Me, Me, Me
Post Date: 2008-10-18 15:42:53 by a vast rightwing conspirator
Keywords: None
Views: 881
Comments: 16

These are real figures people so, take a look at them and explain how we get to keep our jobs in this country, for the natives. I only have the figures for IT but I doubt it's a lot different in other areas.

An average 'data center' IT worker can be had for about $40,000/year if it's off-shore or $60,000/year if the worker is brought into the US - that's what the company pays to the Indian outsourcer. And that's it. For off-shored 'help' there's no expense of office, health care, pension, social security, whatever. The on-shore dudes are usually crammed 2 into a 8ft by 7ft cube and the Indian outsourcer buses them in and out of work and stores them at some dormitories overnight.

The average equivalent native IT worker costs $150,000-250,000/year, which includes, of course, health insurance, pension, 401k, social security, office space... whatever.

Is there any wonder why I am not allowed to hire a native for the open position I have now and I am forced to either accept an Indian or go without?

Question is: if we are to stay globalistic, we either all go on Welfare or we learn to live while making half or one third as much as we do now. Now, what are the advantages of globalism again?

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Begin Trace Mode for Comment # 16.

#16. To: a vast rightwing conspirator (#0)

Your figures are a little bit off based on my experience, but then again, we got burned.

It used to be, back before the world discovered India, that you could get East Indians on sale 4/1, meaning that you got four of them for the salary of one American.

Then you add in infrastructure, time zone issues, remote management issues, rework (because they can't write decent code and have very little creativity) and whatnot and you ended up with only a 20% cost savings and that was back almost a decade ago.

Today, to hire an engineer, it isn't really worth it to go to India. Wages and costs have gone up to where they aren't cost-effective over domestics any longer. Eastern Europe or South America is where its at now if you're desperate to offshore.

If you use a Body Shop here in the US, you end up paying $50-75 an hour for what is still a $35-50k entry-level grunt position. Not worth it. In Silicon Valley, the figures are even more insane. I got a proposal once that a body shop wanted $250/hr for a cluster engineer. The guy's qualifications were that he once took a class in clustering. Couldn't even answer basic technical questions. I hired a domestic for $105k salary ($140k total compensation) and told the body shop to get stuffed.

Then, when you do open a campus in India, you discover that they start heading off to work around 10am and the place is empty by 4.30pm. Also, if you use East Indian management at the campus over there, they hire all their friends and relatives first. When you file a bug they get hacked off over it and argue with you because, of course THEIR code can NEVER have any problems....

We learned this the hard way and got rid of most of that garbage. You may be able to get East Indians 2/1 still, but when you factor in productivity, an American engineer returns 3:1 over an East Indian if you hire carefully, which is the real problem. Lots of managers don't know how to interview and hire properly. They just fill seats and pray.

mirage  posted on  2008-10-22   10:27:59 ET  Reply   Untrace   Trace   Private Reply  


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