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That's only true so long as everyone else is only paying local market rate. Once a company starts offering people in Argentina SF-level pay... that company now
by NateDad 11y ago
That's only true so long as everyone else is only paying local market rate. Once a company starts offering people in Argentina SF-level pay... that company now will get every single qualified developer in that location that they want. So now other companies have to start offering similar wages, or they only get second tier devs. It's called competition.
- morgante 11y agoSure, but as a company there's not really any incentive to do so. I could accomplish a similar effect by merely offering 50% more than the prevailing Argentinian developer wage while still realizing substantial savings over SF rates.
- NateDad 11y ago...until someone else offers 55%, then you offer 60%... until it reaches equilibrium at approximately 100% (and I understand real life is a lot more complicated than one single salary number)