5 ms·
I can mention one reason why it could happen and would: Price Taking your IT out of SF and SV means you could spend the money you save on offices and increa
by xlayn 11y ago
I can mention one reason why it could happen and would:
Price
Taking your IT out of SF and SV means you could spend the money you save on offices and increase developers salary.
On the other side for developers it could mean better earnings with less being spent on paying rent and other services which could lead to more savings for you.
At industry level this would translate to a competitive advantage as you can build a service cheaper.
- GFK_of_xmaspast 11y agoTaking your IT out of SF/SV means you can pay them less.
- thesimon 11y ago>spend the money you save on offices and increase developers salary. Yeah, the salary of the developers is usually increased when moving into a lower cost of living area, because of all the money the company saves thanks to the low office rent.
- maxxxxx 11y agoSalary increases will certainly not happen. Most likely the opposite.
- ryanSrich 11y agoThat seems counter to other professions. You typically have to pay people more to live in the less desirable areas. Everyone wants to live in <insert cool city here>, so you can pay them less.
- maxxxxx 11y agoThat's not my experience. My company transfers people to India to be point person with an outsourcing company. After a year they get a huge pay cut "because India is so cheap". I highly doubt any computer company will pay people in Kansas City more than in SF. Other industries or the government might but not high tech.
- tedmiston 11y ago> At industry level this would translate to a competitive advantage as you can build a service cheaper. We now have midwestern VCs that are really doubling down on this strategy (e.g., Drive Capital).