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>"Are their development teams seen as cost centers, or profit centers?" It's not a matter of opinion, but what the term means. They are cost centers unless the
by dreamfactored 9y ago
>"Are their development teams seen as cost centers, or profit centers?"
It's not a matter of opinion, but what the term means. They are cost centers unless they are closing sales (or being billed for about 3x what they cost, which is still way less than sales people will generate, being closer to 10x+ cost).
Best thing any employee can do is find out how their company actually makes money and understand how they align. Unfortunately, the highest business expense is salaries and one of the most important things for most businesses is remaining runway. So there is huge pressure to keep salaries down, particularly in cost centres, which aren't directly extending runway. If it's a service business it can get worse, as the money is typically made on billable hours - creating a perverse incentive to have cheaper and less efficient people to bill out rather than a 10xer (outside a senior business facing role). As long as they are capable and not so bad that they lose the client, it's often more efficient to have cheaper mediocre people from a business point of view.
- scrpn 9y agoHow can a software developer fight against this salary limitation?
- dreamfactored 9y agoBecome a highly sought after specialist for a product offering (e.g. self-driving cars, blockchain, fintech), or get ownership (startup), or go customer facing (particularly if commission involved), or go into technical management on CTO route.
- marcosdumay 9y ago> one of the most important things for most businesses is remaining runway Remaining runway is a measure that only exist for companies in the red. For most business it doesn't even exist.
- dreamfactored 9y agoHow long you can continue operations if sales drops off a cliff is a very important number for every company I've worked at, from startups to big multinationals. Maybe it's less of a consideration for Amazon and Apple but I wouldn't even bet on it there.