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> In fact, after a lot of offshoring, some companies brang back the jobs in the country because the friction were annihilating the cost gains That's because th
by achow 6y ago
> In fact, after a lot of offshoring, some companies brang back the jobs in the country because the friction were annihilating the cost gains
That's because the offshore companies have engineers who are paid probably ~1/25th of the salary than the 'in shore' ones.
If the salary parity is 1:1 (or adjusted for cost of living), then there would not be any problems with 'off shoring'. The evidence is in the overseas R&D Centers of USA product companies that are already prospering in places like India, East-Europe, etc. These companies are in the league of Microsoft, Google, Amazon, Adobe, Intuit, Oracle,.. and then some from well funded valley startups. The 'culture' or 'soft skills' does not seem to be issue as these organizations are making global products.
And above is actually happening now with employees who are getting much less salary (because they are CoL adjusted) even though output and talent are at par. These employees are working out of these locations because of family reasons, or waiting for the right time to emigrate (kids, school, college etc.).
When the salary parity is at 1:1 in any location, for many (if not all) valley area or major USA metro area may not hold any more charm.