The thing about treating people like interchangeable parts and optimizing for low wages is you also get low skilled people / compromise. (low CoL but why stop t

The thing about treating people like interchangeable parts and optimizing for low wages is you also get low skilled people / compromise. (low CoL but why stop there, why not look for cheaper people) Low skilled people will slow things down, will destroy any quality and advantages you have in your code and then leave as they get better (or stay if they're really crappy) It's worse if they stay as they have a tendency to multiply and get promoted to middle management and crap even more on things... This will only be noticed via the occasional question "why does it take so long when competitors already did this" after a few years. Also, by not keeping talent you lose their knowledge. All for what?, I doubt their wages factor too much in any product. Alternative is to keep good people and pay them well, nurture a culture of excellency and kick out occasional bad hires. That way you get great products and usually good costs as you tend to need fewer people to get things done (even if they cost more) Note: I've seen both types of companies and some in between.