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If you pay a dev as much as in Germany, how are the supposed to offer cheaper services if also the agency takes a bige cut? No one would nearshore work If it's
by chefkoch 5y ago
If you pay a dev as much as in Germany, how are the supposed to offer cheaper services if also the agency takes a bige cut?
No one would nearshore work If it's not cheaper then at home.
- anovikov 5y agoBecause they outsource to the U.S., and for the U.S. customer there is no difference between Germany or Ukraine. In Ukraine they also pay a lot less (if any) taxes than they do in Germany. Plus, you can exploit people more in Ukraine for sure (they are happy anyway because they routinely get 20x the median income in their area, by the age of 40 it's typical to be independently rich and exit active work). And no, these services are not 'cheaper' - people who want it cheaper, hire Indian companies.
- chefkoch 5y agoThen why hire them instead of local devs?
- anovikov 5y agoLocal devs or local dev company? In which country? In Germany they just won't find one. There are few good devs and almost no good outsourcers. Way more in Ukraine and there is an established ecosystem - there are even "accelerators" and "incubators" for outsourcer companies. In the U.S.? Because U.S. companies will never do actual coding in the U.S. - they only have U.S. front offices. Many of these "local" companies are actually Ukrainian, with a few guys in the Valley and 500 in Kharkiv. As for local devs, then well, of course reason is the same as why dev companies exist at all: clients don't know how to manage the project or properly hire devs.