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I don't see why they would need to do that. If they open up the doors to that market, the supply greatly outnumbers the demand. You will have equally qualified

I don't see why they would need to do that. If they open up the doors to that market, the supply greatly outnumbers the demand. You will have equally qualified candidates do the same job for WAY less. If you pay a top programmer in the Philippines, say $45k/year, that's 10x more than the average dev. salary in Philippines. It would be like offering $1M in salary to someone in the US. You could pick and choose between the best. You're not gonna get any better candidates if you up that salary to SF-level salaries, like $250k/year. The law of diminishing returns will kick in after a certain level. Comparing wages in city A in country X and city B in country Y is like comparing apples and oranges.

stackbutterflow 4y ago
$45k in the Philippines is not even close to $1M in the US. There's a fallacy to consider that CoL increases linearly. At best it's a fixed offset of $XXk. A few thousands more in rent, a few hundreds more in food, and that's basically it. Real estate is crazy in most capital of the world. Consumer products have a fixed price worldwide, and it's often cheaper in the US, imagine that! Also third world country savings pretty much limit your retirement options to third world countries. You aren't going to retire in the South of France on a third world salary.
- TrackerFF 4y ago
  Point was that $45k (from my very brief googling 20 mins ago) seems to be 10x of average annual programmer salary in the Philippines. I admit I do not know the COL - like purchasing a home in the Philippines, but that could vary very much from country to country. I used Philippines because it's a country with very low salaries. But then again, purchasing a home in SF or NYC is very expensive.