3 ms·

It’s not about cost per se but competitive cost. If your business’s direct completion can ship the same product 3x cheaper then your business is toast holding o

• alephnerd 2y ago
  It isn't about the "financial cost" from a competitive standpoint - it's about scalability. Costs savings are usually around 20-40% of what you would spend in the US, so not that significant in an industry with 80-90% profit margins baked in. The real value comes from being able to scale out and add additional teams to speed up delivery of features. This is the double edged sword of 100% remote work - if you devalue in-person relationships, then there's no reason to value a local talent pool.
  • nextworddev 2y ago
    the future will be some hub and spokes model to address your concern where core infra is on shore but less critical teams and back office is distributed. Btw this has been already been happening but might go from 30% penetration to 80% penetration
    • alephnerd 2y ago
      > where core infra is on shore but less critical teams and back office is distributed Nowadays, even core infra and IP is being developed and PMed abroad depending on the segment of the tech industry you work in. Much of the cybersecurity industry is notable in this regard, and a lot of the newish (2015 and later) startups in Enterprise SaaS have adopted this kind of a model organically by treating all employees globally equally after a fair CoL adjustment Google Pay and Google Drive+Docs are notable product lines that was almost entirely developed by engineering abroad.