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It's not offshoring in the same way as it was 20 years ago. They are remote employees, they go through the same hiring process as everyone else but at 50% the p
by readyforbrunch 2y ago
It's not offshoring in the same way as it was 20 years ago. They are remote employees, they go through the same hiring process as everyone else but at 50% the price. And remote work is much, much more accessible.
Remote workers located in HCOL areas of US and Europe have shot themselves in the foot. I see it especially in the market for native mobile development in Western Europe. Salaries decreasing, freelance rates dropping. There is plenty of work, but positions are filled with workers living in the South or East.
As hiring manager, if I'm going to hire someone who works remote, I will pick the person with the same skillset and experience at half the cost.
- turtlebits 2y agoThe benefit of living in a HCOL area isn't just salary. If you own property you've been getting huge gains in value.
- 01HNNWZ0MV43FF 2y agoThat's a loophole, though, hopefully it'll close in my lifetime
- zlurker 2y agoTimezones still play a huge part here as well. My team has several engineers who are at par compared to the rest of the team but they're a pain to work with due to a 10 Hour time difference.They may be paid 50% less but they're 50% harder to work with to no real fault of their own
- http-teapot 2y agoEngineers in LATAM are increasingly popular for that reason; the timezone difference is about four hours from PST and about one hour from EST.
- alephnerd 2y ago> Engineers in LATAM are increasingly popular It's because of the tax holiday Costa Rica is giving [0][1][2], and VMWare's acquisition by Broadcom (they had a massive engineering campus in San Jose, Costa Rica) leaving a lot of Support Engineers and C++ Engineers on the market. Czechia, Romania, and Poland did the same thing in the 2010s, Israel and India in the 2000s, and Taiwan and South Korea (in electronics) in the 1990s. [0] - https://www.thegreenparkfz.com/ https://www.thegreenparkfz.com/ [1] - https://afz.cr/v5/en_us/about-us/ https://afz.cr/v5/en_us/about-us/ [2] - https://www.procomer.com/wp-content/uploads/Guia-Zonas-Francas-Ing-dic-2021.pdf https://www.procomer.com/wp-content/uploads/Guia-Zonas-Franc...
- 486sx33 2y ago50% of the price is quite nieve It’s much less than that. No health care no benefits no pension. No employer side costs, currency conversion to your advantage. 15-20 % is the number that makes it worth it. Bell Canada achieved under 10% in the early 00’s offshoring support to India
- j45 2y ago50% is often the number talked about in public while its much higher in reality as you are saying.
- readyforbrunch 2y agoNumbers I work with are ~45k for a senior software engineer in Hungary, Spain, Italy, Greece vs ~85k in France, Germany, the Netherlands. Fully loaded cost (tax, insurance) adds about 20-30% on top in West. South and East are considerably less. You can find even cheaper staff but you're still competing for talent. I can pay someone in South or East a premium against their market and still save big compared to an average salary in West. This is ignoring any other benefits you have as employer in South and East. Try to fire or lay someone off in France - it'll cost you.
- colinb 2y agoI think your numbers for France are off. When I tried to hire there last year the burden of employer taxes and levies was ~70%. That wasn’t the part that killed the deal though. My employer’s real worry was around how hard they believe it to be to fire someone who isn’t doing well in France.
- swader999 2y agoSaw Suncor try the offshore to India on their major app around 2014. Commit history a few years later barely changed.