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As in all things, the answer is supply and demand. The demand for these services mostly comes from the West, and there is a big advantage to local workers. So
by swatow 12y ago
As in all things, the answer is supply and demand.
The demand for these services mostly comes from the West, and there is a big advantage to local workers. So assuming there is a large supply of skilled data scientists in India and Ukraine, but not the demand, then they can't charge higher wages.
Furthermore, if these barriers could be broken down, and there was no longer an advantage to being local, then we would expect the price of Western and other workers to equalize, but the final wage would be somewhere in between the current Indian wage and the current Western wage.