Originally posted by Mike Gershman: The same thing happened with Japanese automobile manufacturers.
The race to the bottom (salary-wise) has no finish line.
However, the best Indian programmers have nothing to fear. The 15:1 ratio in productivity between good programmers and average programmers is more important than salary differentials.
The Chinese programming industry will say its best programmers are roughly comparable to India's best but at a fraction of the cost. The "best" in any country are not safe since they are competing against the "best" in other countries. The decision makers have no way of really knowing who is really best and may not really care. What they are care about is a decent job done at a very cheap rate. Once China can show it can do a decent job, wages will drop. Anyone care to bet that China will not eventually develop a decent programming industry?
There was a Dilbert strip not terribly long ago where it turned out that Dilbert's company had outsourced some work, and the outsourcer had subcontracted to the lowest bidder, and that subcontractor had subcontracted in turn, and at the bottom of the chain, the lowest bidder was Dilbert's own company, so that they were paying for the privilege of doing their own work at a pittance. It was quite funny.
There was a Dilbert strip not terribly long ago where it turned out that Dilbert's company had outsourced some work, and the outsourcer had subcontracted to the lowest bidder, ...
Exactly what I thought at once, exactly the same recall. Here is the original text (I hope cartoon's reproduction copyright won't apply in such case : Dilbert said "we outsourced our customer-service function to india a few years ago, who subcontracted the job to mexico, who subcontracted to vietnam, who subcontracted to philippines, who subcontracted to us who are the lowest cost provider for we lie about our hold times. In summary we pay ourselves to hose ourselves... Are you thinking what I am thinking (hoping a "stop outsoursing") ?". Pointy haired boss' answer was "raise our prices ?".
It was quite funny.
No, it was VERY funny !
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