Re: delphi coders paid less?
- From: "Captain Jake" <jake@[nospam]jsnewsreader.com>
- Date: Wed, 10 Jan 2007 21:07:18 -0600
David S <noway@xxxxxxxxx> wrote in message <45a57e1a$1@xxxxxxxxxxxxxxxxxxxxxx>
This is a multi-national corporation. If they wanted to
hire "remote workers", they'd hire them from some place that's
a lot less expensive than in America!
They already have several facilities in India, South America,
Europe, and Asia. Telecommuting is not the issue.
What I'm hearing from a lot of you guys is that you'd like the
work, but you want to get it on your own terms. Most of you
appear to be from more expensive places -- eg, the guy who
wants $200/hr. Remember, if you're looking for "remote work",
you're competing youself as an individual against a whole team
of guys from Bangalore. What would you choose if it was YOUR
money?
FWIW, this company is NOT based in the US. Their American
offices are considered "off-shore" to the main company. If it
WERE a purely economic decision, this entire project would get
moved to India tomorrow.
Typical CorporateThink. If it were a purely ECONOMIC decision, individuals
would be hired on the basis of their productivity, and the required
arrangements to utilize their skills would adjust to that. Studies have shown
that there is often up to a 100 to 1 difference in productivity between the
worst and best programmers, but I have yet to see the accounting done by all
those self-styled geniuses in the accounting departments of many corporations
even begin to take this into account. They, in their perfect imitation of
clueless clowns, go like moths to the lowest cost, stupidly thinking that cost
minimization is the same as profit-maximization. You really think that the
programmer charging the lowest price is going to be the most economical? If so,
then I have a bridge in Brooklyn to sell you. (Fortunately for the good
developers there are enough exceptions to this rule, who see the difference
between accounting costs and economic costs.)
Intellectual capital is not captive to anybody's misconceptions of total cost.
If you pay 60$/hr for a great programmer, you are most likely going to save
money over the $15/hr programmer from Absurdistan. Why? Because the great
programmer is going to get about ten times as much stuff done properly in any
given time period than the $15/hr programmer. Yes you pay 4 times as much to
get ten times as much. Any fourth grader could see how this is a great bargain,
but then that probably explains why it escapes many corporate executives.
Intellectual capital is highly heterogenous, rendering hourly rates nearly
irrelevant as guides to economic value. This is even more the case when you are
talking about a culture that is quite different than the customers and the
business analysts in the firm. What good does it do your firm if you saved
$45/hr just to end up with a piece of software that perfectly matches a
misunderstanding of the user requirements?
It is precisely because so many top programmers see nonsense like you spouted
above that so many of the best programmers remove themselves from the market.
Every time another luminary expounds on rates as the deciding factor, another
nail is driven into the labor market in which those luminaries search for
talent.
The intelligent firms know how to sift the wheat from the chaff and recognize
those prospects that can bring good value to their business process, and they
offer what it takes to get that talent, as long as the expected revenues exceed
the expects costs. Why do you think any firms pay more than the minimum rates
asked in the market? Simple, they know the difference between cost minimization
and profit maximization. Just because you got programmers at $15/hr instead of
$50/hr doesn't mean you are spending your money wisely.
As for the luminary that talked about $200/hr, I don't know what planet he is
inhabiting, but nobody is paying that, and nobody is seriously asking that.
Delphi rates are $35-60/hr here in the US, depending on experience and the
needs of the client.
Every developer on this planet is always competing against every other
developer on this planet, not just a team from Bangalore, no matter if they are
on-site or remote. And by the way, "remote" doesn't mean the developer never
comes in for meetings or travels to client sites. It just means that there is
no cost for a cube on his behalf in the corporate office and no pollution in
the air from his commute.
--
***Free Your Mind***
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