[ajug-members] Wipro coming to Atlanta

[Rick Reumann]

On 8/2/07, Dean H. Saxe <dean at fullfrontalnerdity.com> wrote:
>
> Couldn't have said it better myself.
> One last thought:  You get what you pay for.  The difference between a
> developer earning 80k and 100k is not $20k in salary, its a difference in
> productivity levels! A simple, nonscientific, completely pulled out of my
> backside analogy would be a highly qualified developer commanding a 100k
> salary can do twice the work of a less qualified developer making 80k.
>  Which one would you prefer on your team?  Which is the better value to the
> company?
>

Most of us would all agree with this, but my concern is whether company
big-wigs that pay the bills see it this way as well. I'm not convinced that
they will continue to see quality developers and architects continuing to be
worth the larger salary. Many of these companies have the mentality that, in
a worst case scenario, throwing 4 guys at 25K a year will be the same as 1
guy at 100K. Maybe not all, but some definitely do.

The globalization concept sure does bring up debate that's for sure:) I have
mixed feelings about it. If it can save a company a ton of money using
outsourced talent, it usually makes that company more competitive by
offering lower prices to its consumers - us - and therefore we actually all
benefit. The common analogy of course is would you rather pay 100 bucks for
a pair of sneakers made in the U.S. or 20 bucks for ones made overseas? Even
the 20 dollar mouse I buy at Walmart would be a lot more expensive if all
the components had to be manufactured on U.S. soil. This analogy (in my
opinion) breaks down a bit when it comes to IT since I believe developing
software is a much more dynamic process then simply stamping out leather
parts on a tennis shoe on an assembly line.

The trend now seems to be that there are higher payed foreign contractors
that work on-site and are supposed to understand the business and are the
architect types. Beneath them are usually four or five outsourced
contractors working overseas for a cheap rate. Whether this model will work
in the long run, I'm not sure.

A possibly more alarming trend I've also been seeing is where part of a
company actually moves over to India to work directly with the developers
there. I can see most of the larger companies going more to this model. You
send over a decent group of BAs and IT managers to work directly with the
developers overseas. The time differential creates some problems, but other
that I think the model could work. I'm not positive it will, just throwing
it out there. I doubt the small to mid-size companies would have the
resources for this approach.
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