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laxfan, I generally agree about the outsourcing - it's been rough for CS folks
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<p>Not to be unsympathetic, but I personally don't think it's actually been that rough for CS guys. What I see is that the froth of the old dotcom boom has been taken away, but that's probably a good thing. For example, I distinctly remember in those days how guys who hadn't even graduated from high school were nevertheless being offered 6-figure salaries plus, more importantly, huge stock options packages by the dotcoms. One of my old friend's cousins who had dropped out of high school was at one point while still in his early 20's, worth over $10 million from his stock options. {However, it should be said that that turned out to be mostly paper wealth as the dotcom bust eviscerated most of those millions. Still he did manage to buy a killer sportscar with cash. Not bad for a high school dropout. Not bad at all. Heck, he still drives that thing today, and frankly, it's better than my car. } Those were truly crazy days that we will probably never see again. </p>
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Sometimes I wonder though - is this mostly a fashion that will fade eventually? Management books reflect fads, in my opinion, and I wonder if offshoring is a fad that will lose popularity someday.
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<p>Well, I don't know if it's any more of a fad than free trade is a fad. The outsourcing of labor is just another facet of free trade. You want to move the work to wherever it can be done the most productively. </p>
<p>Note, I didn't say the most cheaply. I said the most productively, of which raw cost is simply one component. Many of the most expensive places in the world are also the most productive. For example, why do tech firms not only get founded, but tend to stay in Silicon Valley? The Valley is one of the most expensive places on Earth to do business. So why does Google stay there? Why do Intel, HP, Cisco, Oracle, Adobe, Yahoo, eBay all stay? Why don't they just all relocate to, say, Arkansas where things are cheap? Are they just being dumb? </p>
<p>In fact, not only do these firms not move out of the Valley, lots of entrepreneurs actually come to the Valley with the express intent of hiring engineers and building companies. For example, Facebook wasn't founded in the Valley. Zuckerberg founded the company in Cambridge Mass (in his Harvard dorm room) and then actually relocated to the Valley where he hired hundreds of engineers. Why did he do that? After all, Facebook is a pure Internet company, so it theoretically could be built from anywhere, right? So why didn't he just move the company to rural Mississippi where things are dirt-cheap? Was he just being dumb? He has 1.5 billion reasons to justify what he did, if his net worth is any indication. </p>
<p>It should be noted that Facebook is offering salaries of over $90k just to start. Why do that? Why not just ship all that work to India? Again, is Facebook being dumb? </p>
<p><a href="http://www.techcrunch.com/2008/01/30/stanford-computer-science-grads-getting-95k-offers-from-google/%5B/url%5D">http://www.techcrunch.com/2008/01/30/stanford-computer-science-grads-getting-95k-offers-from-google/</a></p>
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Also policy may change. It would help a lot if they would limit H1B visas awarded for economic (greed?) rather than true need reasons.
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<p>Actually, if anything, I would argue that the H1B problem actually reduces the outsourcing problem (if it is indeed a problem). After all, a guy on a H1B visa is coming to a US location to work, where he will presumably be working on a project with US engineers. If you don't give that guy a visa to come into US, then that guy just stays in his own country, and then it becomes even more likely that the company will simply move the entire project to that other country and then lay off all its US engineers.</p>