[dba-Tech] FYI: Friday technical reading: Hitting the highnotes...

John W. Colby jwcolby at colbyconsulting.com
Sat Aug 6 09:36:56 CDT 2005


Shamil,

I do apologize, of course "reasonably priced overseas" is true, however
"reasonably priced overseas" to someone looking for offshore work is "as low
as I can get".  They don't go overseas to get a price close to what they get
here.  Let me give you a (painfully) real example.

I worked for a company here in Connecticut that made screws.  I worked for
him for about 2 years and moved him from a POS non-relational thing designed
by the stock room guy to a fully relational, complex database for tracking
most of the phases of his business.  We parted ways.

A year or so later he came back and asked me to move the whole thing to SQL
Server.  I told him it would take me 3 or 4 months to do that.  The system
was designed (by me) using all the tricks that Access allows but which don't
necessarily port easily, and there was significant work to be done.  

My quote was about 12k to 15k.  He thought that was unreasonable and went
away.  I discovered that he had contracted with an Indian firm (in India) to
supply 3 programmers, was quoted 3 or 4 months (with 3 programmers working
on it).  Because of their wages, the "total cost of the project" would be
significantly less than my quote, even with 3 programmers.  He took it.  A
YEAR later it wasn't finished, he was flying to India to meet with the team
etc. etc.

A YEAR LATER three programmers were unable to do what I estimate would have
taken me 3 months.  Given, I wrote the original.  I knew it inside and out.
I knew how to attack the problem to minimize the work involved.

As far as I can estimate, he has probably spent 50K and it still isn't done.
I have no sympathy.

The moral of this story is that the business owner only saw one thing - a
firm that claimed experience capable of doing the job, who would throw 3
guys at the problem for 50% of my hourly rate.  He got what he paid for.
Unfortunately this is the mindset you (and I) fight against.

It is not my intention to discourage you, only to say what I see.  It is my
belief that as long as there are wage disparities of 5x or 10x, jobs will
move to that lower cost area.  It is particularly true in manual labor where
all that matters are simple skills.  In the case of software, India and
Russia have excelled in attracting this kind of work because of their
educational systems ability to train workers that can do this stuff, and at
least in India's case, because they (kind of) speak the same language
(English).

I am emotionally torn with the whole situation.  Russia and India need the
work, need the wages, need the currency.  So do I.  

It is my belief that the only way that jobs will quit moving is to have wage
parity between all countries around the world.  That has so far never been
the case, and I see no sign that it (wage parity) will be the case any time
in the next century, especially with China coming on line with BILLIONS of
laborers.  I do think that it is slooooowly happening though.  In the free
market system, work creates wealth which creates more work which creates
more wealth - an endless cycle.  As wealth goes up, so do wages.  India is
beginning to see increased labor costs as they pull money out of the more
affluent countries into their economy, the laborers start to ask for higher
wages etc.  It takes time, but it does happen.  Look at "made in Japan".
The cost of labor in Japan is now so high that the jobs moved on.

I wish you well Shamil.  You know that I admire you greatly, I hold you in
high esteem and I pray that you find the means to keep your family in a
style appropriate with your obvious abilities.  Likewise, I pray the same
thing for myself.  <grin>

John W. Colby
www.ColbyConsulting.com 

Contribute your unused CPU cycles to a good cause:
http://folding.stanford.edu/

-----Original Message-----
From: dba-tech-bounces at databaseadvisors.com
[mailto:dba-tech-bounces at databaseadvisors.com] On Behalf Of Shamil
Salakhetdinov
Sent: Saturday, August 06, 2005 6:46 AM
To: Discussion of Hardware and Software issues
Subject: Re: [dba-Tech] FYI: Friday technical reading: Hitting the
highnotes...


<<<
 Unfortunately that does not bode
 well for your "high priced overseas" idea either.
>>>
My(?) idea is not "high priced overseas" but "reasonably priced overseas"
against what I see and what I'd call "abusive priced overseas" with real
money going to all kinds of mediators and managers controlling "semi-slave
but effective(?) overseas programmers workforce"...

Hopefully Andy will not find this thread as off-topic because the rates we
are working at as software programmers professionals all over the World -
this question is really a technical question in the sense that reasonable
fair rates create fair competition and what happens now  as I see it - this
is more using advantages of developed world to abuse developing countries
than to give the people of developing countries real opportunities and
involve them in free Worldwide competition where only experience and talent
what really matters. I know that sounds idealistic, sorry (I know Hindman
will not agree - I understand his position).

So I'm for reasonably priced overseas or Worldwide programmers market, which
I'm sure will create a lot of new opportunities to you there and which will
not "suck and steal" some of your jobs from there and from here - will not
"leak"(that much) the most talented people grown and educated here as it
happens now...

I do believe this fair market will be created sooner or later and  I wish it
happened sooner for me to have opportunity to work in it.... And I wanted to
invite you to work on this market foundations together for mutual advantage
for us and for the coming generations...( I know it sounds pathetic, sorry)

Shamil





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