Reply #6: A lot like the US economy back in the late 90's...

[ChromeFoundry]

IT workers job hopped between either in-house positions or consulting companies and got on average, an 11% increase with every hop. There were so many positions to fill that the consultancies could demand $150-$300 bill rates per hours. If you could spell PC, you could get a decent job. This is what is happening in India right now. Cost of living is much lower than living in the US. The talent is immature, but the demand is great for positions to be filled.

The economic balance will be reached when salaries increase to a rate of 1/2 of the current US or UK salary. As their salaries increase, their cost of living will follow. Once a break even point is reached, there will be no point in having the work outsourced to that area anymore.. then you will have the mass layoffs that were realized here back in the 2000-2001 period.

Since corporations are greedy, they will seek out other areas in inferior economic status. The cycle will start over and end with the same result.

Now the problem with this model is that you will always have an inferior product in the end. Rarely can a person with 1-3 years experience in a single discipline compete with the quality, security, scalability and re-usability of someone more seasoned with over a decade of experience in multiple languages and platforms.

Would you want to drive a car at 65 mph, with your kid in the back seat, built by someone that never built a car before.. but kinda knows how they work!? And this was the first car they ever built! And they will do it for much less than that guy that has built hundreds of successful cars....

Now, if you were a business owner.. Would you want the software that runs your business written by 5-10 someones with experience... or would you rather have 30-40 inexperienced people building your software and have the project team going through unwieldy turnover rates... because competing projects pay more?

So many people wonder why there is so much identity theft from companies... Would you trust a new college grad to build the lock on your front door of your house, because he took a class on how to make a lock? Or do you think you would go with a solution that was a little more proven? Software has locks. Software is a business vehicle.