RE: project bidding sites

Hi,

My business is supplying clients with contract help. The outsourcing
phenomena is the number one impediment the Silicon Valley contractor
market recovery. I estimate that a full 60% of possible business goes
over seas. I don't like to say offshore because it sounds like it's
really still here...

Good news is that some companies are bringing back teams from India
because wage inflation have reduced the perceived savings and that
management costs to HIT DEADLINES is greatly hampered by both distance
and work culture.

The other good thing is that other low cost, high intellect locations
like Russia, China, SE Asia, and Eastern Europe are proving to be less
attractive. I think this is mainly due to the phenomena of a
disproportionate number of Indian origin managers, particularly in the
Silicon Valley. Not only is/was there cheap labor, there were managers
ALREADY adept with the ins and outs of the country and culture.

Wow, I got to use my Poli Sci/Social Science background on this one
*grin*

All is not doom and gloom folks. True pricing is hard pressed, but
anyone who thinks 1998 to 2000 rates were normal is just fooling
themselves. Many of us were marveling at how nuts the spending was... At
least now there is a market to complain about where as a couple years
ago there was no market at all.

-----Original Message-----
From: Wiggins d'Anconia [mailto:[email protected]] 
Sent: Tuesday, July 12, 2005 8:46 AM
To: [email protected]
Subject: Re: project bidding sites

Terrence Brannon wrote:
> [email protected] (Anthony) writes:
> 
> 
>> all the projects that I would
>>charge $500+ for were being bid at $50, by people in russia and india.
> 
> 
> On slahsdot it was mentioned that over time, as India becomes more 
> wealthy, the ability to underbid will decrease and Americans/1st 
> worlders will be on a level palying field once again.
> 
> 

Sure, that's basic market economics and wealth transfer theory. Of
course, economic theory is great until you try to apply it to the real
world. I wish I could call my mortgage company and tell them "over
*some* time horizon I will definitely pay them back" ;-)....

Of course the problem with that is that India isn't the last 3rd world
domain, and once we reach that point there is China, the undeveloped
part of southeast asia, a whole bunch of russia, and most of africa to
worry about (not to mention the midwest ;-))....

Not trying to sound bitter or trying to flame, just putting my hard
earned Economics degree to good use finally ;-), and I do agree with the
statement. Just pointing out that the problem is with the time horizon,
there is none given, this seriously could take 20 years and that is just
for India. By the time the 3rd world catches up, I seriously doubt we
are going to be concerned with losing jobs to the 3rd world.

Just my couple of non-cents,

http://danconia.org