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Uber CEO Wants to Shift More Engineering Jobs to India, Sparking Internal Debate

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Re: Uber CEO Wants to Shift More Engineering Jobs to India, Sparking Internal Debate

#101
post #2

It's hard to ignore the siren song as a business person of comparing your 300k a year engineers to a senior engineer that costs $80k in India (regardless of the potential hidden costs of cultural and time zone differences). This gap should probably narrow as more remote work becomes normal, and more people move out of the Valley and can actually live decently on 150k, rather than 300k.

Just wondering why they don't want to outsource to europe. Here in Germany you will get good engineers for $80k. Or east europe is even cheaper + better cultural fit.

Employees in countries like India are more disposable. In theory if you mean by eastern europe the part that is in EU even that one has some decent labor laws to prevent companies like Uber from firing at will.

I think even Ukraine or Belarus do.

Re: Uber CEO Wants to Shift More Engineering Jobs to India, Sparking Internal Debate

#102
Everybody's talking about the cost side of this and not the benefit: customer intimacy. India is a huge market for many tech companies, and having more on-the-ground presence means they'll innovate in ways more appropriate to the Indian market.

Re: Uber CEO Wants to Shift More Engineering Jobs to India, Sparking Internal Debate

#103
post #2

It's hard to ignore the siren song as a business person of comparing your 300k a year engineers to a senior engineer that costs $80k in India (regardless of the potential hidden costs of cultural and time zone differences). This gap should probably narrow as more remote work becomes normal, and more people move out of the Valley and can actually live decently on 150k, rather than 300k.

This is well-trodden ground as far as discussion around here goes. The common points pro and con always come up: is the quality the same (some say yes, some say no), is co-location or time-zone location important (same parenthetical), what $ amount is ethical to pay, whom is it more ethical to pay (are you a nationalist or a global citizen, etc), what's sustainable, many more etc's. I've decided that's it's a persona…

> We should really divorce politics from this discussion

These decisions have externalities both positive and negative. "Divorcing politics" means ignoring those externalities. It is unlikely to happen.

Re: Uber CEO Wants to Shift More Engineering Jobs to India, Sparking Internal Debate

#104

Earlier quoted context omitted.

"Assuming you can get the same (or similar) talent in India instead of the US" I am not aware of anyone who has succeeded at this in practice. Do you know anyone?

I don't know, that's why I'm asking. I have worked at a startup that used a firm in Ukraine which actually did really great work, however. It was perhaps more expensive than India, but still much cheaper than the US.

Much cheaper than Silicon Valley you mean.

Re: Uber CEO Wants to Shift More Engineering Jobs to India, Sparking Internal Debate

#105

I don't think moving tech labor form US workers to Indian workers will have the desired effect that corporate decision makers are hoping for. For one, good tech workers are hard to find anywhere. A candidate needs a range of attributes to be effective at this type of work. That type of talent is hard enough to find in the western world, it will likely be just as hard to find in the east. Two, Indian tech labor isn't…

Maybe Indian tech labor isn't that cheap. But Silicon Valley tech labor is very expensive (perhaps overpriced!). Maybe the latter is the key factor...

I would argue there is no such thing as overpriced labor when its the market that sets the price. You will never get a Mercedes for the price of a Honda.

So be skeptical when a politician or mega corp manager utters the words "labor shortage" - there is no such thing.

Re: Uber CEO Wants to Shift More Engineering Jobs to India, Sparking Internal Debate

#106
post #2

It's hard to ignore the siren song as a business person of comparing your 300k a year engineers to a senior engineer that costs $80k in India (regardless of the potential hidden costs of cultural and time zone differences). This gap should probably narrow as more remote work becomes normal, and more people move out of the Valley and can actually live decently on 150k, rather than 300k.

You can live decently in the valley on a lot less than 300k. Speaking from experience, even 90k is perfectly comfortable. Based on the salaries of my friends in SF, $150k is a very reasonable salary that allows a fantastic lifestyle.

Probably single with no family to support, living in a shoebox, with no car. Sure if you want to spend 60% of your salary on "housing" in SF, $150K is perfectly fine...

Re: Uber CEO Wants to Shift More Engineering Jobs to India, Sparking Internal Debate

#107
post #2

It's hard to ignore the siren song as a business person of comparing your 300k a year engineers to a senior engineer that costs $80k in India (regardless of the potential hidden costs of cultural and time zone differences). This gap should probably narrow as more remote work becomes normal, and more people move out of the Valley and can actually live decently on 150k, rather than 300k.

You can live decently in the valley on a lot less than 300k. Speaking from experience, even 90k is perfectly comfortable. Based on the salaries of my friends in SF, $150k is a very reasonable salary that allows a fantastic lifestyle.

With mortgage payments in the $5k range, I highly doubt your assessment. Maybe your definition of comfortable is different than mine, or you don’t have children.

Re: Uber CEO Wants to Shift More Engineering Jobs to India, Sparking Internal Debate

#108
20 cents on the dollar is what they have on their minds. But when you add in the right layer of management, factor in productivity gaps due to time zone differences and lack of business context, etc. You are actually paying 80 cents on a dollar. Tech executives know this but they are unable to persuade their business counterparts.

Re: Uber CEO Wants to Shift More Engineering Jobs to India, Sparking Internal Debate

#109
post #46
post #29

Earlier quoted context omitted.

Race to the bottom. No rewards for excellence, why bother studying/working hard when all you get is 80k? That's basically a life-time mortgage if you want to own a house.

In some places houses cost less than $150k..

Would you live/work in Rust Belt or Appalachia? I've also heard many houses in Detroit go for $1. Sounds great, right?

Re: Uber CEO Wants to Shift More Engineering Jobs to India, Sparking Internal Debate

#110
I worked at "mega bank" in London. They did this.

For two years.

And moved all the jobs back again.

The time-zones didn't work and communication was poor. Ultimately it cost more money than, say, off-shoring to an East European country (which they did instead).

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