Earlier quoted context omitted.
This is correct. Good programmers in India, like good programmers everywhere, cost more than bad programmers. If you would like to hire a decent shop, there are boutiques and larger firms available, but they will charge $40-50/hour, not $15. The problem isn't in the outsourcing, it's treating development like a $15/hour commodity. We all know that it doesn't work that way. The author described paying an hourly rate f…
But there are plenty of good programmers in the US that will work for $50 an hour, which ends up being about $100,000 a year. And if you can have your users, analysts, and programmers in the same building for what it costs to outsource, why outsource?
After corporate/employment type taxes and run of the mill expenses you would not incur as an employee, that's about 80k.
80k for lawyer-hours is not worth it. (2000 billable hours is a common law firm quota)
(To bill 2000 hours a year, you have to work much more like 3-5k hours, really expect to bill more between 1200-1600).