Live data from Hacker News

Uber wants to cut costs by shifting its engineering to India

businessinsider.in

41–50 of 108 posts

Re: Uber wants to cut costs by shifting its engineering to India

#41
post #8
post #6

How does the SV crowd here see this? Considering that even entry web devs with only bootcamp experience often enough make >$100,000, outsourcing to India is a good idea, economically speaking. Could a successful outsourcing project by Uber threaten all SV tech jobs?

No. To get the same amount of quality in india you’ll be paying roughly the same - and then have cultural and timezone barriers.

> paying roughly the same

Any references for that?

Re: Uber wants to cut costs by shifting its engineering to India

#42
post #36

A better option: shift it's engineering to everywhere else in America , and go full-remote, but pay less. Imagine if Uber told it's developers: we're cutting salaries by 40%- but you are now full-remote, and we want you to live somewhere less expensive than SV. Spread out across America! A lot of folks would quit. But some would see the incredible opportunity. In that situation, I'd move somewhere like Chattanooga TN…

I’m genuinely curious why companies don’t do this? It seems like a great deal, many cities in US are great with decent cost of living. I used to live in Kansas before & home ownership is cheaper and time zones are usually better. Maybe the total cost of hire is still higher? idk

Re: Uber wants to cut costs by shifting its engineering to India

#43
post #36

A better option: shift it's engineering to everywhere else in America , and go full-remote, but pay less. Imagine if Uber told it's developers: we're cutting salaries by 40%- but you are now full-remote, and we want you to live somewhere less expensive than SV. Spread out across America! A lot of folks would quit. But some would see the incredible opportunity. In that situation, I'd move somewhere like Chattanooga TN…

This is not as good as it sounds just because it works for you.

People don't love moving, and they usually move for better work opportunities, not to accomodate a pay cut at their current job. Moving to a lower cost of living area also means moving to an area with less opportunities, and not to mention moving away from your social circles and the life you have established somewhere.

The only way I can see this working if uber started hiring bew remote engineers in the US, but asking their current ones to move from SF so they can take a pay cut?

Re: Uber wants to cut costs by shifting its engineering to India

#44

Shift innovation to India? Have they seen India's track record on tech innovation? The education system there does not produce very innovative people or engineers. However they are great at following exact instructions so I'm sure that part of engineering team will do well

That is incorrect. The tech innovation track is bad because most of talented indians join mostly Trading based family business.

Most of Agarwals,Jains,Brahmin are mostly businessman.(most indian big startup-enterprises are from this community.ex.Paytm,Reliance,Birla,Flipkart,OYO,OLA)

for example,I am jain(Baniya). I am having masters degree in IT(2013),had offer from US based MDM startup still I chose trading. Even now I spend 20 hours a week in IT work(hobby),from node projects,System drivers to my trading business specific IOT devices and even DIY Electronics project. But I dont find myself in IT business in near future.

My cousin who is also master degree holder in IT, He runs successful family owned supermarket with 15000+skus. His store is more advanced in tech then bigger competitors which I bet will earn him fruit in next 3-4 years.

Its personal choice not lack of innovation or talent.

Re: Uber wants to cut costs by shifting its engineering to India

#45

Shift innovation to India? Have they seen India's track record on tech innovation? The education system there does not produce very innovative people or engineers. However they are great at following exact instructions so I'm sure that part of engineering team will do well

I doubt if there's any region in the world that comes close to SV when it comes to innovation.

Indian engineers, at least the ones hired from the top institutes, can certainly innovate if they are provided the right environment.

Re: Uber wants to cut costs by shifting its engineering to India

#46
post #36

A better option: shift it's engineering to everywhere else in America , and go full-remote, but pay less. Imagine if Uber told it's developers: we're cutting salaries by 40%- but you are now full-remote, and we want you to live somewhere less expensive than SV. Spread out across America! A lot of folks would quit. But some would see the incredible opportunity. In that situation, I'd move somewhere like Chattanooga TN…

I drove through Chattanooga earlier this week during a cross country move. Gorgeous, underrated part of the country.

Close to Nashville, Huntsville (huge aerospace & engineering base has fiber) & Atlanta.

Pretty sure they also have municipal fiber.

Re: Uber wants to cut costs by shifting its engineering to India

#47
post #36

A better option: shift it's engineering to everywhere else in America , and go full-remote, but pay less. Imagine if Uber told it's developers: we're cutting salaries by 40%- but you are now full-remote, and we want you to live somewhere less expensive than SV. Spread out across America! A lot of folks would quit. But some would see the incredible opportunity. In that situation, I'd move somewhere like Chattanooga TN…

> In that situation, I'd move somewhere like Chattanooga TN- average rent at around $1000/month, vs SF's $3000-5000. Food is cheaper too.

That rent difference turns out to be $24000-$48000 a year. If salaries are cut by 40%, it would only make economic sense to move if you earned less than $60000-$120000 a year (not accounting for cheaper food).

Whether the lifestyle differences would be positive or negative is highly dependent on the individual. And that's without getting into other opportunities available if you stay in SF.

Re: Uber wants to cut costs by shifting its engineering to India

#49
post #42
post #36

A better option: shift it's engineering to everywhere else in America , and go full-remote, but pay less. Imagine if Uber told it's developers: we're cutting salaries by 40%- but you are now full-remote, and we want you to live somewhere less expensive than SV. Spread out across America! A lot of folks would quit. But some would see the incredible opportunity. In that situation, I'd move somewhere like Chattanooga TN…

I’m genuinely curious why companies don’t do this? It seems like a great deal, many cities in US are great with decent cost of living. I used to live in Kansas before & home ownership is cheaper and time zones are usually better. Maybe the total cost of hire is still higher? idk

Because the cost of living delta is mostly just home ownership. Yes, that trickles down to somewhat higher prices for contractors, child care, etc. but it's mostly rents and houses. So $50K/year say is probably a pretty reasonable cost of living adjustment between the Bay Area and most reasonable low CoL areas. Cut more than that and you're also cuttings savings and spending power for things that are priced similarly across the continental US.
Post reply on HN