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[nycphp-talk] when PHP outsourcing is not cheap any more

Jayesh Sheth jayeshsh at ceruleansky.com
Wed May 26 12:43:49 EDT 2004


Hello all,

I came across an interesting ad on Google which led me here:
http://php-mysql-developer.com/default.aspx?aff=google&key=php_india_6mo

It seemes a programmer in India who lives outside of where I grew up 
(Pune) is advertising his services on Google. He is the requesting the 
small sum of $500 per week for his services, provided that he is 
guaranteed a minimum of 6 months of employment.

In his FAQ, he has these snippets:

"
What do I seek?
I am looking for a full-time telecommuting job as a PHP/MySQL developer. 
I will work as a WEB-BASED employee to your company , or in other words, 
I will work from my location and communicate with you over the Internet.

[...]

Isn't the salary you are asking for, low?
NO. I live in India where a salary of $500 is sufficient for my needs, 
provided I have a job security.

[...]
What are your other traits?
Intelligent, Sharp, Hard working, tech-savvy, self-managing, honest, 
committed, excellent communication skills.

I hope I have answered some of your questions. Here is MY CHALLENGE :
I can perform the job of TWO developers alone. I can take up projects 
from scratch, design and develop them all by myself. The end result 
would be comparable or BETTER than what a developer with $80,000 annual 
salary would do! GUARANTEED!!
"

I just visited my family in India this spring, and I say with certainty 
that $2000 per month is a HUGE sum in India. Even talented developers 
there are paid $500 - $600 per month.

I have nothing against outsourcing - I think it can be quite useful in 
some cases. But the thing is, it is surprising to find individuals based 
in India marketing themselves with such self-assurance: asking $2000 per 
month and 6 months of *guaranteed* employement and claiming to be able 
to do the work of two people over that period of time.

This curious offer could mean one of several things:
- The demand for outsourced services from India has gone up so much that 
their prices will soon be approaching New York prices
- This guy is marketing himself at prices WAY above standard Indian 
rates and in fact employing other people
- Another, unknown factor is at work

On a side note, I recently posted a help wanted ad on Craigslist for 
some direct (snail) mail marketing work - I got over 100 resumes, some 
from people with MBAs. And from operating in the New York tech market 
for some time now, I know what kind of pressure there is on the price of 
services. Often, if I propose an hourly rate, the sale won't be made or 
will be harder than if I had proposed a fixed bid for a project.

So, putting any resentment or bias aside, can anyone else explain what's 
going on here?

Thanks,

- Jay Sheth
PS: some time ago there was a thread at NYPHP talk which I did not 
bother to respond to; it went something like this (I am exagerating): 
PHP programmers in India are paid $10 per month! OMG! Well, rest assured 
that they are paid a decent amount ($200 - $500 per month), but 
definitely NOT $2000 per month. Even graduates from their top colleges 
(IIT, for example), make about $8000 - $10000 per year.




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