Are the bigger tech companies outsourcing?

Vistaprint / Eng
MBCGA

VistaprintEng

PRE
Cimpress
MBCGAmore
Mar 8 23 Comments

I guess not really outsourcing, but trying to shift development out of America and into cheaper countries and get rid of positions in America or other expensive countries.

Anytime someone leaves one of the software teams and we try to get a backfill management just says "we can get an entire team in India for that one American salary". It's getting to the point that in a year or two there's hardly going to be anyone left in the same office that all the product team is in. Are bigger tech companies experiencing the same phenomenon or is this only happening with slower growth smaller tech companies?

I can see expanding to other locations because you just can't find the talent where you are, but for us this is never the case, it's solely about dollars and cents, which seems crazy considering developers are the ones bringing so much value to the business.

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TOP 23 Comments
  • OpenTable Meliodas
    Only in dying companies that put cost cutting before quality.
    Mar 82
    • Amazon lUYG55
      I agree to disagree, just because it’s going out of America does not mean the quality is any lower.

      Countries like China India Korea .... , education is so competitive. You get to be the top creamy layer to even study a degree you like. That’s the reason you see many Asians in tech industries.
      Mar 8
    • Vistaprint / Eng
      MBCGA

      VistaprintEng

      PRE
      Cimpress
      MBCGAmore
      OP
      I don't think that OpenTable is saying the quality is lower in those countries, I think he/she is saying if the reason you're going to those countries is to save money you're doing it for the wrong reason.
      Mar 8
  • Tableau / Engstthompson
    If by outsourcing you mean ordering their business cards from Vistaprint, no. Otherwise, yes.
    Mar 81
    • Vistaprint / Eng
      MBCGA

      VistaprintEng

      PRE
      Cimpress
      MBCGAmore
      OP
      You actually know where your business cards come from? Impressive. Still might come from us though depending on who you use.
      Mar 8
  • Amazon fckyo
    Entire team in India for that 1 American salary? You need some fact check son. Tech companies in India pay anything between $45k to $65k to SDE2. An SDM would make 1.5x of that. So every 1 US SDE you can hire 3 SDE in India. Not exactly an entire team.
    Mar 83
    • Amazon JoshO1995
      My team has had just 3 sdes at some points :(
      Mar 8
    • Vistaprint / Eng
      MBCGA

      VistaprintEng

      PRE
      Cimpress
      MBCGAmore
      OP
      Yeah, I find that hard to believe as well, not to mention the efficiency loss that you have by people waiting 2 days for a communication cycle to complete. It's hard to argue too much with your manager though when they're the ones who are actually paying everybody.
      Mar 8
    • Microsoft 4;2@&fda
      A team of 3 SDE's.
      Mar 8
  • New / MgmtVSwf01
    All public companies are optimizing for profit. If it means outsourcing then that's what's going to happen. Those of us in dev are too cocky to realize it but we are often viewed as a cost center not a value creator.
    Mar 82
    • Amazon / Engcayde
      This is true at a lot of companies.
      All it would take is the wrong CFO at a FAANG, and I think someday the same could happen there too.
      Mar 8
    • Vistaprint / Eng
      MBCGA

      VistaprintEng

      PRE
      Cimpress
      MBCGAmore
      OP
      Actually most public companies don't optimize for profit, they optimized for growth and revenue. Now profitable revenue is a way to pay for growth, but profit really isn't the goal, that's why most publicly traded companies don't pay a dividend.
      Mar 8
  • Microsoft innocent
    Only non tech companies outsource their tech and IT departments because they don't care a shit about tech. Tech companies only outsource support engineers and customer service roles because they need representatives who speak local languages. Core development still happens in the US.
    Mar 81
    • Vistaprint / Eng
      MBCGA

      VistaprintEng

      PRE
      Cimpress
      MBCGAmore
      OP
      It actually started with tech support and IT, then an executive thought "hmmmm, if we can do that..."

      Just wanted to make sure that if I went to Microsoft, Amazon, etc I wouldn't deal with the same bs.
      Mar 8
  • Amazon / Engcayde
    Definitely not. We have a lot of the opposite, actually. Lots of talent coming here FROM those cheaper salary countries, often as an internal transfer, even.
    Mar 82
    • Amazon lUYG55
      You also forgot the fact that they are experienced amazon employees and not fresh hires
      Mar 8
    • Amazon / Engcayde
      No, that's exactly my point. OP says outsourcing is happening to save money. If Amazon wanted to do this, they wouldn't move people doing some work so that person can make 3x doing similar work.
      Mar 8
  • Tektronix / Sales
    BlueBerd

    TektronixSales

    PRE
    Oracle
    BlueBerdmore
    Yes they are!
    Mar 81
    • Tektronix / Sales
      BlueBerd

      TektronixSales

      PRE
      Oracle
      BlueBerdmore
      They restructured the sales team I was on at Oracle in 2017 and sent 1/2 the department overseas for cheaper labor.
      Mar 8
  • New
    EMVH32

    New

    PRE
    Amazon
    EMVH32more
    Nope. All the teams I’m on are insourcing: bringing contractor work in house and overseas work back in house too. It’s great!
    Mar 120
  • Amazon / EngjNeo42
    Welcome to the 1990s! The times they are a changing. I can feel it blowing in the wind.
    Mar 80
  • Amazon / Engmdiiytedhk
    It's the same reason why most of the stuff you buy is made in China
    Mar 80
  • AIG / Product
    Raging

    AIGProduct

    PRE
    Deloitte Digital
    BIO
    Counseling CxOs for AI-first strategy !
    Ragingmore
    Yes
    Mar 80

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