IBM's Profit May Rise as Shifting Jobs to India Reduces Costs 1793
Kamal R. Prasad
That's pretty unlikely. More like $30 an hour for entry level, $50 for experienced ( fulltime employee W2, salary outgo ) and close to $100 for deep niche contractors and managers.
What's happening is that productivity per hour is *finally* going up. And nobody really knows why... but propagation of best-practice software engineering is the best explanation.
Machrone's Law - the computer you want costs $3000 dollars. True from about 1985 on... 'til, say, 1997 or so... and it's still *pretty* true...
Consumers were served by a Dell-Compaq-best Buy type mbutt retail thing, if not a price cutter storefront during the 386 days. That's still true.
Les Cargill Have you looked at wages in India-China? Why would any employer want to pay the above...
Motherboard-parts making slowly went offshore, and stayed. Mainly because Murkins couldn't build capacity as fast as it could be built Over There, because of regulatory issues. The stuff overseas was also brand new facilities, with Kaizen-Kasei practices and layouts.
??? My first 286 was $1400 in 1991*. buttembled by Gennywine Murkins in a storefront - parts were all Taiwanese, except the harddisk.
*a current machine at the time woulda been... $3000 :)
Oh, by the way - one cannot use models of hardware to predict markets in software. Different as trucks versus shipping.
-- Les Cargill