I suspect but don’t know how to validate that it’s the Indian firms overselling the savings. They could get extremely competent people by charging 60% of a western salary, paying 40% and pocketing the difference. Instead, they lowball those numbers to the point where their teams are stretched thin and don’t know what they’re doing, yielding bad results that are on par with all the other Indian firms doing the same thing. If capitalism worked as advertised, somebody could found NonGarbageCorp, set more realistic expectations around cost savings, attract the most competent technical remote workers, deliver great things and become immensely rich. But it would take a serious investment of capital and time to establish a reputation while western firms suspect them of secretly being GarbageCorp32849327, so the people who could pull off NonGarbageCorp just launch GarbageCorp32849327 instead.
I suspect but don’t know how to validate that it’s the Indian firms overselling the savings. They could get extremely competent people by charging 60% of a western salary, paying 40% and pocketing the difference. Instead, they lowball those numbers to the point where their teams are stretched thin and don’t know what they’re doing, yielding bad results that are on par with all the other Indian firms doing the same thing. If capitalism worked as advertised, somebody could found NonGarbageCorp, set more realistic expectations around cost savings, attract the most competent technical remote workers, deliver great things and become immensely rich. But it would take a serious investment of capital and time to establish a reputation while western firms suspect them of secretly being GarbageCorp32849327, so the people who could pull off NonGarbageCorp just launch GarbageCorp32849327 instead.