The Problem of Outsourcing

Intro:

Outsourcing has quickly spread through the tech industry. What started as outsourcing simple IT tasks has grown into companies shifting full-scale software development projects to countries with lower labor costs. This has been particularly hard on American developers, who now find themselves facing shrinking job opportunities and competing not only with their peers locally but also with offshore developers at a fraction of the cost. In this article, we’ll dive into how outsourcing is taking jobs away from American developers and, more importantly, what we can do.

The backstory:

I recently acquired a client who outsourced to Indian developers who took $60,000.00+ from him and his investors and left him with a trash mobile app while also failing to get the app approved by Apple's App Store review team. The client came to me in a rut, and my team and I had to pick up the pieces of a badly written program and make some magic happen for our client. The point I'd like to highlight is that he spent a hell of a lot more money outsourcing than he would have if he found me to begin with and on top of that, we would have gotten the job done right the first time.

Impact on American Developers:

The direct impact of outsourcing on American developers has been significant. First, wages have stagnated, as companies are reluctant to pay higher salaries when they can outsource for less. Second, many mid-level and entry-level jobs have disappeared, with junior developers particularly vulnerable. The result is that many American developers either struggle to find work or are forced to accept lower-paying jobs that don’t reflect their skill level.

What Can Be Done:

While outsourcing isn’t going away, there are proactive steps that American developers can take to stay competitive:

• Focus on communication and client relations: U.S. based developers have an edge in their ability to communicate directly and work in the same time zone with clients, which can lead to more collaborative and efficient projects.
• Encourage local hiring initiatives: Companies should invest in local talent through apprenticeships, mentorships, and long-term hiring strategies rather than seeking short-term savings through outsourcing.
• Advocate for fair labor policies: Developers can get involved in lobbying efforts or discussions that encourage the creation of policies protecting U.S. jobs, ensuring fair competition.
• Vote to elect better leadership: Developers can exercise their right to vote and elect leaders who support the American economy and workforce.

Reflections:

As someone who runs a web development company, I’ve seen firsthand how outsourcing has affected both clients and developers. It’s true that many companies find cost savings by outsourcing, but they often miss out on the benefits of local collaboration and deep client understanding. For American developers, the key to remaining competitive is focusing on what makes us different: the ability to understand local market needs and deliver high-quality, tailored solutions.

Advice to Others:

To any developer feeling the pressure of outsourcing, my advice is simple: don’t try to compete on price alone. Instead, position yourself as an expert in a specific area or as someone who offers a premium service that offshore developers may not. It’s also crucial to keep learning and building. Tech is always evolving, and the more adaptable you are, the more valuable you become.

Side Notes:

There's more to come - personal and technical.

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