> a factory or workshop...where manual workers are employed at very low wages for long hours and under poor conditions.
They refer to their process as a 'factory model', and if those aren't poor conditions then why is their attrition rate so high?
Additionally many of their new contractors are US based. Bus drivers make more than that(~18 USD). You are WAY OFF BASE.
Minimum wage in Brazil would be less than USD1.50/hour (in today's exchange rate, assuming you are earning for 40 hours/week). 10x the minimum wage for a junior position is a great wage.
Also, I don’t think the american contractors earn the same rate of the ones in poorer countries. It seems very unlikely to me.
Reasonable people can disagree about this approach to building and running software companies. The article does a good job describing how a sort of a CA for the SMB market functions. It's an interesting and informative read, regardless of how you feel about it
> Joe Liemandt is the billionaire founder and CEO of Trilogy Software and ESW Capital
Does anyone know?
I guess you don't need 10x developers to write bug tracking software like Joel said...
Have a small sales team that does just enough work to cover whatever your churn rate is, and your business will print a stable amount of money for a long time. Combine this with acquiring at low multiples, and it's a decent strategy.
Sure, you might not grow your platform at 80% a year, with massive series A, B, C, D, E, and a unicorn IPO, but you don't need to for the strategy to work over the long term.
This is most bigoted statement I read on hn recently. What is your work? For some reason I'm quite sure that a lot of Ukrainian or Polish devs can do it "perfectly well" also...
My comment isn't denigrating IT professionals in foreign countries. It's stating that hiring capable, but less credentialed workers is not a losing strategy by default. The parent comment I replied to seemed to assume that replacing domestic employees with foreign employees was the fast track to business ruin. I happen to disagree with that.
Where the founder could die on the hill fighting for bright future and burn cash.
While as I read their buying tactics and employee dumping tactics it is despicable. But in life there is also place for scavengers that play important role ... because maybe company they bought would die in even worse way then what they do.
These companies have limited traction, keep them as is and they will die a slowly death after some years.
Or significantly reduce costs (by going offshore - probably with a smaller team), makes numbers much more attractive and sustainable long term.
I can see how this could be sustainable in India or Poland or Ukraine, but it says 17% of their workforce is located in the US. In this job market, how?
Maybe pre-pandemic this was appealing for those who wanted remote position, but now there are plenty of other remote friendly opportunities.
>> Hearing rates for sr software engineers in Ukraine - a popular place to hire good talent for "good value" - have gone from about $5,000/month (€50K/year) to $8,000/month (€80K/year) in one year. Taxes are 5-10% in Ukraine.
>> Why? COVID + rising demand.
talking about how employees will more likely hire remote (home country) than go through the hassle of doing VISAs (EU/US)
The global rates will be increasing and converging (to a degree)
These tech scenes will then pop out competitors to US firms.
They probably juice vendor locked SMBs quite hard on all fronts. Then as they go over what companies can pay for they shut down that venture of theirs and distribute profits over the network to not pay taxes but CEOs, board members get their pay day.