I'm an American expat and one of the things that I quickly discovered when I left and started traveling is that skilled engineers (and designers, etc.) in countries with significantly lower costs end up figuring out how much they're worth to employers/clients in richer countries. When they do and they have enough of a track record to prove their worth, their rates go up.
So if you think you're going to take your freelance developer in the US who charges $150/hour and replace him with an equally skilled freelance web developer in, say, Brazil for $15/hour, good luck. Any such developer in the Brazil will eventually discover that he's able to command much more. Except in a few rare instances it won't be $150/hour, but when you factor in time zones, cultural differences and language, there is far less of a difference in cost than you'd think.
Anecdotally, I have a few friends that run companies in the US that have expanded their hiring to consider remote candidates outside of the US and Canada and they still struggle to find suitable candidates even though the rates they're offering are based on qualifications, not location. In other words, they're willing to pay $100+/hour to the right people no matter where they live. Good people are in demand everywhere, and they know it.
I think people underestimate the demand for talent and think that globally we can fill that hole. We can’t, yet. Humans don’t scale well enough and eventually automation will be the real problem. (But I also think that is further away than currently advertised, but different topic.)
I’m dealing with a company that decided to try outsourcing for a second time starting just before covid hit and it’s just as miserable as it was the last time they tried in 2009. “But video conferencing” doesn’t bridge cultural friction and timezones.
This is far different than then.
In 2000, remote work was almost an impossibility... between bandwidth, protocols and everything else.
These days it's as easy as enabling your built-in HD cam and mic and getting to business.
I've had my share of severe pushbacks with "management" over the years.
They've often been burned by shopping projects out to the lowest bidder and suddenly realize you need competent engineers to make it happen.
The problem is you can find competent engineers now across the planet for far less than what you would pay a US-based engineer, forget about whatever is going on in SF/SV.
A lot of people would like to stick their fingers in their ears and say "nah nah nah" rather than realize what is going on, but I deal with it daily.
But are you really saying that it's only in 2020 that people put effort into outsourcing to cheaper foreign talent?
Or that the technology of remote work is now what makes it possible? I dispute that as well, good remote collaboration has been happening in open source for forever. People who can make it work make it work. It's not the issue and never has been.
Citation needed.
We're on HN, a technology site.
Many of us have realized we can do our jobs the exact same way as we did before.
I'm not talking about construction workers, police, fast food, etc.
I'm not sure this needs a citation.
"Many of us" with decades into this career and who have managed such teams would disagree.
This is different because Covid-19 has shown to everyone that they can do their jobs remotely.
And if they can do their jobs remotely, why can't an equally skilled engineer in a country with a cost of living 1/10th of the "rich countries" do the same?
They are realizing they can, and handing this off.
I too was around in 2000, writing applications in C# beta before 1.0.
Still here but noticing the trends.