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Reminder: The delta in labor cost is less significant than the rate of change of technical skills in Emerging Markets. The fact that the rate of change is very high also means people who tried outsourcing 20, 10, or even 5 years ago have false impressions of the current reality. https://twitter.com/ryanpkirlin/status/1294672981189427202
This is a key part of the thesis at @AnchorlessBD. India is #1 globally for digital labor, but Bangladesh is #2 ahead of the US at #3. Difference is places like Bangladesh, Nigeria, etc are adding tens of millions of tech literate people every few years.
In last 10 years, over 400mm digital natives have aged into the labor pool in these markets. They grew up on Facebook, github, Reddit, etc just like American nerds. They build on AWS or Azure and read all the same materials as people here.
The other big thing is people who came to the US are increasingly not staying in the US once they build up their resume. They are returning to China, India, etc and bringing with them different ideas about corporate culture and the value of equity (not a concept in many markets).
And the young people? They’re 100% Mobile/software increasingly because in EMs banking, etc are so bad they can’t do business through them, so they’re jumping straight to pure digital. Major leapfrog effects.
This is the biggest theme of the next 20 years IMHO. The tech tools and related corporate culture + strategy are becoming democratized. The market is going to “slowly and then all at once” flip from a structural scarcity of technical talent to global ubiquity.
Do not listen to anying citing liquid markets experience in EMs, or who hasn’t visited these countries in the last 5 years. The rate of change puts them terribly behind the ball.
Get on a plane and go see this stuff, it is very worth the trip.
Get on a plane and go see this stuff, it is very worth the trip.
