They're bringing in H-1B's at $60-90K, so there's got to still be an advantage in having people here. Something more than time zone.
A friend of mine in Huntsville, Alabama told me that his company was spending between $25,000-$30,000 on the “overhead” of employees (employer portion of SS, insurance, etc). A $100,000 employee salary costs over $130,000 to employee.
I’m guessing the H-1B Visa number is far less than that.
“They’re bringing in H-1B’s at $60-90K, so there’s got to still be an advantage in having people here. Something more than time zone. “
Many companies have communications problems even though the people communicating are in the same building. Running a global enterprise is a complex task that’s WAY beyond the average company. Engineers from India will accept much less money and you can have them in the cube next to yours for less than most Americans of similar technological skill. I have known Indians to live in a dorm type setting while pulling down much less than the people they replaced and still sending money home. They are satisfied with less, for now, and willing to live in much more crowded conditions. People here have learned to expect, say, $110k per year and lots of benefits. People here are being replaced with Indians for much less as the Indian, at least for now, is happy with much less. The Indian is also okay with living at a lower level than the American. Imagine telling your wife that the new job’s pay is a big cut and you’ll have to downsize your expectations. (I get spooked just thinking about having that conversation!)
Indians are also changing American culture with Hindu temples; shabby attire, slipper clad men, to speaking with an English accent that would frighten the bats.