Yeah, this is largely BS.
Most companies like mine have variable resource needs. When projects are in full swing, maybe I need to ramp up my resources by 20%. I have two choices: hire more domestic resources or get contractors. Let’s put aside the fact that it takes me months to find qualified domestic resources right now. (Months!) If I hired them, I’d have to fire *someone* during the ebb. Since business does not have tenure and is a day to day meritocracy, I’d keep only the best, which means anyone is at risk.
By using contractors for this variable capacity need, it’s actually job security for my full timers. When the ebb comes, the contractors flow out.
Now, when it comes to contractors, you typically give them the grunt work. Which would I rather do - pay $90/hr for a domestic contract coder, or <$30/hr for an Indian one? Given the fact I’ll be giving that resource grunt work, I’ll take the $30/hr resource please.
Bear in mind I have 6 full time positions open which will take me months to fill. There is a massive shortage of good coders.
So what pay are you offering?
Have you considered outsourcing your HR dept.?