[PatrioticAmerican]

"BUT, the market does not set the rate based ONLY, or even primarily, on the lowest rate"

They sure do. Why do you think indian firms are getting the job? Because they are better? It is because they usually are the cheapest.

Clients have only so much to spend. It doesn't matter a damn if the higher price is worth it, they can only pay so much, and we usually most if not all the budget. After 24 years in this business, I'm pretty damned good at that.

For me, a single 80K dood is no more efficient in some projects as a 40k dood. Some projects are brain dead work and only require the minimal skill set. In some projects an 80k guy is needed and that's why he gets 80k.

For 40k jobs, I'd rather give two 40K doods a job than one 80k dood. Besides, who says that there are two 40K jobs that I can combine into one 80K?

[Starwind]

Republican Party Reptile:

"BUT, the market does not set the rate based ONLY, or even primarily, on the lowest rate"

PatrioticAmerican:

They sure do. Why do you think indian firms are getting the job? Because they are better? It is because they usually are the cheapest.

Moreover, the customer (or contracting manager) often lacks the competance to disceren the more skilled service vendor and hence all vendors look alike, in which case, choose the cheapest.