So let's assume the following:
You outsource your software development to some country with quite low average monthly salary. Say some country in eastern Europe, where average salary is $500 / month.
Then you only hire from the top CS programs in the country and pay them, say, 3 times the national average - so $1500 / month. Given 150 work hours in a month, that comes out to $10/hour gross pay.
You get good engineers, pay less, and they earn more than they'd get from pretty much any domestic employer.
If the average software dev in the US makes, dunno, $70k / year, then that would be the equivalent of getting hired on a $210k / salary.
Of course, it's not all smooth sailing - but I think the important part here is to keep in mind that pay is relative. What could be a pitiful salary in rich western countries, could be a very good salary other places.
You outsource your software development to some country with quite low average monthly salary. Say some country in eastern Europe, where average salary is $500 / month.
Then you only hire from the top CS programs in the country and pay them, say, 3 times the national average - so $1500 / month. Given 150 work hours in a month, that comes out to $10/hour gross pay.
You get good engineers, pay less, and they earn more than they'd get from pretty much any domestic employer.
If the average software dev in the US makes, dunno, $70k / year, then that would be the equivalent of getting hired on a $210k / salary.
Of course, it's not all smooth sailing - but I think the important part here is to keep in mind that pay is relative. What could be a pitiful salary in rich western countries, could be a very good salary other places.