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Every time I hear of developer shortages the next sentence involves increasing the H-1B visa pool.

I’m now in upper management. I’m told I can hire as many Indian developers as I want (based in India) but must limit my US development team. Why? Cost of course. There is no real shortage, just an attempt to clamp down on real wages.

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I'm also in the same position as a manager, but to me it makes perfect sense. Roughly speaking a staff+ engineer in India will be $60-100K/yr total comp including benefits (and I'm talking IIT talent, way above market wages) with skills equivalent to or better than one in the Bay Area at $500K+. Our best development right now happens out of our India office.

I mean you cannot deny that there is zero merit to the rule. A good developer in Bangalore is $35k a year. A good developer in the US will set you back no less than $120k + 40% for all the benefits and payroll taxes and other associated employment costs.

If by "clamp down on wages" you mean control expenses in a general sense, i guess you're correct, but you sure are making it sound sinister.

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