I know a software engineer from Ukraine that started to work five years ago, and already earns 60,000$ a year. Personally, I’m very happy for them. But knowing how much taxes people pay (close to nothing, especially when compared to Germany), and how much money software engineers get in Germany and the US, I think the fact that a remote engineer from Ukraine can get much higher salary than a more experienced engineer onsite, is weird.
How is it competitive when compared to Europe or the US? The outsourcing model, as I saw it from the inside, usually has the following downsides: indirection in the communication; low organizational knowledge due to high employee turnover; low commitment due to limited organizational growth. These downsides lead to monetary penalties to the client, and these downsides would be much less present if an employee was on the team. For sure, outsourcing has many upsides.
When thinking about it, I’m afraid that similar cases in Ukrainian software market will lead to a burst bubble.
I’ve heard that some people switch jobs every year just for another salary raise, without being interested in the rest of the package. Such cynicism makes me feel sad and ashamed. This also makes me sad as a potential employer. Say I would like to hire an excellent engineer in Ukraine, but even if they are morally better than the status quo, if they are looking for a worthwhile project, for gaining valuable experience, for working with smart people, I’ll be still competing on these inadequate rates.