Re: Offshoring: San Jose Mercury News article

["Steve Arrants" <stephena -at- compbear -dot- com>]

> "Kaiser Vice President Mary Henderson acknowledged the company has 
transferred
> about 200 information-technology jobs to Indian companies, paying 
between $25
> and $30 an hour instead of $80 to $100 an hour in the United States."
> 
>    Wow. $25 to $30 US per hour is an acceptable wage here in Canada. 
So much for
>    the arguments of exploiting third world workers.

Except that Kaiser isn't really paying the burdened operating costs of 
an employee. A rule of thumb for this cost is about 30% of the hourly 
rate. The burdened operating cost includes things like benefits, office 
space and equipment, etc.  And you can be sure that the employee in the 
offshore arrangement isn't getting anything NEAR the $25 to $30 per 
hour.


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