Re: [LUG] Closed to Open Source costs of development and offshore work.

[Bill Wilson <bill@xxxxxxxx>]

From bill@xxxxxxxx

Contrary to popular belief the main cost is overheads much of which is 
to do with legislation. Our overhead costs are 35-40 per hour plus a 
salary and include the usual rent rates insurance plus costs of admin 
staff to try to keep pace with legislation. As a company secretary there 
are about 30 pages of new info per week you are expected to know and 
comply with.
Staff to run accounts, secretarial, and credit control. Plus training 
costs in the IT industry are expensive. Euither pay for courses or allow 
staff paid time to investigate.
I get at least 1 email a day inviting me to put our development offshore 
(there is a big article in this weeks Microscope discussing this issue)
I am dead against putting development offshore mainly because we have to 
support after and it is much better if the same staff write and support 
the system.
Make no mistake the quality of code produced is excellent.
Plus its common sense to put money back into the local economy. I pay 
staff they spend it and hopefully some of the companies they spend with 
will buy from us. I dont think many Russians or I others will buy from 
us in the future.
At least 1 major Taunton firm has however moved development overseas 
with the subsequent loss of local jobs and I am sure there are others. 
The reason quoted to me was not costs but employment legislation.

Bill



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