Price of programming in London
First of all, i don’t intend to annoy nor piss off anyone with that small text. It’s just something i have had on my mind from a long time now, but as i am open to good ideas, please feel free to send me some after you read that controversial piece.
As a CTO, technically i have my yearly roadmap, that needs as you can guess it, technical people to actually work it out ! Multiple new projects, maintenance. You name it ! The bottom line to me are costs. I always try to get the projects done, and the maintenance as well with spending as little as possible, of course with boundaries related to cost/performance. I notice that trend in London, now for years, where companies having huge investement, are hiring developers on their non-earning projects, at a crazy rate, and then are busted down, making these same developers redundant. Here i always try to approach these project, with a clear budget map, like if i was owning a sports betting project. Taking in consideration my spending, my risks as well as my earnings – Making it therefor complicated to compete with others salaries. Of course when one or the other is busted off, i get back some programmers at what i would call a regular rate, until the next new company starts up. Happens about every year.
Now, i do not mind paying 30,000+ GBP (gross) for a good developper and even more if it’s needed ! But, come on ! On 100 programmers we give our standard technical test, 75% of them are at a very basic level of programming, wanting 35,000 GBP, as they will be in my production line (treating mostly small tasks until they get better). Some guys with the slightest skills ask for 40,000+ lately. Again, i do not mind paying for quality, but sadly many think they have quality while they do not. Just using pre-made libraries or framework doesn’t make you a good programmer.
Anyways, to fix that issue, i turned to outsourcing. Keeping a core of good programmers here in London for R&D Projects. People that are worth the price i invest in them, and exporting all the small tasks and maintenance in India and Ukraine where the cost of living is way lower, so you guessed it, the salaries are low as well. It’s the only way sadly to stay profitable and keep my costs down, because as well as the regular programmer, i have to keep my job as well in front of the board, by making good products while spending the least.
India, i tried it in the begin of 2000 – Programmers were working at different hours , and were not that good. Now, in 2012, i have to admit i am impressed, these guys for 1400 a month works 6 days as week, 9 hours a day and have 8 to 10 years experience in the field, making them even more efficient than some of our home made programmers. And guess what, they work in GMT ! Ukraine is totally different, programmers are a bit more expensive there, but have always been quite excellent.
I really enjoy hiring people in the UK and in London as it makes the local economy grow, but i think that with the actual average cost of a programmer, thanks mainly i guess to the cost of living and companies spending without really having focus on a clear strategy, we are doomed to have more and more companies outsourcing !
I met recently a few other CTOs, outsourcing their programming needs in India, China, Philippines, Ukraine, Bulgaria and many other non-european countries, like me keeping a core of programmers in the UK. It’s sad in a way, but obviously, it seems the only way to last here. Something else is that i notice that many people call themselves programmers (it’s not only related to the UK), while they really have a quite basic knowledge. I also try to give a chance to people not only based on the standard technical test, but also with their aptitude to think, learn and communicate, as it’s important. This make my programmers more loyal in a way to the company, and you can achieve to have some great skilled developers.
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