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Big companies outsourcing
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Big companies outsourcing

jimaekjimaek Member
edited April 2017 in General

I just found out that Namecheap outsources all dev to a Ukrainian company https://zone3000.net/

I honestly thought they did everything in-house. How popular is this? Do all big companies outsource to cheaper countries? How do they even find them, its not something you can just google.

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Comments

  • RhysRhys Member, Host Rep

    Most of Namecheap's support team are Ukrainians too they really love outsourcing.

  • hostdarehostdare Member, Patron Provider

    This is too common ,most of them are outsourced to India or any cheap countries .

  • Support doesn't surprise me. But I thought important stuff like dev would be done locally.

  • hostdarehostdare Member, Patron Provider

    Well it make sense when Dev team will be 5 times less cost .

  • Probably because cheap workers, $45 per month and bacon inclusive

    Thanked by 1Hxxx
  • hostdarehostdare Member, Patron Provider

    @jenkki said:
    Probably because cheap workers, $45 per month and bacon inclusive

    nobody works for 45 not even in bangladesh or such countries

  • Makes sense. Registrars are very low margin and lowering costs keeps them competitive.

  • hostdare said: nobody works for 45 not even in bangladesh or such countries

    That official middle income in UA

  • hostdarehostdare Member, Patron Provider
    edited April 2017

    jenkki said: That official middle income in UA

    That would low paying jobs ,not tech or IT . IT starts at 150-200 usd/mo in low paying countries,I know like in india ,pakistan ,bangladesh .

    I do not know much about UA though unless it is that bad :)

  • hostdare said: I do not know much about UA though unless it is that bad :)

    Folks go to rallies with flags in hands that they are paid by the gov for $1 per hour on rallies, just some way to earn more than, national pride at the 2-nd place.

    Thanked by 1hostdare
  • jiggawattjiggawatt Member
    edited April 2017

    I don't know the background of Namecheap, Inc. but I wouldn't be surprised if it's just registered in the US (Phoenix, AZ) and everything else is done in UA. A lot of companies originate in the developing world: Zoho, Viber, Wargaming, EPAM, etc.

    Just because a company does business primarily in English doesn't mean it's from a rich world Anglophone country.

  • MikeAMikeA Member, Patron Provider

    Well, they're probably giving people fair paying jobs considering the region

  • exception0x876exception0x876 Member, Host Rep, LIR

    @jenkki said:

    hostdare said: nobody works for 45 not even in bangladesh or such countries

    That official middle income in UA

    Bullshit.

  • jenkkijenkki Member
    edited April 2017

    exception0x876 said: Bullshit.

    Senior's pension 1248 Hryvna, that est $45. That amount officially set by govs. You can look into docs if needed.

  • MikePTMikePT Moderator, Patron Provider, Veteran

    We do NOC support for several companies and haven't had any issues, we see it as an enormous potential.
    While we're in Portugal, and salaries are still lower than, for example, USA, we provide them training and such that make the budget totally worth for the price.
    Many companies actually prefer that way. Many companies do not have local presence in terms of NOC, they do all remote, then outsource the support as they'd rather have local presence somewhere and proper training.

  • raindog308raindog308 Administrator, Veteran

    jimaek said: I honestly thought they did everything in-house. How popular is this? Do all big companies outsource to cheaper countries? How do they even find them, its not something you can just google.

    Namecheap is not a "big" company. They're private but I doubt they're in a billion-dollar sales range. I could be wrong...but even if they are, they're not Fortune 500 or Global 1000.

    Do all big companies...no, but a huge percentage. It's extremely common to take low-level services and send them offshore - you don't need a $120,000/year DBA to install SQL Server or a 12-year pro in Manhattan to reset a password. Ditto for L1/L2 help desk, network, etc. The ideal of course is "noshore" - e.g., automate that install or make a password reset portal, etc.

    There are definitely pros and cons to outsourcing. You give up agility and get more mature processes and lower costs. You have to hire people to oversee and audit, but maybe that's better. Really depends what you want/need.

    Outsourcing by big companies to Russia/Ukraine is very uncommon. RU/UA is just not a significant player in outsourcing because of their government, tax policies, and mafia. Doesn't surprise me that there are nimbler smaller RU/UA companies doing more midmarket contracts.

    India is still the major player, but of course there is lots of outsourcing in Malaysia, Philippines, Central America, etc. Major outsourcing companies - IBM, HPE/CSC (er, DXC), CapGemini, Tata, Tech Mahindra, etc. - are primarily there.

    How to find? They call you. Seriously, major outsourcers are not interested in pipsqueaks like NameCheap. They want big contracts from big companies, and they call on them regularly.

    Disclaimer: this is my experience in infrastructure management for a Fortune 500. For the app/dev side of the house, I hear similar reports.

  • @jenkki said:

    exception0x876 said: Bullshit.

    Senior's pension 1248 Hryvna, that est $45. That amount officially set by govs. You can look into docs if needed.

    This isn't the whole picture. There's a significant amount of "black" money that floats around Ukraine which isn't reported in official statistics. Seniors often get money from their working children, grandchildren and other relatives. Frequently this money comes from abroad. Often this money is even earned domestically but not reported to the government.

    I don't know about Ukraine - but in Belarus, the average IT worker earns about US$1600/mo (net) officially. Freelancers earn a significant amount more and there are companies that pay "black" bonuses.

    Labor is still much cheaper in E. Europe, but you won't always get a dedicated staff. I know a few EPAM managers who are so anti-West that I would be scared to outsource to them. They know what their colleagues in the West earn and they resent getting paid less for the same bullcrap.

  • jarjar Patron Provider, Top Host, Veteran

    @raindog308 said:
    Namecheap is not a "big" company.

    Most people don't even seem to realize they're not a real registrar. They're a reseller for enom.

    Thanked by 1Riz
  • OnApp_TerryOnApp_Terry Member
    edited April 2017

    @jarland said:

    @raindog308 said:
    Namecheap is not a "big" company.

    Most people don't even seem to realize they're not a real registrar. They're a reseller for enom.

    They've been ICANN accredited for about 10 years. I believe just recently they started selling domains directly, rather than through Enom now -> http://adamyamada.com/namecheap-stops-reselling-domain-names/

    I suspect but can't confirm that Zone3000 may be NameCheap's "offshoring" company name (re: namecheap is the only client for Zone3000).

    Thanked by 2jar HyperSpeed
  • jiggawattjiggawatt Member
    edited April 2017

    raindog308 said: Outsourcing by big companies to Russia/Ukraine is very uncommon. RU/UA is just not a significant player in outsourcing because of their government, tax policies, and mafia. Doesn't surprise me that there are nimbler smaller RU/UA companies doing more midmarket contracts.

    60,000+ IT workers are employed in Belarus, and most of those are doing outsourced work for North American clients. It's more common than you think, but there's somewhat of a culture of secrecy due to global geopolitics. (I can't find the source - but I recall that Belarus exports $60 of IT services per citizen annually v. Russia which exports $40.)

    Take a look at the job market: https://salaries.dev.by

    Belarus isn't even a member of the WTO and nobody expects their courts to work. However, the government Lukashenka did establish a special economic zone specifically for IT to placate their smarter citizens' desires for a real economy. So far, that "agreement" with the private sector has been holding.

  • jarjar Patron Provider, Top Host, Veteran

    @OnApp_Terry said:

    @jarland said:

    @raindog308 said:
    Namecheap is not a "big" company.

    Most people don't even seem to realize they're not a real registrar. They're a reseller for enom.

    They've been ICANN accredited for about 10 years. I believe just recently they started selling domains directly, rather than through Enom now -> http://adamyamada.com/namecheap-stops-reselling-domain-names/

    I suspect but can't confirm that Zone3000 may be NameCheap's "offshoring" company name (re: namecheap is the only client for Zone3000).

    Ah yeah I do see now my latest .org registration shows namecheap where my older (but not that old) domains all say enom.

  • desperanddesperand Member
    edited April 2017

    @jenkki said:
    Probably because cheap workers, $45 per month and bacon inclusive

    Are you from Russia? Because so many bullshit can say only Russians / Belarus guy against Ukraine. (or a man with brainwashed)

    @jenkki said:

    exception0x876 said: Bullshit.

    Senior's pension 1248 Hryvna, that est $45. That amount officially set by govs. You can look into docs if needed.

    The minimal pension is 1248 uah, this is correct. But it's not salary. Minimal salary around 3.300 uah (~110$), average salary around 5-8k uah (200-300-400$) for different jobs. IT salary starts from 300-400$/m for juniors / testers, ~800-1.8k for mid, 3k+ and more for senior developers. And this is "official" "white" salary. But a lot of people working 12-16/24 hours per day and have "black" income too. So a lot of people has around 500-600$ average salary.

    jiggawattz said: This isn't the whole picture. There's a significant amount of "black" money that floats around Ukraine which isn't reported in official statistics. Seniors often get money from their working children, grandchildren and other relatives. Frequently this money comes from abroad. Often this money is even earned domestically but not reported to the government.

    As a citizen of Ukraine I can confirm these words. Therefore, we have had 2 revolutions in the past 10 years. Since we have a very hard for doing business, a lot of corruption and problems for doing business honestly and fairly.

    Thanked by 1Ole_Juul
  • desperand said:

    @jenkki said: Probably because cheap workers, $45 per month and bacon inclusive

    Are you from Russia? Because so many bullshit can say only Russians / Belarus guy against Ukraine.

    Belarusians don't say this bullshit. Things don't change here and hence no revolutions, but there is no lack of admiration for The Struggle of our southern brothers.

    Thanked by 1WSS
  • raindog308raindog308 Administrator, Veteran

    jiggawattz said: 60,000+ IT workers are employed in Belarus, and most of those are doing outsourced work for North American clients. It's more common than you think, but there's somewhat of a culture of secrecy due to global geopolitics. (I can't find the source - but I recall that Belarus exports $60 of IT services per citizen annually v. Russia which exports $40.)

    Honestly, though, 60,000 is a drop in the bucket. It's millions in India.

    Again, I think midmarket and small companies are more flexible and will look in less common places...once you get to big companies, they're dealing with the IBMs of the world, and the big outsourcers aren't in Eastern Europe. Whether you want to add "yet" is a fair point of speculation.

  • hostdarehostdare Member, Patron Provider

    raindog308 said: How to find? They call you. Seriously, major outsourcers are not interested in pipsqueaks like NameCheap. They want big contracts from big companies, and they call on them regularly.

    True , I can vouch for that . Most outsourcing in India here work for big players like British airways,Brazil ISPs and at&t (I know guys working in these companies personally )

  • WSSWSS Member

    @hostdare said:
    True , I can vouch for that . Most outsourcing in India here work for big players like British airways,Brazil ISPs and at&t (I know guys working in these companies personally )

    ... and the rest of them work for an IRS call center.

  • jenkkijenkki Member
    edited April 2017

    desperand said: Are you from Russia? Because so many bullshit can say only Russians / Belarus guy against Ukraine. (or a man with brainwashed)

    Really? Open a every docs or even look into YouTube reports by real peoples, there no need to be brainwashed, that another myth

    desperand said: Therefore, we have had 2 revolutions in the past 10 years

    If you can call this - revolution? Lost 1/3 the country. Naive Inc

  • jiggawattjiggawatt Member
    edited April 2017

    @jenkki said:

    desperand said: Are you from Russia? Because so many bullshit can say only Russians / Belarus guy against Ukraine. (or a man with brainwashed)

    Really? Open a every docs or even look into YouTube reports by real peoples, there no need to be brainwashed, that another myth

    Where are you from? Yes - there is poverty in Ukraine and people complain about it on Youtube. But incomes are higher than reported. That's natural in an economy with a large black market. The IT industry is more exposed to global markets than domestic, and thus IT workers earn significantly more as @desperand described.

    desperand said: Therefore, we have had 2 revolutions in the past 10 years

    If you can call this - revolution? Lost the country. Naive Inc

    The Ukrainian Parliament formally voted to remove Viktor Yanukovych from power on 22 February 2014 following the Euromaidan revolution. Yanukovych had fled the country on 21 February. Then the country split apart. That's the definition of a revolution.

  • raindog308raindog308 Administrator, Veteran

    jenkki said: If you can call this - revolution? Lost 1/3 the country. Naive Inc

    You are ignorant (you don't know what you're talking about).

    Because you're trying to comment on something you're ignorant about, you sound like an idiot.

    And to be honest, when you insult an entire country's populace from a place of ignorance, you're being a dick.

    jenkki said: If you can call this - revolution?

    @desperand is referring to the Orange Revolution and the 2014 revolution.

    Gosh, Wikipedia terms them revolution in two separate articles. So yeah, I guess he can call this revolution.

    jenkki said: Lost 1/3 the country. Naive Inc

    Hey, why not make fun of Belgians or Poles or Russians or Chinese or many other countries that have lost territory to aggressive, militaristic power? Ha ha, what a bunch of losers! Is that what you're trying to say? WTF, dude?

    I really find your comments very offensive because you're mocking another country for something that is not their fault. Please tell us what country you're from, and I'll be happy to illustrate your peoples' failings.

    Thanked by 1Ole_Juul
  • raindog308 said: I really find your comments very offensive because you're mocking another country for something that is not their fault.

    Again its your own view, there anyone have rights to have own view too, that right?

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