Last year I lost thousands of dollars multiple times outsourcing projects to people who could "do them no problem" until time for showing the results came in, and that capital was simply wasted. At the lower end, where people will take your money and do nothing for you or offer services not worth paying for, there will always be a market where people are glad to take your money.
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Good article by Aaron - as I wrote there:I think youre hitting the nail on the head in regard to price rises. As you know Aaron, Im out in Russia and weve seen them shoot up. Where we are the bottom rate is now $1k, usual is $1.5k - with Moscow jobs often starting at $3k. To put it in perspective people expected $200-300/month when I got here 3 yrs ago. Personally I think a lot of the small companies/one man bands have been priced out of the outsourcing market here. Maybe there is still options in India but in Russia youre certainly not getting quality at low prices. Of course you can sometimes get lucky and find people who outsource in the evenings to boost their income but you never know how available they can be.