I know someone at a growing division of a FAANG who has not been allowed to hire anyone outside of India for a number of years now. They're critically understaffed but the screws only tighten with each year.
When I was last in tech research we were prevented from working in new interesting areas as that work was being handed over to the China branch. I think we’re entering the looting stage of empire collapse. A hyper focus on short term gains to the detriment of long term gains.
These companies that have been built on the backs of US infrastructure that now don’t want to hire Americans should be razed to the ground. Fuck them, let them try to operate in Indias fucked up business environment.
> not been allowed to hire anyone outside of India for a number of years now
This is just the corporate way now in most listed western companies.
If the cost is 1/5th you can accept a lot of trade offs. Even if you need to throw 2x as many people at the problem it still comes out ahead. At least on MBA spreadsheets
As a FAANGer, I'm acutely aware that I'm an expense line item whose days are numbered. Do people still think it's a flex? There are hundreds of thousands of us. Working for an AI unicorn is the new flex.
Second 174 changes from BBB pretty much are for the tech industry - dropped the prior 5 year depreciation schedule to immediate, and foreign depreciation is now 15 years (!!!).
I can’t see how a US company doing dev outside the US would make any sense anymore, unless they’re big enough to structure everything away.
> I can’t see how a US company doing dev outside the US would make any sense anymore
The tax incentives are insane depending on size.
Getting $20-40k in tax credits per employee, 100% tax deductions on R&D, and around 20-50% of total investment cost getting subsidized when building a GCC is the norm in Czechia, Poland, India, and Costa Rica, along with various additonal local or state credits.
A number of mid-level leaders (Staff, Principal, EMs, PMs) at tech companies are also on work visas with little to no chance of converting to a GC, so employers will let them open a GCC in their home country.
Yea, GCC style optimizations don't work until your company hit the 150-200 headcount mark.
But it is those sized organizations that tend to represent the majority of hiring.
A company with 100 or fewer employees tends to be much more hard pressed with hiring, as revenue for these sized orgs also tends to be lower.
The Section 174 changes didn't have much of an impact one way or the other for larger companies and organizations.
The expectation for output has largely been set now, and even with the current changes I don't see much of an impact on hiring trends.
This also doesn't include the impact that AI productivity tools like Cursor is starting to have on AoPs. It's already the halfway point and I myself am starting to see increased proposals from Engineering leadership to leverage Cursor style tooling wherever possible. And a number of the seed and Series A companies I've funded over the past 2-3 years have largely kept headcount below 100 and heavily utilizing automation where possible, and are on track to hit Series B style FCF metrics with a much leaner workflow.
Section 174 changes absolutely have an impact on all sizes of orgs. It’s been a major downward pressure for the last several years on the US market, and causing a major outsourcing push. It’s likely to do the opposite now.
That said, larger orgs can weather it better - but it’s a fundamental change.
And my point is that the outward trend for offshoring (along with the increased feasibility of AI Productivity tools) has been occuring irrespective of the Section 174 change, and this assumption that it's change will suddenly restart hiring just isn't going to pan out.
certain domestic market protections would be wise for any politician to support, unfortunately the craziness of this administration smothers the conversation.
