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It s no surprise that programmers salaries are headed down to what an illegal immigrant working at a slaughterhouse in Nebraska would get paid, because they just don t think about if they are doing high-quality work for the end users I think because of that, managers have said, I m tired of these people I don t want to see them I haven t had a good experience They ve been late, they haven t done what they ve promised, and what they ve done has been bugridden and not very good for the end user So if I can t have a good experience with these people, then I ll just get rid of them I ll have them in India or China where I can t see them and they won t get on my nerves as much.

So I think there s an emotional component to why programmers are being offshored: it s simply that the businesspeople hate them..

But do you have any controls in there to stop them from putting it on a network with three users and a common back end.

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people did, but the later arrivals, when the venture capitalists came in and said, Oh, you guys should just clock out at 5 pm and you shouldn t write, because programmers shouldn t have to do more than code, they were so happy that they didn t have to work hard anymore We don t have people like Philip and Jin reviewing our code and telling us to redo it to be cleaner and simpler They were so happy to be relieved of those strictures that they very quickly lapsed Not everyone, of course, but the majority We built the company a little too fast, and consequently the last 50 percent of the people hired really didn t have much commitment to the corporate culture There were some warning signs.

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Consider McKinsey, which holds itself out as one of the world s leading repositories of knowledge on how to manage a business They say they ll never grow their company by more than 25 percent per year, because otherwise it s just too hard to transmit the corporate culture So if you re growing faster than 25 percent a year, you have to ask yourself, What do I know about management that McKinsey doesn t know I still think it s more efficient this is just an old Lisp programmer s standard way of thinking if you have two really good people and a very powerful tool That s better than having 20 mediocre people and inefficient tools ArsDigita demonstrated that pretty well We were able to get projects done in about 1/5th the time and probably at about 1/10th or 1/20th the cost of people using other tools.

Of course, we would do it at 1/20th of the cost and we would charge 1/10th of the cost So the customer would have a big consumer surplus They would pay 1/10th of what they would have paid with IBM Global Services or Broadvision or something, but we would have a massive profit margin because we d be spending less than half of what they paid us to do the job..

Livingston: So you re doing well, have great people, and are profitable, and then you decide to take VC money Greenspun: Here was the problem: hiring businesspeople was almost impossible. That was one of the things that drove us into the arms of the VCs. Why is it hard to hire businesspeople for a young company There was a guy recently hired by Microsoft to be their chief operating officer Kevin Turner. He s 40 and was CIO of Wal-Mart. Graduated from East Central University in Ada, Oklahoma, with a bachelor s in business. That was it. (Cautionary for those of us in the higher ed biz; this guy never had much of it, but he was apparently very effective.) They could have hired anybody in the world they have all this cash and they hired this guy. You want somebody who s a really good manager. Managing your company might be harder than managing Microsoft because Microsoft has $40 billion in cash, so they can recover from mistakes that you won t be able to recover from. So you need a guy like that. But entrepreneurs love their babies and never ask themselves, Why would a guy like that want to work for me I have no resources to manage. That same person could work at Microsoft and have tens of thousands of good employees to deploy on projects, tens of billions of dollars to invest in interesting projects.

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