Welcome to the Slashdot Beta site -- learn more here. Use the link in the footer or click here to return to the Classic version of Slashdot.

Thank you!

Before you choose to head back to the Classic look of the site, we'd appreciate it if you share your thoughts on the Beta; your feedback is what drives our ongoing development.

Beta is different and we value you taking the time to try it out. Please take a look at the changes we've made in Beta and  learn more about it. Thanks for reading, and for making the site better!

Microsoft Tackles US Techie Shortage by Cutting Pay

theodp (442580) writes | about a year and a half ago

Microsoft 1

theodp (442580) writes "In September, Microsoft claimed it couldn't fill some 6,000 domestic jobs due to a shortage of qualified Americans and a lack of available visas. In February, it paid to promote a Code. org 'documentary' that highlighted the nation's programmer shortage. And in March, Microsoft joined other tech firms to press the President and Congress to address the lack of 'qualified, highly-skilled tech professionals, domestic and foreign.' So, techies must really have Microsoft over a barrel when it comes to pay, right? Wrong. This is Microsoft economics, kids, where a shortage of in-demand programmers can lead to a lower equilibrium price, not higher. GeekWire reports that a Microsoft manager informed hundreds of vendors Tuesday that the company is increasing its 'chargeback' fees — the amount it requires these firms to pay Microsoft for vendor workers based inside Microsoft's Seattle area facilities. The rate is going up from $450/month ($5,400/yr) for every workstation to $510/month ($6,120/yr) starting on July 1. GeekWire adds that these cost increases can ultimately impact work compensation for workers as some vendor companies effectively pass along the costs rather than take a further hit to their own profit margins."

cancel ×

1 comment

Sorry! There are no comments related to the filter you selected.

Are you sure? (1)

schwit1 (797399) | about a year and a half ago | (#43299519)

It sounds like Microsoft is raising the rent. The workers don't work for Microsoft, they work for a 3rd party but are using Microsoft's office space.

Check for New Comments
Slashdot Login

Need an Account?

Forgot your password?

Submission Text Formatting Tips

We support a small subset of HTML, namely these tags:

  • b
  • i
  • p
  • br
  • a
  • ol
  • ul
  • li
  • dl
  • dt
  • dd
  • em
  • strong
  • tt
  • blockquote
  • div
  • quote
  • ecode

"ecode" can be used for code snippets, for example:

<ecode>    while(1) { do_something(); } </ecode>