Is Technology Now a Commodity?

Computer Repair BoingBoing

My friend Damian recently gave up his public sector job and unleashed himself on the world of freelance programming. We have both been shocked at what he is experiencing.

It seems you can now get programmers willing to work for the price of a latte.

Back when I was programming we saw the signs this was coming, but I never expected how dramatic the effects would be until someone I knew personally was exposed to it.

Damian is dedicated and has serious coding experience but he can’t compete, his lowest “barely pay the rent” prices are way too high. Fortunately he gets work through word of mouth but the outlook isn’t great.

Rentacoder style sites now have such an overwhelming population of cheap-but-decent-enough programmers that just having skills and experience is not enough to lift your perceived value above the guy who will do your work for beer money or the oversees coder with lower earning expectations.

These coders list skills and knowledge a mile long. They are not all patching together copy and paste code, some have hard core abilities and qualifications.

Asking around it seems IT is going the same way. Technical support is not mostly done outsourced to several degrees, and installations have been priced down to bare minimum. Only the most highly specialized fields have resisted the downward pressure.

My advice to Damian has been to bolt on skills and widen his network. Not be “just” a coder, be a “coder plus”. Anything that can add perceived value, from usability and information architecture to project management. Also he should write articles, give away free software and hang out in communities to get himself known. This won’t help him win the coder auctions but will allow him to increase his marketability.

Do you think technology is a commodity? What is your advice for freelance techies? Please share in the comments …

Image Source: BoingBoing 

Posted on October 18, 2007 by Chris Garrett 
Filed Under Web 2.0

Comments

8 Responses to “Is Technology Now a Commodity?”

  1. Jack @ The Tech Teapot on October 18th, 2007 12:08 pm

    In a lot of ways technology is a commodity. One PC/server/switch is pretty much like another.

    But a programmer is more akin to a boutique. Programmers give a bespoke service to customers.

    If you are trying to compete on services like rentacoder then of course you are going to feel like an undervalued commodity. The answer, don’t compete on services like rentacoder!

    I know a contractor around here charges £350 per day. I believe she’s pretty busy. Doesn’t go through rentacoder though. Get hold of customers the normal every day way…create a website for your services then do good old marketing to get yourself in front of people who have absolutely no problem paying £350. Your mate is probably going to need to skills that are sizzling hot at the moment to get to £350. The women I am refering to does rails work which is hot at the moment. I doubt that a PHP programmer would get to that kind of level. Probably more than the average job on rentacoder though.

    There may be a time when programming is a commodity but I don’t think it is there just yet.

  2. Mike on October 18th, 2007 1:27 pm

    Maybe your genius friend should have done some “market research” before he jumped. Not very smart to start up any business with out some idea what you are going to do, who and where the clients are, what the competition is and how to price your product.

  3. ses5909 on October 18th, 2007 1:53 pm

    I started freelancing about 5 years ago..not full time. I didn’t go full-time until a year ago. Your friend definitely needs to network and get his name out there. I have been going to programming and web developer forums for years and just based on the info and my willingness to help other people, I have received several clients. I have gotten clients who have come through me from my blog. Places like web dev communities and your blog are places that you can demonstrate your knowledge of a subject as well as your command of it. This could give Damian an edge over people who he is competing against.

    When it comes to getting work, it really is about who you know. Networking will allow him to meet people who will hopefully think of him who may need his services one day or could refer him to someone who does. Of course you need the goods to back it up though.

  4. Chris Garrett on October 18th, 2007 2:16 pm

    @Jack – Good advice, thanks. It’s definitely a good idea for any freelancer to learn some basic marketing and sales tactics, even more so now :)

    @Mike – He was half pushed and half jumped, there were rounds of redundancies and pay cuts and the atmosphere was getting pretty grim. He was fortunate to land some work so wasn’t entirely jumping in with zero idea. I am sure he would have researched more if he had the time.

    @SES5909 – I agree completely. He has been building up contacts, releasing WP plugins, etc. What you describe is how I worked a few years ago, helping people on the ASP lists, forums, etc. Definitely a good route.

  5. Jack @ The Tech Teapot on October 18th, 2007 3:08 pm

    @Chris – the difference between the people working for peanuts and the “high flyers” is generally only that the “high” flyers” actually asks for the big money. I’ve not seen much in the way of technical differences between the two.

  6. Chris Garrett on October 18th, 2007 8:09 pm

    Good point Jack, perhaps it is more about confidence in your abilities rather than the actual abilities? :)

  7. Michelle on October 18th, 2007 9:12 pm

    When you start surfing through online marketplace sites, it is pretty eye-opening to compare wages across different parts of the world. I think your friend Damien has the right idea — in this world, you have to think about how you can add value. Jack definitely has the right idea: people with “hot” skills can more easily find jobs and charge higher rates, but a huge, huge part of establishing trust with someone is experience. If you’ve built a pretty good portfolio over time and can easily point to some key projects, you’re going to be more employable than someone from X country who just started programming.

    I work for a site called oDesk (www.odesk.com) and often browse through the profiles to get a sense of the current state of the job market. What you’ll find is that serious clients won’t just go for the cheapest rates — they’ll carefully scrutinize someone’s experience, education and skill profile.

  8. Chris Garrett on October 19th, 2007 1:19 am

    Glad to hear there are still clients read the profiles and look for the best rather than cheapest Michelle :)

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