In essence, this is the difference in economic development. In other words, this is the difference between advanced and backward. For example, durian is very cheap in Thailand and expensive in China, because it involves huge circulation costs, and so do people. The foreign population is very small, and few people are engaged in software development. As far as the social demand is concerned, the demand of programmers is less than the demand, so the salary is infinitely increased. Coupled with the rapid development of the Internet in recent decades, the demand for programmers is actually greater. Therefore, not only abroad, but also at home, the salaries of programmers in all walks of life are very high.
The composition of the total social cost also determines the wage difference. The wage gap between foreign programmers and domestic programmers mainly lies in the overall economic development level. Now the salary of programmers in first-tier cities is several times higher than that in third-and fourth-tier cities, which is determined by the overall economic development level. It is this huge economic gap that leads to the development of software outsourcing. It is the huge difference in labor costs between developed and developing countries that leads to the emergence of outsourcing industry.
The overall economy is underdeveloped, but the labor force in densely populated areas is very suitable for outsourcing. To change this phenomenon, coupled with the policies of local governments, will soon promote the rapid development of this industry. Bangalore, India, for example, is a typical so-called small silicon valley in India. Almost all the technology giants of multinational companies have set up branches here to do high-quality things with low labor costs.