I recently lunched with a protégé of mine, now CIO of a medical software company with around 20 developers, with QA coming out of Prague.
After landing 2 very large new accounts, the company got its 1st round of PE funding.
The PE company very quickly decided to get rid of their US development staff (including my friend) & move the development to Prague.
My experience (I was a software development manager/executive for 30 years) tells me that replacing your entire development staff after landing 2 large accounts is a really bad idea.
But, the PE guys figure they can drive expenses down to raise the margins, making the company look attractive to other investors, and then they can sell out before the damage gets noticed.
It seems like every medical office I go to (primary care, dentist, eye, dermatologist, orthopedist) has a new computer system that they hate because so many things don't work. I wonder how many of those systems came about in scenarios like the 1 I just described?
Producing a high-quality, reliable product is not a concern at all any more.
The only concern is maximizing $$$ when the investors cash out.
And don't get me started on "AI".
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