Jade
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In business, a lot of work can be done by junior people, but companies charge a premium because they have the experts on call, in case they are needed.
For example, when you go to the doctor, the nurse does a lot of the routine work so the doctor doesn't have to.
When you get your car fixed, junior mechanics do the work, but the experienced staff reviews the work (hopefully).
Similarly, most of the work in IT is grunt work, but big consulting companies charge a premium because they have senior hotshots available for the design/review part of the project.
Outsourcing is a vicious circle. First companies outsource their 'junior' work to countries such as India to save money, while the 'seniors' will be based in US or Europe. Then they will learn that this model is untenable as 'seniors' have to be in proximity of 'junior' for guidance and quality. So either the companies will raise new 'senior' positions in India or send the 'seniors' to India. This cycle has helped India move up the value chain in the last 10 years. Now Microsoft has the largest office in India outside US.