Over the past decade, the IT sector has undergone a radical structural shift. The myth of the continuous rise and inviolability of the tech worker has been shattered by the laws of capitalist concentration, the global redistribution of labor, and the advent of Automation 2.0 (Artificial Intelligence, AI). --- The IT sector has two specificities that make it important for the revolutionary potential of global society. On the one hand, its very subject matter is key to the functioning of the world as we know it. On the other hand, due to the possibility of remote work, it is the easiest sector to integrate workers from poor countries compared to other sectors.
The processes and technologies on which today's corporations and states are based are controlled by highly skilled workers (and in particular those in the IT sector), whom we call the "cognitariat". Under the pressure of the new processes, their high standards collapse, and their illusions of security disappear. Their radicalization and mobilization behind the revolutionary cause is a key factor for the success of a future revolution.
Part I: Geographic concentration and stratification of personnel
The global IT map is deeply divided into three main zones, determining the qualifications and living standards of workers
The Technology Center of the West
This is where the current technological revolution, including modern AI, was created. This is where the strategic human resource potential is concentrated - software architects, AI researchers and product managers. But despite their high qualifications, for the most part they are no longer the "labor aristocracy", but are subjected to intense pressure for efficiency and the constant threat of layoffs.
Moreover, the US is no longer the leading country, at least when it comes to the number of software engineers. If in 2014 the US had the most engineers, around 4 million, in 2024 India will already be ahead of them with almost 6 million. For China, the forecasts even reach 7 million. In 2025 the trend will continue, despite the "cooling" of the market.
Wages in the West are also declining. As of 2014, with an average salary of ~$95,000, purchasing power is no higher than in 2024-2026, with an average salary already over $150,000. The cost of living (especially rent and healthcare in cities like San Francisco and Seattle) has increased by over 40%. The real growth in purchasing power over the decade is only about 10-12%. A programmer in the US today can buy more software subscriptions and electronics, but it is more difficult to afford a home of his own compared to 2014.
The periphery of cheap labor
The East, especially the English-speaking East, has established itself as a suitable outsourcing destination. India, the Philippines, other Southeast Asian countries have created a supporting army of millions of low- and medium-skilled workers (routine coding, maintenance, QA, preparing data for AI training). They are well paid and in many ways live better than their Western counterparts.
In India, as of 2014, the starting salary for a good developer was ~$8,000 - $12,000. The standard is at the middle class level. Today, salaries for experienced professionals in product companies have jumped to $35,000 - $50,000. Due to the low prices of services and food in India, these amounts are equivalent to a standard of living of over $130,000 in the US. Real purchasing power has increased by nearly 60-70%.
An IT professional in India can often afford a personal driver, a domestic helper, and living in a luxury gated community-things that are out of reach for the average programmer in the U.S. The quality of the urban environment (e.g., traffic and pollution) remains poor, but it can be said that at least some of these people are moving from "middle class" to "social elite," affording luxury properties and personal services that are unthinkable for their counterparts in the West.
Although there are no reliable data, it seems that the situation in China is similar. The number of software engineers in the country is expected to reach about 7 million this year. If in 2014 the average annual salary was ~$12,000, today it is about $45,000 - $65,000. Salary growth (34.8% for the period 2019-2024 alone) has significantly outpaced inflation. The Chinese programmer today has about 50% higher purchasing power than 10 years ago. However, property prices in Shanghai and Shenzhen remain a huge barrier that limits the feeling of wealth.
The semi-periphery
In many countries of Eastern Europe and Latin America, a specific balancing zone has formed, which provides highly qualified personnel with cultural proximity to the West, but at a lower price. In this zone, the processes are developing even more complicated, because the trends are ambiguous. On the one hand, they have established themselves as suitable destinations for exporting low-risk jobs, on the other - new destinations are already established, on the third - new trends in job cuts are still having their effect. There are many factors and Latin America as a whole suffers more than Europe, due to the lower qualification of the staff and the lack of legal regulations on the labor market.
To avoid averaging for such a diverse region, we will only provide data for Bulgaria - a small country in Southeast Europe with a population of just over 6 million people. For the period 2014 - 2026, jobs in the sector increased from 45,000 to 120,000. The average annual salary - from 15,000 to 40,000 euros. Probably part of the change is due to the "lightening" of the sector, but it undoubtedly reflects global trends. The salary in employment in the last few years also did not bypass the local labor market. For 2026, the growth of jobs in less than 2% on an annual basis, the structure is shifting towards more experienced, at the expense of junior and low-skilled specialists.
Read: Part II - Thunder in Paradise https://www.anarchy.bg
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Source: A-infos-en@ainfos.ca
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