Taxation, Tech Employment and Purchasing Power Trends in the West: Why Corporate Taxes Fell 40% While Employee Taxes Rose
Western corporate taxes dropped from 45% (1980s) to 21% (2024) while employee effective rates rose via bracket creep. Tech workers in West relatively safe but facing offshoring, RTO mandates, weakened unions—strategic paths remain viable.
Understanding some macro-factors that influence our day-to-day condition as tech workers.
In the past 40 years, a surprising trend has emerged in the West: corporate taxes have significantly dropped.
This fact runs counter to the popular narrative that the West is more tax-heavy compared to emerging economies in Asia, UAE, or Eastern Europe. Let's delve into some key facts and implications of this shift.
Understand your position in the market →
The Corporate Tax Revolution
Here are some important points to consider:
1. While corporate taxes have indeed reduced in the West, they're still often lower in emerging economies.
| Region | 1980s Corporate Tax | 2024 Corporate Tax | Change | 
|---|---|---|---|
| USA | 46% | 21% | -54% | 
| UK | 52% | 25% | -52% | 
| Germany | 56% | 30% | -46% | 
| France | 50% | 25% | -50% | 
| Average Western | 48-52% | 23-27% | -48% | 
vs Emerging:
- Singapore: 17%
- Ireland: 12.5%
- UAE: 9% (new, was 0%)
- Poland: 19%
- Georgia: 15%
2. As corporate taxes decreased, income taxes for employees have effectively increased.
Even if tax rates remained nominally the same, inflation has pushed more middle-class workers into higher tax brackets. This means you're likely paying the same taxes that someone earning much more would have paid decades ago - essentially, a tax increase for employees.
The bracket creep effect:
| Year | "Middle Class" Salary | Tax Bracket Threshold | Effective Tax Rate | 
|---|---|---|---|
| 1980 (USA) | $25k | Top bracket at $200k (70%) | 18-22% | 
| 2024 (USA) | $80k (inflation-adjusted) | Top bracket at $578k (37%) | 28-32% | 
Earning the same REAL income = paying 10% more in taxes (due to bracket structure + eliminated deductions).
3. Alongside higher effective taxes, the cost of living has risen dramatically, further reducing purchasing power for the average worker.
Real wage stagnation (inflation-adjusted):
| Country | 1980 Median Wage | 2024 Median Wage (Real) | Change | 
|---|---|---|---|
| USA | $47k (2024 dollars) | $48k | +2% in 44 years! | 
| UK | £38k (2024 pounds) | £39k | +3% | 
| Germany | €42k (2024 euros) | €44k | +5% | 
But costs rose FASTER:
- Housing: +180% (above inflation)
- Education: +240%
- Healthcare: +150%
Net result: Same inflation-adjusted salary buys 30-50% less than 1980.
Compare modern purchasing power →
So, Why Are We Poorer Despite Progress?
The decrease in corporate taxes has primarily benefited business owners in the West, especially those in growing fields like IT. These business owners have become significantly wealthier than their counterparts from decades ago.
The Wealth Transfer
Where the gains went:
| Economic Class | 1980-2024 Wealth Change | Share of Growth | 
|---|---|---|
| Top 1% (business owners, executives) | +300% to +800% | 70% of all growth | 
| Top 10% (professionals, managers) | +80% to +150% | 20% of growth | 
| Middle 50% (employees, workers) | +15% to +30% | 8% of growth | 
| Bottom 40% | -10% to +10% | 2% of growth | 
While the West has created substantial wealth in recent decades, this wealth has been largely captured by the richest in society, leaving the middle class and employee class comparatively poorer.
Tech Workers: A Special Case
Some fields have been relatively immune to this trend, particularly key specialized employees who have contributed significantly to these profitable businesses. Silicon Valley engineers and their international counterparts are prime examples, often enjoying good pay and strong purchasing power.
Tech worker salary evolution (inflation-adjusted):
| Year | Senior SWE Salary | Median Worker | Premium | 
|---|---|---|---|
| 1990 | $80k (2024 dollars) | $45k | +78% | 
| 2000 | $110k (dot-com) | $48k | +129% | 
| 2010 | $120k | $47k | +155% | 
| 2020 | $180k (peak) | $48k | +275% | 
| 2024 | $160k (correction) | $48k | +233% | 
Tech workers went from 2x median income → 4x median income over 30 years.
However, even these tech workers face challenges:
1. Despite high salaries, they're often poorly rewarded relative to the value they generate.
Value capture analysis:
| Company | Revenue/Engineer | Engineer Comp | % Captured by Engineer | 
|---|---|---|---|
| $2.1M | $300k | 14% | |
| Meta | $2.5M | $350k | 14% | 
| Microsoft | $1.8M | $280k | 16% | 
| Amazon | $800k | $220k | 28% (lower due to low-margin business) | 
Engineers capture 14-28% of value they generate. The rest goes to:
- Company profits (50-60%)
- Other costs (20-30%)
- Sales/marketing (10-15%)
2. They face very high tax rates.
Software engineer effective tax burden:
| Location | Gross Comp | Income Tax | Payroll Tax | Total Tax | Take Home | 
|---|---|---|---|---|---|
| San Francisco | $300k | $108k (36%) | $12k (4%) | $120k (40%) | $180k | 
| New York | $280k | $98k (35%) | $10k (3.5%) | $108k (38.5%) | $172k | 
| London | £200k | £73k (36.5%) | £9k (4.5%) | £82k (41%) | £118k | 
| Munich | €200k | €74k (37%) | €9k (4.5%) | €83k (41.5%) | €117k | 
40%+ tax rates common for high-earning tech workers in HCOL.
3. Rising costs of living affect them too, albeit less severely than workers in less profitable fields.
Tech worker cost burden (San Francisco, $300k salary):
| Category | Annual Cost | % of Gross | 
|---|---|---|
| Housing | $50k | 17% | 
| Taxes | $120k | 40% | 
| Healthcare | $8k | 3% | 
| Food | $15k | 5% | 
| Transport | $12k | 4% | 
| Childcare (if family) | $30k | 10% | 
| Total costs | $235k | 78% | 
| Savings | $65k | 22% | 
Even on $300k, only saving $65k/year (vs $100k+ possible in LCOL with $150k income).
4. Recent shifts in big tech hiring practices have introduced new pressures.
Post-COVID Market Shifts
Following COVID-19 and rising interest rates, tech companies have become more cautious with spending. They're cutting excess benefits and perks, demanding more from employees, and increasingly offshoring work.
The New Reality
Changes in tech employment (2019 vs 2024):
| Factor | 2019 (ZIRP Era) | 2024 (High Rates) | Impact on Workers | 
|---|---|---|---|
| Hiring pace | Aggressive growth | Conservative/shrinking | -60% new roles | 
| Compensation | Rising 15-25%/yr | Flat to -10% | Stagnant pay | 
| Perks | Lavish | Reduced | Lower total value | 
| WFH policy | 10% remote | 50% hybrid (forced RTO) | Less flexibility | 
| Job security | Very high | Medium (layoff risk) | More anxiety | 
| Offshoring | Limited | Accelerating | Competition | 
This trend is driven by the need to remain competitive in a global market. If Western companies don't employ these efficiencies, they risk losing market share to more cost-effective global players, such as Chinese IT corporations.
Competitive pressure examples:
Scenario 1: US Company vs Chinese Competitor
- US company: Average engineer cost $250k (loaded)
- Chinese company: Average engineer cost $80k
- Same product, 30% lower price from Chinese company
- Result: US company must cut costs or lose market
Scenario 2: European SaaS vs Global Remote Team
- European co: €150k/engineer in Berlin
- Competitor: $120k/engineer remote team (Poland/India)
- 20% cost advantage for competitor
- Result: European co considers offshore or remote
This is capitalism working. Companies that don't optimize will be out-competed.
Understand geographic arbitrage →
Current State: Tech Workers in the West
For now, tech workers in the West are still relatively "safe" and can enjoy good purchasing power, especially if they're highly skilled and comfortable with intense work environments. However, conditions for such workers may become tougher in the future.
The Two-Tier System Emerging
Tier 1: Protected workers (for now)
| Role Type | Why Protected | Risk Level | Timeline | 
|---|---|---|---|
| R&D / AI/ML | Cutting-edge, need top 1% | Low | Safe 10+ years | 
| Senior+ IC (Staff/Principal) | Deep expertise, hard to replace | Low-Medium | Safe 5-10 years | 
| Management | On-site presence required | Low | Safe long-term | 
| Specialized (security, infra) | High trust, compliance | Low-Medium | Safe 7-15 years | 
Tier 2: At-risk workers
| Role Type | Why At Risk | Risk Level | Timeline | 
|---|---|---|---|
| Junior/Mid full-stack | Generic, easily offshore | High | 2-5 years | 
| QA/Test | Automation + offshore | Very High | 1-3 years | 
| DevOps (basic) | Standardizing, offshoring | Medium-High | 3-7 years | 
| Support/integration | First to offshore | Very High | 0-2 years | 
Your protection level = specialization depth + seniority + location bargaining power
Strategic Paths Forward
To manage this potentially negative trend, tech workers in the West have two main strategies:
Strategy 1: Transition from Employee to Freelancer
Accessing more favorable taxation worldwide.
Employee vs Freelancer tax comparison:
| Status | Location | Gross Income | Tax Rate | Net Income | Savings | 
|---|---|---|---|---|---|
| W-2 Employee | San Francisco | $250k | 42% | $145k | vs Baseline | 
| Freelancer | San Francisco | $200k | 35% (+ deductions) | $140k | -$5k ❌ | 
| Freelancer | Poland | $180k | 12% (IP Box) | $158k | +$13k ✅ | 
| Freelancer | Georgia | $150k | 1% | $148k | +$3k ✅ | 
Key insight: Freelancing only helps if ALSO optimizing location. Freelance in HCOL = worse (no benefits, similar tax).
Optimal strategy:
- Get W-2 experience (2-5 years, build skills/network)
- Transition to high-paying remote freelance
- Relocate to LCLT country
- Enjoy 10-20% tax vs 40%+ as W-2 employee
Learn freelance optimization →
Strategy 2: Trade Pay for Remote Work, Live Cheaper
Allowing money to go further in cheaper locations.
The math:
Scenario A: On-site HCOL
- Salary: $250k
- Tax (40%): -$100k
- Living (SF): -$90k
- Savings: $60k
Scenario B: Remote from LCOL
- Salary: $160k (36% cut)
- Tax (12%): -$20k (LCLT structure)
- Living (Poland): -$30k
- Savings: $110k (+83%!)
You earn 36% less but save 83% more.
Quality of life:
- Larger apartment (100m² vs 60m²)
- Can afford housekeeper (€20/hr vs $60)
- Dining out comfortable (€30 vs $80)
- Less financial stress (lower burn rate)
Why Tech Workers Will Continue to Be Employed in the West
Despite these challenges, tech workers will continue to be employed in the West for several reasons:
1. The West Remains a Large, Rich Market
Market size matters:
| Region | Tech Spending | % of Global | Importance | 
|---|---|---|---|
| North America | $1.9T | 36% | Huge market | 
| Western Europe | $1.1T | 21% | Second largest | 
| China | $850B | 16% | Growing fast | 
| Rest of World | $1.4T | 27% | Fragmented | 
Companies want engineers who understand the market they serve.
2. Proximity to Market Advantage
There's an advantage in having employees who personally understand the market they're building for.
Examples:
- European e-commerce (understanding VAT, GDPR, local preferences)
- US fintech (SEC regulations, banking culture)
- UK insurance (FCA compliance, British risk appetite)
Offshore engineers can code, but struggle with context:
- Why do Germans prefer bank transfer over credit cards?
- Why is US healthcare so complex?
- What are Nordic work culture norms?
Local engineers know implicitly what offshore needs explained.
3. The West Offers Stability
Attractive to business owners and investors:
| Factor | Western Advantage | Emerging Market Risk | 
|---|---|---|
| Rule of law | Strong, predictable | Variable | 
| IP protection | Excellent | Weaker | 
| Political stability | High | Medium-Low | 
| Contract enforcement | Reliable | Can be challenging | 
| Regulatory environment | Clear (if complex) | Unpredictable | 
| Currency stability | Stable | Can be volatile | 
Companies keep core operations in West for risk management.
4. Abundance of Skilled IT Workers
The West offers skilled IT workers, both technically and in terms of communication skills.
What Western engineers have:
| Skill Type | Western Average | Offshore Average | Gap | 
|---|---|---|---|
| Technical (coding) | High | High | Small | 
| System thinking | Very High | High | Medium | 
| Communication (English) | Native/Fluent | Good but accented | Medium | 
| Autonomy | High (less hand-holding) | Medium (more guidance needed) | Medium | 
| Cultural fit | Natural | Learned | Medium | 
| Business acumen | Higher | Lower | Large | 
For complex projects requiring autonomy and business understanding, Western engineers still win.
But gap is closing 5-10% per year as offshore talent gains experience.
The Labor Union Factor
It's worth noting that labor unions worldwide have weakened in recent decades, with IT unions historically being particularly weak. This further erodes the leverage that tech workers have in negotiations.
Union membership decline:
| Country | 1980 Union % | 2024 Union % | Change | 
|---|---|---|---|
| USA | 23% | 10% | -57% | 
| UK | 51% | 23% | -55% | 
| Germany | 35% | 17% | -51% | 
| France | 18% | 11% | -39% | 
Tech workers specifically: 2-5% unionized (vs 10-23% general workforce)
Why tech workers don't unionize:
- High individual bargaining power (easier to job hop than organize)
- Libertarian/individualist culture
- Fast-moving industry (unions seen as slow/bureaucratic)
- Stock compensation (aligned with company success)
- Age demographics (young workers less pro-union)
But this means:
- ❌ No collective bargaining
- ❌ No protection from mass layoffs
- ❌ No coordination against RTO mandates
- ❌ Each engineer negotiates alone vs HR machinery
Companies love this. Divide and conquer works.
Build personal leverage instead →
This Is Why I Run My Job Board and Resources
To provide tech workers with a private alternative to labor unions and a tool to gain leverage and optimize their situation in the market and the world.
What Traditional Unions Provide
- Collective bargaining
- Job protection
- Information sharing
- Negotiation leverage
What My Platform Provides (Different Approach)
1. Information asymmetry reduction
- Salary data (what companies actually pay)
- Savings rates by location
- Market trends visibility
- Company reputation tracking
2. Individual leverage tools
- Job board (access to opportunities = negotiating power)
- Geographic arbitrage strategies (break location lock-in)
- Remote work paths (more options = more leverage)
- Skill development guidance
3. Community knowledge
- Real experiences from engineers
- Anonymous data sharing
- Tactical advice (not bureaucratic)
- Fast-moving (adapt to market)
Traditional union: "We'll negotiate for all of you" My approach: "Here's the information and strategies to negotiate for yourself"
Both valid, different philosophies. Tech workers seem to prefer individual empowerment over collective action.
Despite Challenges, Valid Career Paths Remain
I believe that the paths I help engineers navigate remain valid:
Path 1: Big Tech Positions in Europe
Still good because:
- ✅ Compensation remains strong (€100k-€250k+)
- ✅ Learning and growth opportunities
- ✅ Geographic flexibility (transfers possible)
- ✅ Safe from worst offshoring (senior roles, specialized)
Challenges:
- ⚠️ RTO mandates increasing
- ⚠️ Layoff risk exists (1-2% annually)
- ⚠️ Slower comp growth than 2010-2021
Best for: Early/mid career engineers building credentials and skills
Path 2: Good Tech Jobs in Switzerland
Still excellent because:
- ✅ Highest absolute savings in Europe (€60k-€100k+/year)
- ✅ Stable, secure environment
- ✅ Excellent quality of life
- ✅ Low taxes (~20% effective)
Challenges:
- ⚠️ Expensive (but salaries compensate)
- ⚠️ Competitive to enter
- ⚠️ Some offshoring even in Switzerland
Best for: Accumulation phase (3-7 years), building wealth fast
Path 3: High-Paid, Geo-Arbitraged Remote Jobs
Increasingly attractive because:
- ✅ 10-15% tax rates possible (vs 40%+)
- ✅ 50-70% lower living costs
- ✅ 60-85% savings rates achievable
- ✅ Protection from RTO mandates
- ✅ Geographic freedom
Challenges:
- ⚠️ Harder to find initially (requires strategy)
- ⚠️ Less career visibility (for promotions)
- ⚠️ Must manage own benefits
Best for: Mid/senior engineers, FIRE-focused, lifestyle optimizers
The Macro Trend: What to Expect
Next 5-10 years prediction:
| Factor | 2024 | 2030 Prediction | Impact | 
|---|---|---|---|
| Offshoring % | 30% of roles | 50-60% | More competition | 
| Remote work | 50% hybrid | 60-70% (but less pure remote) | Mixed | 
| Compensation | Flat/slight down | Flat to +10% | Stagnant | 
| Tax burden | 35-42% | 37-45% | Increasing | 
| Cost of living | High | Higher | Decreasing purchasing power | 
| Engineer leverage | Medium | Medium-Low | Weakening | 
But opportunities exist:
- Geographic arbitrage (gap between HCOL and LCOL salaries staying wide)
- Specialization (R&D, AI/ML remain safe)
- Entrepreneurship (easier than ever with AI tools)
- Consulting (experienced engineers can command high rates)
Conclusion
The macro trends are clear:
❌ Corporate taxes down 40-50% since 1980s (wealth to owners) ❌ Employee taxes up 10-15% effective (bracket creep + fewer deductions) ❌ Real wages stagnant for 40 years (median worker) ❌ Purchasing power down 30-50% (costs rose faster than wages)
But tech workers are different:
✅ Salaries rose 200-300% vs general workforce (good positioning) ✅ Still in demand (though more competitive) ✅ Geographic arbitrage possible (unique to remote work) ✅ Multiple strategic paths available (big tech, Switzerland, remote LCLT)
The golden era (2010-2021) is over. The silver era (2024+) requires:
- More strategic thinking (not just "join Google and chill")
- Geographic optimization (can't ignore location anymore)
- Continuous skill development (specialization matters)
- Understanding macro trends (so you can position accordingly)
Tech workers who adapt will thrive. Those waiting for 2019 to return will struggle.
The paths exist. The information is available. The question is: Will you take action?
Start optimizing your career →
Frequently Asked Questions
Why did corporate taxes drop while employee taxes rose?
Political economy explanation:
Corporate tax cuts happened because:
1. Capital mobility (companies can relocate easily)
- If US taxes corps 40%, Ireland taxes 12.5% → companies move to Ireland
- Race to the bottom: Countries compete for corporate HQ
- Result: All countries cut rates to stay competitive
2. Lobbying power
- Corporations spend $3-5B/year on lobbying (US alone)
- Individual workers spend $0 on lobbying
- Result: Tax policy favors corporations
3. "Trickle-down" narrative
- Politicians sold: "Lower corp tax → more investment → more jobs"
- Reality: Most gains went to shareholders/buybacks
- Jobs grew modestly, wages stagnated
Employee taxes rose (effectively) because:
1. Bracket creep
- Tax brackets didn't keep pace with inflation
- 1980: Top bracket at $200k (70%)
- 2024: Top bracket at $578k (37%) but...
- Middle class pushed into higher brackets over time
2. Eliminated deductions
- Mortgage interest (limited)
- State/local tax deductions (capped at $10k)
- Misc deductions (gone)
- Effective rate rose even if nominal rate stayed same
3. Payroll tax increases
- Social Security tax cap rose from $25k (1980) to $168k (2024)
- More income subject to payroll tax
- Added 1-2% effective burden
4. Political calculation
- Employees can't relocate to Ireland for lower taxes
- Harder to hide employee income (W-2 vs corp structures)
- Easier political target
The result: Wealth transferred from workers to capital owners over 40 years.
This is why understanding tax optimization (freelancing in LCLT) is so powerful for tech workers - you can capture some of the benefits corporations have had for decades.
Are tech workers really at risk or is this fear-mongering?
Reality check: Risk exists but it's nuanced, not catastrophic.
The data:
Offshoring growth (% of tech roles offshore):
- 2015: 15%
- 2020: 25%
- 2024: 35-40%
- 2030 (projected): 50-60%
Tech worker job security by role type:
| Role | 2024 Risk | 2030 Risk | Notes | 
|---|---|---|---|
| Junior full-stack | Medium (30%) | High (60%) | Most offshorable | 
| Mid-level generic | Low-Medium (20%) | Medium (40%) | Offshoring accelerating | 
| Senior specialist | Low (10%) | Low-Medium (20%) | Harder to replace | 
| Staff+ IC | Very Low (5%) | Low (10%) | Safe barring recession | 
| R&D / AI-ML | Very Low (2%) | Very Low (5%) | Cutting-edge = safe | 
| Management | Very Low (3%) | Low (8%) | On-site presence valued | 
What "risk" means:
- NOT: "You'll be unemployed"
- YES: "Competition increases, wages stagnate, need to be strategic"
Comparison to other professions:
| Profession | Offshoring Risk | Automation Risk | Total Risk | 
|---|---|---|---|
| Software Engineer | Medium (35%) | Low (10%) | Medium (45%) | 
| Accountant | High (60%) | High (30%) | Very High (90%) | 
| Lawyer | Low (15%) | Medium (20%) | Low-Med (35%) | 
| Doctor | Very Low (5%) | Low (10%) | Very Low (15%) | 
| Truck Driver | Low (10%) | Very High (60%) | High (70%) | 
| Retail Worker | Medium (30%) | High (40%) | High (70%) | 
Software engineering is still relatively safe compared to most professions.
The "fear-mongering" critique is valid IF:
- You're specialized (not generic full-stack)
- You're senior+ (not junior)
- You're in R&D/AI (not maintenance)
The "fear" is justified IF:
- You're junior generic developer
- You're in mature product team
- You refuse to adapt/specialize
My take: Not fear-mongering, but directionally accurate trend. Smart engineers will adapt (remote work, specialization, geo-arbitrage) and thrive. Complacent engineers will struggle.
Proof it's not catastrophic: Tech unemployment is still only 3-4% (vs 4-5% general population). We're not in crisis, we're in transition.
Should I specialize or stay generalist to protect against offshoring?
It depends on your career stage and goals, but increasingly: specialize.
The generalist vs specialist debate:
Generalist advantages (weakening):
- ✅ More job opportunities (can apply to more roles)
- ✅ Flexibility (can pivot between teams/companies)
- ✅ Easier early career (entry-level jobs prefer generalists)
Generalist disadvantages (growing):
- ❌ Easily offshorable (generic full-stack = commoditized)
- ❌ Lower compensation (market rate vs specialist premium)
- ❌ More competition (everyone is "full-stack")
- ❌ Slower career growth (harder to reach senior+ as generalist)
Specialist advantages (growing):
- ✅ Protected from offshoring (hard to find + trust required)
- ✅ Higher compensation (+30-80% vs generalists)
- ✅ Faster career growth (specialist → staff+ easier)
- ✅ More leverage (fewer people can do what you do)
Specialist disadvantages:
- ❌ Fewer total jobs (but less competition for those jobs)
- ❌ Risk if specialization becomes obsolete (rare but possible)
- ❌ Harder to pivot (deep expertise = less flexibility)
Strategic recommendation by career stage:
Years 0-3: Be a T-shaped generalist
- Broad exposure (frontend, backend, cloud basics)
- But start developing depth in 1 area (your "vertical")
- Why: Need to understand the full stack to know what to specialize in
Years 3-6: Choose specialization and go deep
- Pick one of: Distributed systems, ML infrastructure, security, frontend perf, data engineering, DevOps/SRE
- Become known for that thing
- Why: This is when specialist premium kicks in (senior roles)
Years 6-10: Become T-shaped specialist
- Deep expertise in 1-2 areas (your specializations)
- Maintain broad understanding (full stack context)
- Why: Best of both worlds - can lead projects but not pigeonholed
Years 10+: Double down on niche
- Become top 1-5% in your specialization
- Consult, lead, architect, or start company
- Why: This is where real leverage is
Offshoring protection by specialization:
| Specialization | Offshoring Risk | Why | 
|---|---|---|
| ML/AI Infrastructure | Very Low (5%) | Cutting edge, need top talent | 
| Distributed Systems | Very Low (10%) | Complex, high trust needed | 
| Security/Cryptography | Very Low (10%) | Compliance, trust critical | 
| Frontend Performance | Low (15%) | User-facing, context critical | 
| DevOps/SRE | Low-Medium (25%) | Some offshore, but on-call culture | 
| Data Engineering | Medium (35%) | Standard pipelines = offshorable | 
| Generic full-stack | High (60%) | Most offshorable | 
| QA/Testing | Very High (80%) | Already heavily offshored | 
How to choose specialization:
1. Market demand (what's hiring?)
- Check job boards: What specialized roles have high comp?
- LinkedIn: What skills have most recruiter inbound?
- Currently hot: AI/ML infra, distributed systems, security
2. Personal interest (what energizes you?)
- Can't fake passion for 10+ years
- Pick something you geek out about
- Interest → skill → leverage
3. Company context (what's valued where you work?)
- Specialize in what your company needs
- Become "go-to person" for X
- Internal leverage → external opportunities
4. Offshoring resistance (what's hard to offshore?)
- High-trust (security)
- Customer-facing (context matters)
- Cutting-edge (no offshore talent yet)
- Complex (takes years to learn)
Bottom line: Early career = generalist, mid/late career = specialist. Offshoring trend makes specialization increasingly mandatory for job security and comp growth. Start choosing your niche by year 3-4 of career.
See our career growth guide for detailed specialization strategies.