@vbsaltydog: I get what you mean, tho’ I personally think that there is one big flaw in your logic; some of guys before stated it as well.
I have had for 3 years software development company. Had at one point 8 programmers working in the office. I came across many different clients, different projects, wishes, demands, prices… It basically all comes down to this;
What is the amount of money that I consider to be truthfully honest for the tasks that I / my company can achieve? I also started on a ‘low budget’ premises, from around 12 euro’s per hour. Only thing I got from it were a bunch of ‘clients’ that wanted E-bay ‘look-a-like’ sites for money that could not even buy decent lunch for two persons. I have had not a single serious client with my asking price of 12 euro’s per hour.
Then I did some talking to other guys in the branch, done a lot of research and piked my price to 30 euro per hour. Some clients started showing. Among them I would say were about 60% legit clients and 40% of clients that you would rather not have as a client. Some time later I went up to 50 euro per hour and it was only then that I started getting serious clients who knew what they wanted and _had_ budget for it.
And let me tell you, in my personal and professional opinion - I would always rather do business with such clients who know what they want and who are well aware that such demands come with certain price (and indeed they are willing to pay for it).
Basically, start from your self; if you were in a need for a new car, you could buy cheapest car in the world, which is accidentally built in India. It would set you back only about 2,500 euro. But on the other hand, you know as well that designing, testing, development, research, material costs, personnel costs are way higher then the value of the car. So that car - must be rubbish. Would you then rather pay 15,000+ euro’s and get the car you really need / want, that is safe, reliable, well build - or not? If you really _need_ the car - you would also have 15k to buy it. If you do not need it, well then probably 2,500 euro car would do you as well.
Same is with programmers, freelancers and / or companies. If you are serious in what you are doing, then all those $8 per hour programmers are no threat to you at all - not on any bases. I have had clients (when I raised my price to 30 euro) that went away and took $8 per hour programmers. A lot of them came back after some time to me, almost bagging me to continue development of their project. I have only once made mistake and agreed to it - but never again.
Finally, it is not so known, but Indian business culture _does not_ allow them to say ‘No’. Meaning, whichever request client has, they must accept it - even when they very know it is (technically or project wise) not possible! This makes it really tricky. You can even test this, by setting an example project which with current standards can not be done. And they will accept it. As the project develops, they will start sending rubbish code, practically forcing you to abandon project.
Second thing is, that they are not really ‘flexible’ in thinking with their own heads. They have very rigid hierarchical structure which does not allow for the end programmers to think on their own. I have seen with my own eyes couple of example whereby client has had minor (logical) errors in the project documentation. For example, in the back-end only Admin should _not_ be able to log in. Of course, word ‘_not_’ is misplaced and does not belong there. However, Indian programmer may not raise his voice about this. Result is - everyone can log in the back-end - except admin. Brilliant! Lived up to the specs.
Anyway, to conclude - I do understand your anger and way of thinking. But again, just keep pushing in being good in what you do and such matters should not affect you, your business nor your financial existence on the longer run. And beside, client that is not willing to pay someone more then $100 for E-bay website, well I do not want him anyway. World is luckily large enough place for everyone to find what they are looking for.
PS. In my line of job I came across software development companies that charged immense amount of $250+ per hour! And crazy enough, they have had more then plenty clients. Those clients are then again multinationals that are doing business with them only on the premises that rest of the world may know, that they can afford such high prices! Again, for everybody - something.