#calexit (California Exit)

With recent developments in United States politics, few regional groups are not comfortable with it. Situation goes even worse in California (sixth largest economy in the world) as people came out to opt against union.

California has central software hub at Silicon Valley, not to mention giants like Microsoft, Apple & Google have their headquarters at California. Apart from these many small to medium scale software companies are operational at Silicon Valley.

#calexit

With such extreme move, surely it will affect the software industry. Bigger companies may not get affected much but it mighty be tough time for smaller companies as in time of financial crunch (or similar situation) it will be difficult to manage in-house teams.

#calexit prevention measures:

California was already scheduled for independence referendum in 2019 but things got drastically changed due to political environment. Many small-to-medium software companies foresighted this and already start outsourcing their work to offshore companies. This helped them to utilized offshore talent and gave them opportunity to limit their staff only for marketing (as development tasks are outsourced to offshore teams), hence they successfully reduce their operational cost by 80%.

Again the bigger giants will sustain any un-expected development, whereas small-to-medium size software companies should start to explore options for their survival.

How #calexit Will Effect Small-to-Medium Software Companies