If you take a look at US freelancers hourly rates and compare them to those from other countries you’ll find… it’s a global market
In short – there’s not enough freelancers (IT people in general) in the US and Europe so clients and agencies are reaching out for international talent. Once you as a freelancer (or an agency / software house) go down that path you get some references and your hourly rate goes up to US/Western European level.
And why not – talent is a talent. No matter where you live.
Of course there are always new, hungry players with lower rates but they learn very quickly that Talent has its price. And if they don’t there’s something wrong…
Yours Truly,
Co-founder of Spark Solutions (Ruby on Rails & Spree Commerce Developers) and talent enthusiast
PS. Check out our CTO as a service offering to design your product development strategy.