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mattbrewsbytes • today at 5:16 PM • 1 reply • view on HN

1. Risk - you throw an SLA on services and can point fingers when shit hits the fan

2. Circular agreements - you get them to sell your goods/services in the region of their home country

3. These count as "Services" on the P&L and provide massive tax advantages to the company because these aren't treated as labor costs.

This may be from an old context in my brain since I worked with some of those companies, so those reasons may have changed or impact may have with various regulations, etc.


Replies

ethbr1 • today at 5:22 PM

Addendum to risk: larger companies can throw bodies at escalated issues.

Good luck trying to get a 6 person shop with a full calendar of other-customer work to suddenly prioritize a show-stopping bug that's only affecting you.