There are more dysfunction IT companies out there as you imagine. As freelancer there is a high chance to get engaged by a dysfunctional company. Some times it's possible to determine it before the engagement, some times not. In my working years I worked at least for three dysfunctional companies and I avoid to work for one.
- First rule for dysfunctional companies, don't do that. It's pain to work there.
- Second Rule: If working for a company and you find out that this company is dysfunctional, run, run fast, run faster. Leave the company because such companies can damage you.
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