December 5, 2011
Rural Outsourcers’ Vs. Bangalore
September 27, 2010
The Business Week Article Rural Outsourcers’ Vs. Bangalore tells us about outsourcing to rural areas in the United States. There are several fast growing Information Technology companies based in remote areas of the United States. They appear to be a favorable alternative to most typical outsourcing beyond our own shores. The more removed they are from big cities, the more cost effective they become. One benefit is that these towns often have a lower cost of living, which is ideal. Clients feel that these in-state companies are easier to deal with than India. There are now about 20 of these domestic IT companies who thrive off the current dissatisfaction and challenges found with their India counterparts. .
Several of these outsourcing companies such as Saturn Systems, Rural Sourcing and Onshore Technology Services have reported they have shown a double or even triple annual revenue growth. They say that because of inherent language barriers and culture differences, the advantages of home-sourcing offers benefits, which make newer companies an “attractive alternative”. Saturn understands that outsourcing out of the country may appear more cost effective, but when you consider funds spent for training and geographic logistics, the costs are higher than you would think. Also, we need to consider that Chinese and Indian workers are now pushing for higher wages. Onshore Technologies boasts that they take dislocated and underemployed workers from other business sectors and make software developers out of them. However, the biggest challenge appears to be creating and maintaining a large enough skilled workforce. It is believed that doing so from scratch will be the most cost effective way.
Today India is the one of the top locations for many oversea outsourcing. Mostly, due to its low cost, and abundant supply of well trained, and English–speaking...
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