I’m sure you’ve heard: jobs are moving out of the United States, and it’s causing frustration among American workers. More and more jobs are becoming automated, but many of the remaining jobs that need human beings are being outsourced to countries where the labor force is less expensive. Technology jobs are some of the main jobs that are moving offshore.
I recently reviewed a study put out by the University of California, which said that up to 14 million jobs have the potential to be outsourced. Today’s guests, Monty Hamilton and Ingrid Miller from Rural Sourcing, Inc., have a great solution.
Rural Sourcing, Inc. is an IT outsourcing company, but instead of having staff located outside of the U.S., they have offices in U.S. cities that boast a less expensive cost of living than many of the major technology hubs. They employ 100-150 software developers at each of their centers and offer an attractive alternative to companies who are considering going oversees for their development.
Is It Worth It?
We’re capitalists, ladies and gentlemen. Globalization opens a lot of doors for businesses, and to be competitive on a global scale, American businesses need to stay viable. The choice to go rural with your outsourcing needs to make sense.
Rural outsourcing costs two, to two-and-a-half times as much as offshore outsourcing, but it costs about half what one would pay for those same services in a major U.S. city. The productivity from rural outsourcing, according to Monty, is three to four times what you would get from offshore outsourcing, which outweighs the cost differential. Rural Sourcing, Inc. has methods in place to increase productivity. For example, they pair workers together in teams with complementary skill sets. Ingrid says, “One can drop a lot of code, and the other can come in and finish that for them, and so they are literally finishing each other sentences, and helping each other with different expertise.”
Creativity is key, too. Monty says, “Today you get tons of creativity, it’s almost a mix between a scientist and an artist when you get a great software developer, so they can understand what the business needs to get done. They can write code so that it works on your tiny little mobile phone, and create something that’s a great user experience at the same time.” According to a study by Deloitte, 35% of respondents say that they measure the value of innovation in outsourcing relationships.
Quality of Life Means Fantastic Company Culture
These days, quality of life for employees is a key factor when they make decisions about where to work. We’ve covered that on CEO Exclusive in the past (Check out this article). In the past, people have had to choose between a “location or a vocation”, but rural outsourcing is changing that. Monty says, “We want to let them live where they want to live, and have a great career, and exciting place to work.” Being in a city like Albuquerque, rather than New York or Atlanta, allows employees to spend more time with their families, or on other activities that they love.
Rural Sourcing, Inc. attracts top-notch talent, many of whom have come from major companies like eBay, Disney, or Boeing, but who are interested in moving to cities where their quality of life can be better than what they could afford in major hubs.
Rural outsourcing is a great fit for employing millennials, as well. It allows for a strong apprentice model, and boasts a strong internship program, allowing students and those just out of college to learn directly from seasoned professionals. Larger, more risk-averse corporations might not offer the same kind of opportunities to new graduates, but getting a step up through Rural Sourcing, Inc. can offer an in to the technology industry for new grads. Monty says, “Our clients, they produce great life-saving drugs and cars and tissue and other things, but we produce people.”
A Rising Tide Lifts all Boats
American workers are top of mind these days, and now, two days after the 2016 presidential election, the world is braced to see what will happen with U.S. trade. Regardless of where you sit with the election results, it is clear that keeping jobs in the U.S. is top of mind for a lot of people. While rural outsourcing needs to make sense for an individual company, it can’t hurt to look at the national economy as well. As American companies, that matters to us. And if we can have both, it’s a win-win.
Of Rural Sourcing, Inc., Monty asks, “Can we provide a better economic value than your alternatives? We think we can…Now, at end of the day, if we can do that, then honestly, I think we and our clients both go home at night, and sleep a little better, because you’re creating jobs, you’re creating careers, you’re feeding families.”
Rural outsourcing might not be right for everyone, but it provides a solid solution that presents a strong option for many companies, while filling an important need for American workers as well.