U.S.-based Homeshoring an Option? - Slide 6

Email     |     Share  
1 | 2 | 3 | 4 | 5 | 6 | 7
Next Per Capita Income-6 Next

Per Capita Income

The cost of labor in non-metro areas is 60 percent to 70 percent of the cost in metro areas, making rural sourcing an economically attractive option.

IT Business Edge contributor Don Tennant spoke with Monty Hamilton, CEO of Atlanta-based Rural Sourcing Inc., shortly after the 2010 Outsourcing World Summit last month. Hamilton presented at the event, where he found high receptivity to the idea of outsourcing IT work to low-cost, non-urban areas in the U.S. as an alternative to offshore outsourcing.

Hamilton said RSI grew 300 percent last year, with outsourcing centers in Jonesboro, Ark., and Greensboro, N.C. His goal is to open 30 centers over the next five to six years, and his current focus is on Georgia and Iowa. RSI currently has about 15 clients, ranging from start-ups to Fortune 500 companies. But the sweet spot, Hamilton said, is the midmarket.

“Those are the companies that are primarily going to have U.S.-based businesses,” he said. “They’re not going to have the patience or wherewithal or investment dollars to go make an offshore operation in India work. But they’re going to have to figure out how to stretch their IT dollars and be more cost-efficient. For them, outsourcing is something they haven’t done a lot, or even looked at in the past.”

 

Related Topics : CDW, Resellers, Asset Management, Technology Evaluation, Vendor Management

 
More Slideshows

mobile70-190x128 How to Build Business Value with a Digital Supply Chain

Embracing a digital supply chain not only drives greater agility, efficiency and innovation, it also creates business advantage for companies. ...  More >>

Slideshow Top Concerns in Software Supply Chain Management

Software development organizations are frequently stuck in the middle of conflicting business priorities, creating the perfect storm....  More >>

Metrics and Measurements: 10 'Silver Bullet' Best Practices Metrics and Measurements: 10 'Silver Bullet' Best Practices

Transform your metrics programs and create a positive impact on IT services delivery....  More >>

Subscribe to our Newsletters

Sign up now and get the best business technology insights direct to your inbox.