Outsourcing to Rural America
andy753421 writes "Wired is running an article about 'Rural Sourcing, an IT company that outsources not to India or Mexico, but rural America.' The company targets IT workers in rural location due to lower costs of living, 'The company charges $35 to $50 per hour for IT expertise, which may cost around $100 in New York City. While this is no match for outsourcing rates in India, clients benefit from local accents and similar time zones -- not to mention the absence of stigma sometimes attached to farming jobs out to foreign countries.' The article also points out several other innovative attempts at outsourcing such as Lakota Express and Seacode, which was previously covered on slashdot."
On my last job, wirelessing an apartment and "dealing with" schlepping to a cheap Brooklyn store to buy the family a laptop plus a little de-spywaring, I got paid $600 cash money. Sure the work I did might be worth under $20 in sweat, but one extra-sharp demand in Manhattan is paying for trustworthiness. I've networked and have a reputation with clients for getting the job done and not stealing any silverware. Manhattan pays more not just because people can afford to, there is a greater demand to protect their assets. Got some nice silverware here. And some virgins. Err, withdrawn---got some silverware.
I'd give anything to be outsourced to someplace I'd want to live, say New Mexico, Northern California. I like making a lot of money, but it just doesn't go that far in New Jersey, where property taxes are out of control and there are just too many people. I'd take a pay cut to live in some place that was quieter, with a lower cost-of-living. And in this day-and-age of telecommuting, why not? I suspect it would save companies a fortune just by not having to have huge amounts of office space and the environment would certainly be served by getting a large number of commuters off the road.
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I moved to Arkansas from the Washington D.C. area several years ago. My plan was to find a job as a software developer here but after looking for quite a while, I couldn't find anything that really interested me. I ended up moving to Mexico where I knew I could find some work (and also the slow paced lifestyle I was looking for). I did some work for various companies for a while and after then was contacted by some old co-workers about some contract work. The only catch was I had to move back to the U.S. The good news was I didn't have to move back to the D.C. area, where they were based.
So, I moved back to Arkansas and for 2 years I've been contracting out to one the largest software companies in the country. My rates are very competitive because my cost of living is far lower than what it would be in the D.C. area. I'm paying less for a large 3 bedroom house with a fenced in yard than I was paying for a small 2-bedroom apartment there. I get to have the slow-paced lifestyle that I was looking for and despite making less than I was in D.C., I'm saving quite a bit more.
Our group is also outsourcing to a company India and I'm under the impression that my rates are actually fairly competitive with theirs. I suspect there are a large number of people in this area that would work for rates that would be impossible to find in the D.C. area or other larger cities.
As one such person, (one who has been hired to work in a small town away from any large metropolitan areas.) I have to say it's pretty nice. At first I was worried that the change in lifestyle from a big metroplex (DFW) to East Bumblefuck, TX would suck, but it's turned out to be a lot nicer than I thought. More relaxed pace of life, less pollution, etc. Yeah, I took a lower salary to do it, but I've found you can live pretty cheaply out here... you can live like a king for a grand a month. (nice apartment/rent house, utilities, fast internet, the rest of my bills, and food) Plus it's kinda nice to see something besides concrete during the drive to work. Definitely not as horrible as some /.ers are making it out to be. Nearly all of my fellow coders are competent and pleasant to work with. No stupid rednecks here, just like-minded people who enjoy life away from the booming metrop. and all the headaches it brings.
In Soviet Russia jokes are formulaic and decidedly non-humorous.
I was in the Dentist office yesterday and read a Business week article about how India's internal economy is booming so much now that it's getting harder to find and keep workers. This is leading to high turnover and making it tougher to outsource work there. I wish I had a URL but it was an early Nov. issue.
This could mean that outsourcing might have peaked, at least for India.
No matter where you go, there you are.
Sometimes out-of-pocket isn't the only cost that people are concerned with. Another advantage of rural outsourcing is that you can prosecute under US laws. I suspect this would be a big selling point for those who want to lower the costs related to processing medical data without assuming the liability if someone decides to ransom the data.
Not to mention the fact that any questions that pop-up while the over night shift is working take about 24 hours to resolve JUST FROM A LOGISTICS STANDPOINT, if you're lucky and the answers are perfect and don't require any follow up answers. Yeap, been there...actually stuck in that reality right now. My advice, shift all your target dates ahead by about 1/3 of the estimated hours.
Fat, drunk, and stupid is no way to go through life, son.