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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."

23 of 587 comments (clear)

  1. Like I always say by suso · · Score: 4, Funny

    Don't outsource to India, outsource to Indiana.

    Specifically, Bloomington. There is a lot of talent here.

    1. Re:Like I always say by exi1ed0ne · · Score: 4, Insightful

      Well, I live in North Central Wisconsin an consider myself somewhat talented. Heck, my closest neighbor is 1/4 mile away. I think you'll find there has been a lot of migration back to the interior of the US from the Coasts of tech folks. I can charge a third of what I did in New England for the same standard of living. Better communications infrastructure makes living in high crime/cost/noise/polution areas no longer necissary. I can do my job just as well from anywhere, so why not someplace I'd rather be?

      --
      Pessimists.net - as if life wasn't depressing enough.
    2. Re:Like I always say by Woldry · · Score: 5, Insightful

      Another current Ohioan & native rural Pennsylvanian chiming in...

      I live in the most rural county in Ohio. Despite the large population of Amish here, we are hardly the benighted hicks that the coasters like to imagine. I have several options for DSL or cable service. The state has the best-funded libraries in the U.S., including the first ever statewide free online chat reference service. I make less now than when I lived in the city, but have a much higher standard of living due to the fact that life here is vastly more affordable.

      Some of the best universities in the country are found in Ohio. Despite the same-sex-marriage amendment that got passed recently, I have found people generally to be very accepting of my sexual orientation -- in greater proportions to the people I knew when I lived in Washington, DC or Pittsburgh. There's a 100% gay-friendly church in a nearby town (half the size of the town where I live). Unlike in the city, no one here has yet stolen my pets or keyed my car or slashed my tires. There's a thriving arts center in my community with programs that rival most things I saw when I lived in cities (Washington, DC and Pittsburgh) or on visits to the coasts. I live a mere hour's drive from a world-class symphony in Cleveland, as well as a vibrant art scene.

      What's more, where I live I can walk to work without fear of being attacked by random strangers or held up at gunpoint (as I was in a "nice" neighborhood in Pittsburgh). While we do have crime here, I love going for weeks at a time without hearing of a single armed robbery, murder, hate crime, arson, child abduction, breakin, elder abuse, carjacking, burglary, etc.

      You can sneer about the uneducated people living in rural areas, but as someone else pointed out, judging the entire state by a few ignorant people is roughly akin to judging LA entirely by the slums. I used to work with inner-city children who were far more ignorant and uneducated (and bigoted) than the most unenlightened, unwashed farmboy I ever met.

      Best of all, for the most part, people are genuinely nice to each other here, whether you're a total stranger, a brand-new neighbor, or an old friend. Yes, they poke their nose in your business, but they also help when your car breaks down on a back road in the middle of the night. That's a tradeoff I'll gladly take.

      I know that rural life is not for everyone. If you're happy in the city, by all means, stay there. More work for me! But please, stop sneering at those of us who choose to live here for very good, rational reasons. And please stop assuming that the occcasional rural village idiot is representative of rural America as a whole.

      --
      How can a post be modded "overrated" or "underrated" when it hasn't been rated yet?
  2. Pah! by Anonymous Coward · · Score: 5, Funny

    I think I'll continue to outsource to India. They tend to speak better English than Alabamans. (And they're less likely to take the afternoon off to marry their sister).

    1. Re:Pah! by Anonymous Coward · · Score: 5, Insightful
      It's great to know that there are still a few groups out there that are "safe" to hate and make crude jokes about.
      Humor is about power structures. That's why making jokes about the powerful (ie. Southern white folk) is ok, making jokes about the oppressed is bad. It's why making jokes about the president is fine, but making jokes about people made homeless by a Hurricane is not.

      Comedy that picks on the powerless and reinforces and justifies the status quo is worthless. Comedy that challenges the empowered is a valid social tool. It's the difference between standing up to a bully, and picking on a weakling.

      Is that so hard to understand?
    2. Re:Pah! by arnie_apesacrappin · · Score: 4, Insightful
      I think I'll continue to outsource to India. They tend to speak better English than Alabamans.

      I still don't get why everyone in the country makes fun of the way southerners speak when there are so many screwed up dialects in this country. When you look at Massachusetts, New York, Wisconsin, Louisiana (in the south, but a different accent near New Orleans) how come the southern drawl is the only one that is worthy of ridicule? And on the point of intelligence, consider this situation:

      If I were to ask, "Why can't the black man from Georgia read?" and you were to say, "I don't know, why?" examine your reaction the following explanations. If I reply "duh, I told you he was from Georgia" everyone thinks it's funny and laughs. If I reply "duh, I told you he was black" I am a horrible racist and should be shunned.

      Why is making fun of someone for their place of birth any different from making fun of someone for their race? Neither can be controlled by that person.

      --

      Still, with a plan, you only get the best you can imagine. I'd always hoped for something better than that. -CP

    3. Re:Pah! by budicepenguin · · Score: 4, Insightful

      "I still don't get why everyone in the country makes fun of the way southerners speak when there are so many screwed up dialects in this country. When you look at Massachusetts, New York, Wisconsin, Louisiana (in the south, but a different accent near New Orleans) how come the southern drawl is the only one that is worthy of ridicule?"

      Those dialects do receive ridicule (chowdah, da bearz, gah-run-tee, etc.), the difference is that it appears to be more ridicule of particular aspects of the dialect itself as opposed to the people who speak it. As for why that is, I dunno. Maybe it's because "The South" has more of a reputation for doing more backwards things (like the aforementioned incest), for being more aggressive than other parts of the nation (Don't mess with Texas, anyone?), or maybe it's just holier-than-thou snobbery. Regardless, I think it's more a desire to make "racy" humor in a PC climate - jokes about whites are fine, but don't go near another race or suddenly you're a racist bigot, so people are forced to joke about a white "race," in this case, southerners.

  3. Look to the 'burbs by josh.loomis · · Score: 4, Insightful

    There are places on the fringe of major cities where a lot of intelligent, IT-inclined people hang their hats. Suburban areas probably have a lot of young minds that are willing and able to adapt to the ever-changing world of IT. Much better to 'source there than a foriegn country IMHO.

    --
    I know, deep inside me, there's a Linux nut just waiting to be let out.
  4. It's not the accent anymore by stupidfoo · · Score: 4, Informative

    It seems many of the better quality India based customer service companies have been hiring employees with little or no accent, so their English is very clear.

    The thing that annoys me now is that they're so damn polite. You give them your first name and they reply "Thank you. Thank you sir. Thank you for the information." To ask a question they start with "Sir, could I please ask you for the ...". It takes almost 3 times as long to have a conversation as it should. You can be polite, but also be quick.

  5. The Park Avenue Digitician by Douglas+Simmons · · Score: 4, Interesting

    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.

  6. No revolution here by polv0 · · Score: 4, Insightful
    "The biggest benefit is knowing that we're giving jobs to American workers, versus a foreign country,"

    This isn't sufficient motivation for US firms to rural-source, and neither are local accents or convenient time zones. The reason the programmer makes $100 in NYC is that they need to be there physically, to interface with a broader team, client, management, etc... If a job can be sourced to someone in a small town in America, 99% of the time it can be sourced to someone in India, for pennies on the dollar.
    1. Re:No revolution here by bombadillo · · Score: 5, Insightful

      Don't under estimate the importance of being in the same time zone. I've worked on projects with Americans over 5 hours difference. (Europe to America) It was still a challange to have Americans that once worked in the same office trying to coordinate over the timezones. I've also worked on projects with people in India. The greater the time difference the more overhead that's required to keep people syncronized. PM's get sucked into the whole "People working 24/7" thing. However, the PM's have never put in the work requried or hired additional PM's to keep those people on the same page. I would much rather work with someone in my own timezone. Realworld experience tells me that the labor may be cheap. However, the additional managment required ends up negating most of the bennefits.

    2. Re:No revolution here by qwijibo · · Score: 4, Interesting

      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.

    3. Re:No revolution here by CodeHog · · Score: 4, Interesting

      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.
  7. The telecommute is murder by Billosaur · · Score: 4, Interesting

    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.

    --
    GetOuttaMySpace - The Anti-Social Network
  8. They should look into hiring a decent web designer by newdamage · · Score: 5, Insightful

    I'm all for taking advantage of hiring in small town America (I live in Indiana for the record), and quite frankly not having to deal with insane traffic, pollution, and outrageous housing prices is very nice.

    But I think this firm might want to first invest in a website that looks like it was designed by more than a 16 year old with a "Learn HTML in 21 days!" book.

    But that's just me, thinking people base opinions of companies off of how their website looks.

    --
    ce n'est pas un Sig.
  9. I guess I'm a rural source by Pedrito · · Score: 4, Interesting

    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.

  10. From a Coder in Rural America by jockeys · · Score: 5, Interesting

    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.
  11. Rural outsourcing by guacamolefoo · · Score: 4, Informative

    I note that Thomas Friedman talked about this in his book, "The World is Flat" where he discussed how, I believe, Southwest Airlines sent its booking to stay-at-home moms in Utah. They were stable, ad low turnover, the pay was good for them, and Southwest cut their costs fairly significantly.

    In addition, you are less likely to see unionization, you can sometimes farm out (heh!) work on a piece basis, reducing the benefits/workers comp/unemployment comp, etc.

    I live in a built-up area of PA. I grew up in the boonies. I have long considered the possibility of giving someone where I grew up a copy of Openoffice, a dialup account, and a computer so that I can email my dictation out there and have them send it back on a piece rate basis.

    I could probably save about 25-30% on my transcription costs.

    GF.

  12. Agreed. Why more people don't get this by iBod · · Score: 4, Insightful

    For those on low/middle incomes, the parent poster's rules certainly apply.

    People are being hoodwinked about globalization. It's a mad race for the bottom, with only a very small number of winners (i.e those that already have plenty of internationally-mobile money).

    In the future, you can be a slave for some corporation or government (what's the difference?) or be a super-wealthy player. The age of fairness and democracy is over guys.

    I feel we're hurtling back to Plutocracy the excesses of the Roman Empire, and the US is leading the way.

  13. India outsourcing might have peaked by myth24601 · · Score: 4, Interesting

    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.
  14. Re:But what's the quality? by overunderunderdone · · Score: 5, Insightful

    Which brings me to my next point, if these guys cost 1/3rd of the price it brings the question who actually wants to earn one third what they could in life? Practically nobody even if cost of living is cheaper.

    This simply isn't true. There are plenty of people that are willing to work for less money if the money they get will both go further and let them live somewhere they prefer.

    I DO think that a lot of these consultants will probably end up being a little older though. A kid right out of college is probably more willing and more likely to prefer to live in the big city. There are a lot of benefits to living in the "middle of it" when you are young, unattached & don't have many expenses. But a few years on when that kid gets married, has a kid (or two, three... more?) that moving someplace away from the big coastal cities will start to have a lot of appeal for them. Especially if they already owned a (small) home and can also cash out of the high-cost housing market and upgrade while also get completely out of debt moving to a lower-cost market that has a small-town atmosphere that they think is more conducive to raising children.

  15. No, no, no! by Julian+Morrison · · Score: 4, Funny

    ...you're doing the multiculturalism thing all wrong!

    What you're supposed to say is that "marrying your sister" is a cultural practise of excellent pedigree, and shouldn't be judged by narrow "western", ahem, I mean "urban" standards. Then you should suggest that Southern drawl is in fact a seperate language, start a "Southern-English dictionary", and get the bible translated into simplistic sentences (with Jesus replaced by Elvis, as being "culturally relevant"). And then, start some large lobbying groups in DC (manned entirely by damyankees except for a token Southern frontman) which advocate "rural quotas", and always seem to support the Democrats.