The Growth of Onshoring

2 Jul ’05

Newsfactor is running a story on onshoring – outsourcing to domestic lower cost centres – a movement spawned by the spread of broadband. It’s fascinating to see that the Earth is flattening close to home as well. Some interesting quotes:

In Jonesboro, Ark. and Portales, N.M., startup Rural Sourcing Inc. has opened programming centers staffed by fresh graduates of nearby universities, working for less to stay close to home. The company also is setting up in North Carolina and West Virginia.

“There is talent in areas that have a low cost of living and have no knowledge-work,” says Kathy Brittain White, the company’s founder and president.

In Oklahoma City, Ciber Inc., a computer consulting firm with $840 million in annual sales, opened its first low-cost programming site this year in a vacated call center, using work stations and telephone operators left behind.

Computer work “is going to go somewhere else cheaper, and it can either go to Bangalore or it can go to Oklahoma City,” says Tim Boehm, the executive in charge of Ciber’s low-cost initiative. The company plans five or six centers in the next two years, all in mid-sized cities.

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