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Rural sourcing can replace outsourcing

By

Onshore Technologies office

CNN Money published a feature on rural sourcing, “Forget India, outsource to Arkansas.”

Dubbed “ruralsourcing,” “rural outsourcing” and “onshoring,” the practice relies on two simple premises: Smaller towns need jobs, and they offer a cheaper cost of living than urban centers. So businesses that outsource work to these areas can expect to pay less — rates are often as much as 25% to 50% lower — than if they were hiring urbanites with comparable skills.

The CNN Money story was picked up by Inc.com as the headline item for a weekly roundup, “Forget Outsourcing, Try Rural Sourcing.” 

This is a trend we first talked about in 2006, citing stories from Ed Morrison. (Moving technology jobs to rural areas, and Outsourcing to rural areas.)

Three companies were mentioned in the recent coverage: Rural Sourcing, Inc., Cross USA, and Onshore Technology. Their websites offer some resources that could be relevant to any small town business or economic development group exploring this type project.

Local economic developers: consider how you can leverage your state and national contacts to help your local businesses reach those larger markets.

Do you have local examples of rural companies tapping this trend? 

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About Becky McCray

Becky started Small Biz Survival in 2006 to share rural business and community building stories and ideas with other small town business people. She and her husband have a small cattle ranch and are lifelong entrepreneurs. Becky is an international speaker on small business and rural topics.

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Comments

  1. Hi Becky,

    I’m the CEO of Rural America Onshore Sourcing, the fastest growing rural onShoring company in the rural onShoring outsourcing industry. http://www.ruralamericaonshore.com

    I started Rural America almost two years ago to help people. Of all the start-ups I’ve done, this one is the most fun as we are bringing jobs to rural USA. We enable people to live where they want to live while having an income exceeding their rural based neighbors.

    Until like our competitors who tie up capital in expensive “brick and mortar” facilities thus slowing their growth, Rural America Talent works from the comfort of their homes tied together by a proprietary combination of broadband internet access, communication tools such as Skype, and web-based management tools.

    Business is booming. Clients worldwide bring their outsourcing projects/needs to us. We currently are recruiting in 19 states with ongoing expansion to all 50 states by end of 2011.

    The biggest challenge we face is that most USA businesses don’t know they have an third outsourcing alternative besides expensive USA urban vendors and going offshore. Please spread the word. As fast as we are growing, we still have over 500 talented marketing,IT, and creative design people that we to find work for. My email address is below. Look forward to hearing from your Readers.

    Thanks

    Christopher Hytry Derrington
    CEO
    chris@ruralamericaonshore.com

  2. Hi Becky,

    There is a labor explosion coming.

    $7B is being spent to bring broadband nationwide. Millions of rural Americans will be entering the virtual workforce. They are willing to work for far less that their Urban Americans..at prices competitive with competition overseas. Many, many entrepreneurs will be either born or expanding their existing local and online businesses. Rural America is flat.

    I will be speaking at the http://www.thebroadbandexpo.com in November about this exciting convergence.

    Thanks

    Christopher hytry derrington
    CEO
    Rural America OnShore Sourcing, Inc.
    chris@ruralamericaonshore.com

    August 1, 2010 4:44 PM

  3. In 1983 I started a PR agency in a very small rural town in the Northwest against a backdrop of naysayers and others who thought I should be committed. My philosophy? It was identical to what is being written here only acted upon some 30 years ago. Yes, it was a successful plan. Very successful.

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