More companies that once might have been tempted to pack up and move to cheap labor markets overseas are examining options closer to home.
Typically, they wind up paying a bit more to “onshore” the positions -- siting IT staff, support centers and the like in Missouri, Arkansas, Minnesota and Mississippi, for example -- but reap hefty benefits by avoiding the hassles of managing remote workers, often many time zones away.
IT labor costs in small communities can run up to 35% less than in urban labor markets and traditional tech areas such as Silicon Valley, Calif., according to the McKinsey Quarterly report.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Uncle Sam is helping rural communities become attractive options for IT backroom operations. The U.S. Departments of Agriculture and Commerce are administering a $1.8-billion investment fund targeted to bringing broadband technology to rural communities with poor or no access to high-speed Internet service. Making broadband accessible to more Americans in rural areas will lead to additional higher-skill jobs in many other parts of the country.
Companies putting IT operations in rural U.S. areas run the gamut from large to small. Among them are GlaxoSmithKline, Blue Cross Blue Shield and RJ Reynolds Tobacco. Small and midsize companies are the likeliest candidates to locate all of their IT back rooms in the U.S., according to Monty P. Hamilton, CEO of Rural Sourcing Inc., which provides recruitment, training and management services to businesses looking to set up domestic sourcing operations. Many large firms will probably continue to maintain some overseas locations while setting up others in the U.S.
Besides Rural Sourcing Inc., companies that can assist businesses seeking rural options include N.E.W. Customer Service Cos. and Onshore Technology Services.
-
Six Steps to Take if You've Recently Inherited Money From a Loved OneIt’s important to deal with the emotional aspect first before tackling the financial one.
-
Alaska Airlines to Buy Hawaiian: Get Bonus Miles Now
How to use the Alaska Airlines credit card and frequent flyer program to save on trips to Hawaii, Alaska and beyond.
-
As Cable Companies Move into Mobile, Customers Benefit: The Kiplinger Letter
The Kiplinger Letter The new cable bundle — home internet and mobile — is gaining steam. And the competition means good news for consumers.
-
New Voice Cloning Scam Has Regulators Scrambling for Solutions: The Kiplinger Letter
The Kiplinger Letter As fraudsters add voice cloning technology to their arsenal of deception, regulators are playing catch-up.
-
Small Businesses Hit Extra Hard by Rising Interest Rates: The Kiplinger Letter
The Kiplinger Letter On average, small business owners are paying interest rates in the range of 9.1%, per the NFIB.
-
The Battle for Net Neutrality Rules Rages On: The Kiplinger Letter
The Kiplinger Letter Advocates remain hopeful new net neutrality rules will survive, while the telecom industry and business groups seek to prevent FCC action.
-
Autonomous Trucks Are Coming to a Road Near You: The Kiplinger Letter
The Kiplinger Letter What does the rollout of autonomous trucks and cars mean for the commercial sector?
-
Lawmakers Crackdown on Pharmacy Benefit Managers: The Kiplinger Letter
The Kiplinger Letter A crackdown on pharmacy benefit managers on drug costs might help Congress forget their differences.
-
Work Email Phishing Scams on the Rise: The Kiplinger Letter
The Kiplinger Letter Phishing scam emails continue to plague companies despite utilizing powerful email security tools.
-
Tech Giants Look to Curb AI's Energy Demands: The Kiplinger Letter
The Kiplinger Letter The expansion in AI is pushing tech giants to explore new ways to reduce energy use, while also providing energy transparency.
