Good article in Business Week on the growth of rural outscourcing. It is also called farmshoring and it is a trend that is picking up steam.
According to the article, outsoucing to rural areas is price competitive with sending work overseas once you add in all the administrative and management costs. Key quote from the article:
"After factoring in additional costs such as oversight and quality control of the offshore work, however, rates are comparable, says Mary Lacity, a professor at the University of Missouri in St. Louis who studies outsourcing."
One limiting factor to rural outsourcing is the supply of qualified workers. But with costs doing business overseas continuing to rise - especially in China and India - there will be more opportunities for rural outsourcing.
Thanks for the pointer to the articles. Interesting stuff.
Posted by: steve | September 27, 2010 at 12:52 PM
Right Shore Outsourcing through a centralized business center is a unique way to minimize costs and get the work done professionally. Here's an article on RightShore outsourcing: http://mybusinessassistantblogs.com/?p=173
If you are wondering if outsourcing is the right strategy for your small business or not during the slow economy, then read this: http://mybusinessassistantblogs.com/?p=202
Posted by: Account Deleted | September 27, 2010 at 02:13 AM