Outsourcing to Rural America 587
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."
Like I always say (Score:5, Funny)
Specifically, Bloomington. There is a lot of talent here.
Re:I for one..... (Score:2, Insightful)
Not far off. (Score:4, Informative)
Re:Not far off. (Score:3, Insightful)
Re:Not far off. (Score:2)
Re:Not far off. (Score:2)
Re:Not far off. (Score:4, Insightful)
This is because the coasts treat news of Midwest factory closings and the like as unimportant. The economy is crashing in the Rusty States, and the coasters not only couldn't care less, but probably find it encouraging, since such a thing only translates to short-term gains in their stock portfolios.
It's all about class war, Ace. The Midwesterners are merely on the losing side, and losers never get fair treatment from the media. Overwhelmingly, Midwesterners are now waking up to empty businesses and shuttered factories
Despite my contempt for attitudes like yours, it still isn't rational to sympathize with the Midwesterners who are turning into America's fastest growing wage-slave class. Millions of unionized workers in the Midwest could see throughout the 1990s that their gravy train was ending. Yet instead of preparing for a future of markedly lower wages, they went as a class on a gargantuan spending spree in some sort of demented race with the much-better-paid coasters. We can certainly blame the banks for urging on this orgy of spending and speculation, but ultimately (per the doctrine of personal responsibility) it falls upon each worker for shouldering luxuries while pretending they were necessities.
Re:Minimum Wage == Death of American Jobs (Score:3, Insightful)
The minimum wage raises the price of unskilled work that can be performed cheaper and more safely by a machine. (Or an illegal, these days) Minimum wage jobs tend to cluster around a few industries, chiefly restaurants and retail. You wouldn't see much inflation because people would choose other options with lower labor overhead. (Buying food and cooking at home or ordering merchandise online)
The inflation and spiraling standard of living that we have experienced over the
Move close to your office. (Score:3, Insightful)
During most of the hitory of mankind, work was always close to home.
It was only with the advent of the car first, and long distance trains later, that we fell on this nonsensical notion that we could work in a place 100 km away as something normal.
I was doing exactly that, commuting from suburban Britain to London. 2 to 4 hours wasted every day.
I got fed up, and my solution has been to move walking distanc
Re:Not far off. (Score:3, Interesting)
Re:Not far off. (Score:2)
Re:Not far off. (Score:4, Insightful)
Re:Not far off. (Score:2)
Re:Like I always say (Score:2)
You see, cheap beaches, bitches, hotels and sand. What else would you like?
Re:Like I always say (Score:2)
What else would you like?
More beetches!!!
See how I did that? I made it so you can't tell if I'm talking about beaches or bitches, by adding in a fake heavy accent through the use of a typo. Nifty!
Re:Like I always say (Score:4, Funny)
Or you can go with the abovementioned Lakota Express and outsource to (American) Indians! See, technology giveth and it taketh away.
Re:Like I always say (Score:4, Insightful)
I thought about moving to Cali for a job, they would give me about a 70% raise, but I would end up in a smaller house and a much longer commute.... sheesh!
Re:Like I always say (Score:5, Insightful)
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.
Re:Like I always say (Score:3, Informative)
Re:Like I always say (Score:5, Insightful)
Re:Like I always say (Score:3, Insightful)
The only way to get high speed net in rural areas is usually satellite, which has unbearable latency, or running a dedicated line, which is ridiculously expensive.
I wonder how tech companies are solving this problem; telecommuting from a rural area will simply suck without a good connection.
-Z
Re:Like I always say (Score:4, Informative)
At the risk of being a shill, I use WildBlue [wildblue.com]. It is cheap, the dish is small, the speeds rock, and it works. About the only thing it sucks for is off-hours fragging. My speed us 1.5 up 256 down, with 500ms latency (last time I looked). Most could live with that, I know I can.
BTW, I looked at a getting a T-1 before I found this place. Verizon doesn't run them to homes per policy.
Comment removed (Score:4, Informative)
Pah! (Score:5, Funny)
Re:Pah! (Score:3, Insightful)
You're just a prejudiced as any hate group in history.
Re:Pah! (Score:2)
Oh don't fret. They're just damn yankees. We could always outsource to WisCAWWNsin (don't cha know?) or the Bronx where they can "breaka your face if you call our company again". Then there is always the California dudes with all the fun earthquakes. Florida woul
No, no, no! (Score:5, Funny)
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.
Re:That's easy (Score:3, Funny)
Yeah, but I bet any a one of them can kick your ass.
:P
Re:Pah! - telecommuters (Score:2)
I live in rural Alabama, and speak English at least as well as someone from the rest of the country. I work as a telecommuter (run a support department for a firewall startup) and have never had a problem. I agree that it is nice to get a nice home for 80-130K as opposed to 350-600K in some other areas (San Fran comes to mind.)
Since I timeshift to cover some of the EU, living in the eastern US is nice, and we have fewer problems with telco and
Re:Pah! (Score:5, 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? 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.
Re:Pah! (Score:4, Insightful)
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.
Re:Pah! (Score:3, Insightful)
Politics. Most Southern states are so-called "red states", so calling them "backwards" is an indirect way of calling Republicans backwards. For some reason, some people prefe
Re:Pah! (Score:3, Interesting)
I'm from a backwards area (the Upper Penninsula of Michigan--which happens to have the same type of accent as Northern Minnesota and Wisconsin--you know, derivatives of the Fargo accent). I can tell you that I don't call people from my home territory backwards because they are Republicans, I call them backwards because they are behind the times on many, many issues. Despite some great high schools in the UP, there is still a devastating
Re:Pah! (Score:3, Funny)
Oh really (Score:2)
Re:Pah! (Score:5, Insightful)
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?
Re:Pah! (Score:3, Funny)
Okay... what do you call a Mexican chick with no legs?
Consuelo
Look to the 'burbs (Score:4, Insightful)
Re:Look to the 'burbs (Score:2)
It's not the accent anymore (Score:5, Informative)
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
India outsourcing might have peaked (Score:4, Interesting)
This could mean that outsourcing might have peaked, at least for India.
Re:India outsourcing might have peaked (Score:2)
Re:It's not the accent anymore (Score:2)
While waiting for my machine to reboot, the tech says to me, out of the blue, "So Mr. Oni, do you like to play video games?"
I busted out laughing. I guess there's a line in his script, "during uncomfortable silence: So Mr./Mrs. (Customer Name) do you like to play video games?"
God, how lame.
Re:It's not the accent anymore (Score:2)
Then again, I suppose you could be right. The last two times I've called Dell, I've gotten TS reps with no disernable "foreign" accent, and yet they've been either (a) clueless or (b) outright wrong in their attepmts to repair
It really was a typo (Score:2)
Re:It's not the accent anymore (Score:3, Funny)
The Park Avenue Digitician (Score:5, Interesting)
Re:The Park Avenue Digitician (Score:2)
Admit it, you just wanted to brag that you got paid $600 to be a glorified GeekSquad employee for a couple of hours.
Turnover??? (Score:2)
With this in mind, the article is probably FUD, it just doesn't make any sense to do this.
Re:Turnover??? (Score:2)
I think a big part of the problem is that Compaq was just acquired by HP at the time I was lo
Re:Turnover??? (Score:2)
Dude, you may want to adjust your expectations a little... By your own admission, you just graduated, what did you expect? Big pay like the radio commercials for those fly by night "IT Training" houses? You know what I mean... "You can be making $60,000 per year in six months!"
Even if you went to university and got bachelors AND Master's degrees AND already had some of the sk
Re:Turnover??? (Score:2)
What, do you know any young professionals? (Score:2)
It's really hard to keep young professional in small towns. Please from citys (which lets face it, most professionals are!) don't want to live in BFNW for more than a year or two. Additionally, at least in Canada, people are typically paid better in BFNW so as to give some insentive to move there.
Do you know any young professionals? If so, you may want to ask one of them to proof your future submissions first...
No revolution here (Score:5, Insightful)
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.
Re:No revolution here (Score:2)
Well, outsourcing to rural America could also be to forestall any future backlash against outsourcing to other countries. Outsourcing is not so much in the spotlight now, but it probably will be again in the future. Then, they can say something to the effect of, "Yeah, we outsource some to India and China, but we also outsource to rural America. We are keeping
Re:No revolution here (Score:5, Insightful)
Re:No revolution here (Score:5, Interesting)
Communication (Score:4, Insightful)
Re:No revolution here (Score:5, Interesting)
The telecommute is murder (Score:5, 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.
Re:The telecommute is murder (Score:4, Interesting)
Magically when you cross the border into PA, everything becomes more reasonable. I'd love to live in Stroudsburg or Bethlehem, but I work just outside Manhattan. I can't handle 120 miles round trip daily. Perhaps two or three times a week would work (there are buses!), but not every day.
I wish I could telecommute.
Re:The telecommute is murder (Score:2)
Find a university somewhere you want to live and work for them.
I say that because 1.) it's what I just did, and 2.) there tend to be universities in the "middle of nowhere", where there's little to no crime, lots of bandwidth, low cost of living, inexpensive apartments / townhouses, and a higher standard of living (college towns usually have more sales and alcohol tax revenue than they know what to do with).
I turned down $75k at network solutions because I'll be damned if I wanted to live in Dulles or Fairf
Re:The telecommute is murder (Score:3, Funny)
I'd take a pay cut to live in some place that was quieter, with a lower cost-of-living.
Boy, is that funny. If by 'cheaper' and 'Northern California' you mean some shack on the side of a mountain in the middle of the Sierra Nevada where it takes you 1 day by donkey to the nearest fire road
Or better yet, look somewhere else that is just as
They should look into hiring a decent web designer (Score:5, Insightful)
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.
Don't forget language... (Score:3, Insightful)
It's my understanding that one of the benefits of buying Dell stuff from the business unit (maybe only large bus) is that the tech support speaks real english. Maybe people are learning that sometimes a lower price is not all that it's cracked up to be.
eric
Send them here please (Score:2)
While I am 100% happy with my IT job in this lovely town of 2100, I could use a few more nerdy friends (bet my wife would just LOVE that!)
They really should (Score:4, Insightful)
Re:They really should (Score:4, Interesting)
That is certainly not the only reason that most people live in cities. Cities are generally more interesting places to live, and I'd rather take a studio in NYC over a mansion in Nebraska.
Re:They really should (Score:2)
Re:They really should (Score:3, Insightful)
Re:They really should (Score:2)
skills? (Score:3, Interesting)
Re:skills? (Score:2)
Re:skills? (Score:2)
I moved from CA to AZ and make about 40% more here. I would like to live in a more rural environment, but I'm not willing to take a significant pay cut to do it.
Re:skills? (Score:3, Insightful)
I guess I'm a rural source (Score:5, Interesting)
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.
Re:I guess I'm a rural source (Score:2)
Re:Your opinion is suspect (Score:3, Insightful)
I've been quite successful in my career. I've had dozens of magazine art
From a Coder in Rural America (Score:5, Interesting)
Rural outsourcing (Score:5, Informative)
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.
Re:Rural outsourcing (Score:2, Informative)
Re:Rural outsourcing (Score:3, Interesting)
I think that the development (outsourcing to remote areas) is a positive consequence in that it does allow wage arbitrage within the United States, which may help to reduce the pressure on urban areas as well as empower and enrich more remote communities where employment can be a hit or miss thing. Lose one of your majors, and the community suffers tremendously.
By broadening the possible options for
What about Sykes or Convergous (Spelling!) (Score:3, Informative)
It all depends on the relative costs. (Score:2)
I moved recently and took a substantial pay cut, with the house prices so much lower I'm actually making more than I was in London. The banks & tax man are getting less of it.
Terrific News! (Score:2)
Infrastructure? (Score:2)
Where does our broadband access rank us again? About 16th? Truth is, the IT infrastructure might be genuinely superior in India compared to Kissin' Cousin Township, Iowa.
Re:Infrastructure? (Score:2)
You know.... (Score:3, Informative)
Dell is actually the only company I know that caters to this with their Gold Technical Support (an upsell added to the service contract for business customers). At a few jobs I have had to work with them, regular Dell business support and Dell Home support (India).
Having worked with all of the choices, I would never hesitate to spend the extra money to get Dell's Gold Support. Even if I get a guy on the phone who isn't a "guru" he has access to someone who is. And, just about everytime I've called I've gotten either Dell headquarters in Round Rock, TX or somewhere in Idaho.
Works well for me (Score:2)
I love working out of a home office and telecommuting for various customers. There are diversions like helping my wife with shopping and cooking, walking my dog on the national forest service trails behind my house, etc. However, I find myself only working when I am really in the groove (or in the flow) an
"The World is Flat" (Score:3, Interesting)
Works for us. (Score:3, Informative)
Personally, I enjoy living in a $120000 3500 sq ft home on 1.2 acres of land so I actually live a 20 minute commute from Athens in the other (non-Atlanta) direction. I also get spend my summer weekends on beautiful Lake Hartwell instead of the massively overcrowded Lake Lanier since Hartwell is now only a 20 minute drive (24 miles to the boat ramp I use).
Old story (Score:2)
This might be comparable to India (Score:3, Interesting)
That is a move from RTP, NC USA to Bangalore, India. RTP's cost of living is probably mid-way between NYC and BFE rural town pop. 600. A 2800 sqft house will run about $300,000 to $350,000. Don't expect a new house here for less than $300K but older smaller ones might be as cheap as $150K. Apartments run $700 to $1400 a month.
I would be willing to move to a smaller city if I could take my IT job with me.
I live in rural America. (Score:3, Informative)
The huge problem with this is that socially, rural America sucks. It's cheap to live here, but aside from skiing/snowboarding/whitewater (thank goodness this is Idaho and not Nebraska) there's really nothing to do for youngish geek-oriented people. It's simply not fun to be here unless you are religious and/or enjoy cowboy-type stuff. ESPECIALLY if you're single.
The social scene in a city is far better suited to IT workers. That's why they want to live there -- not just for the jobs.
Agreed. Why more people don't get this (Score:5, Insightful)
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.
Re:Rural Sourcing (Score:2)
Re:But what's the quality? (Score:4, Insightful)
Re:But what's the quality? (Score:4, Insightful)
Re:But what's the quality? (Score:5, Insightful)
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.
Re:Onshore outsourcing (Score:3, Interesting)
Your logic is flawed. You assume that when workers give away their rights, they earn jobs. The fact is that Europeans have been giving away their labour rights and lowering their quality of living, and the unemployement just gets worse. At the same time, corporations are getting absolute records in profits. And those are not being used to improve living or create jobs.
If you give the corporations your hand, they will demand your arm.
I find it funny that many people take the side of the corporations,