President Obama recently emphasized that outsourcing to foreign countries was one of the reasons for unemployment in the U.S., he also added, “…it is time to finally slash the tax breaks for companies that ship our jobs overseas and give those tax breaks to companies that create jobs right here in U.S.A.” This is undoubtedly in the interest of the people of America, but has initiated a lot of discussion amongst service providers in other leading destinations. Most outsourcing pundits are already weighing its repercussions. It could also be a major threat to the world’s leading IT and BPO services provider- India- half of whose offshored business comes from the United States.

As for the buyers, it is time (specially in the United States) to re-consider and re-evaluate the pros and cons of offshoring. This will also give most organizations an opportunity to consider other avenues and ways to reduce cost. American onshoring will not go unnoticed this time. After all, the recent survey conducted by research firm Valuenotes Database among 237 publishers, consultants and service providers, largely from the U.S. and UK, notes that though India remains a favoured publishing sourcing destination with 66 per cent of the respondents rooting for it; it is followed by the U.S. with 30 per cent.

Outsourcing to the rural (or non-metropolitan) areas started almost five years ago in selected Tier 2 and Tier 3 cities. Since then, a few organizations have emerged as the front-runners of the American Onshoring business; one of them being Rural America Onshore Sourcing Inc. Christopher Hytry Derrington, CEO,  Rural America Onshore Sourcing Inc., says, “The availability of rural American talent which can be acquired at a cost 40% lesser than in the urban areas, now makes rural America an excellent outsourcing venue. This has been made possible by the spread of broadband Internet services. To further encourage the growing trend, the government has allocated $7 Billion to implement broadband in rural areas. Over the next few years, you will see millions of rural-based low-cost Americans entering the virtual workforce.”

In addition to the rise in opportunities of working in a virtual environment, there are initiatives taken by start-up technology companies like California-based, Systems In Motion, that plans to hire 1,085 workers (for IT services) within five years (in Michigan), according to the Michigan Economic Development Corporation. Debashish Sinha, CMO, Systems In Motion, told annarbor.com, “(on competition from offshore vendors)…The service factory model that we’re building will make it such that we are at least cost comparable. We might not be directly competitive but we will definitely be comparable.”

American Onshore Highlights

Cost of American Onshoring is 40% cheaper than that in Urban areas. It could however, be 15-20% more costly than offshoring (for selected low-end services only).

The Government’s $7 Billion fund to implement broadband in rural areas will facilitate millions of Americans joining the virtual rural workforce and earning a living.

Charges for PHP and .Net -based work costs approx. $50 an hour (significantly cheaper than the urban areas).

Customers are allowed to directly interact with developers, and not only with the sales/ account managers.

Same time-zone advantage.

With use of a virtual business model, scaling up is no more a concern in emerging rural onshore outsourcing destinations.

How does it work?
Christopher believes that in order to be competitive and give customers an irresistible combination of price and quality, one must adopt a new business model; one that is not built on brick and mortar but a virtual (online) environment. This is where the broadband plays a very important role. Very often has Christopher rejected talented professionals who were willing to work but had a dial-up connection at home. This kind of business model runs on the effective use of VoIP and Sharepoint services with online applications that track the progress of the project. He adds, “It doesn’t matter whether the members of the development team (assigned to a project) are based in Wisconsin, North Carolina or Texas. They all sit and work on a common task list and a project schedule.”

Such a model is helping the company scale-up in record time (when the need arises) and utilize the rural talent pool in over 12 states. Their goal being to aggregate low-cost rural American talent on a national level to develop application (or software) for small, medium and large companies.

Types of Projects Outsourced

Type

Client

Software Testing and Performance analysis of an Anti-virus software

A leading developer of Anti-virus software for mobiles, in the U.K.

Java API integration with UPS Java API , J2EE applications on Websphere

A web-based solution provider in the U.S.

.Net, iphone app, eCatalog for a product search engine

An application/ software development company in the U.S.

CakePHP, Java and MySQL (for web based packaging software application)

A packaging engineering support solutions provider in the U.S.

PHP, My SQL, web graphics and interactive media for an eCommerce platform

A high-end B2C retailer in the U.S.

Source: Rural America Onshore Sourcing Inc.

Advice
Each type of outsourcing has its strengths and weaknesses. Depending on what has to be outsourced, seek more information on American onshoring. For example; in case the job does not have much value added services to it, or it has to do with processing calls (or telemarketing); its best they are offshored. For projects that require higher degree of expertise and market knowledge in IT, marketing or support functions; American onshore service providers may offer a better deal. Christopher believes that higher the complexity of the project, higher will be the advantages of rural onshoring, specially for the U.S. market.

Offshoring is here to stay for longer because of the advantages it offers; but with globalization there is another alternative that companies must consider when taking outsourcing decision. That is, onshoring to rural parts of America. Though this sector is still evolving and will take a few years to gain larger market share, it is already helping thousands of Americans make a living and believe in  the power of ‘Yes, we can’.

//

Rural America’s Two Rivers office moves downstairs

Company offers alternative to offshore outsourcing

By Cindy Hodgson • Herald Times Reporter • January 12, 2010

TWO RIVERS — The struggling economy of the last year hasn’t hurt Rural America Onshore Sourcing, which opened an office in Two Rivers in January 2009, according to its CEO, Christopher Hytry Derrington.

“We’re booming,” he said.

The Two Rivers office is located at 1413 22nd St., just east of Pizza Hut. The company recently moved to the basement, where there is more space and room to expand.

Rural America Onshore Sourcing, previously called Rural America IT, is a business process outsourcing company that was launched in August 2008. The company provides services such as market research, data processing and Web design.

It employs people in rural areas, many of whom work from home.

By using lower-cost rural labor, it aims to provide an alternative to expensive urban vendors or offshore outsourcing, which is the practice of hiring overseas companies to do such work.

Offshore outsourcing offers low costs up front but often comes with hidden costs, such as communication barriers and quality control problems, according to Hytry Derrington.

He said he thinks his company is the sort that could thrive in any economy.

When finances are tight, companies are looking for new, lower cost vendors, and when business is good they may outgrow their vendors or their ability to handle the work in-house.

Expansion

Rural America already had offices in Ohio and Kentucky when Hytry Derrington opened the office in Two Rivers. A year ago, he said his goal was to have offices in 18 states by the end of 2011. Since then, Rural America has expanded to one additional state, Indiana, and Hytry Derrington now said his goal is to be in 22 states or regions by the end of 2011, including eight by June.

Each state or region will have a state headquarters office, plus various business development centers where home-based workers will come together occasionally. In Wisconsin, he proposes centers to be located in River Falls, Wausau, Janesville, Eau Claire and Ashland.

He aims to have 50 employees in the Two Rivers area by 2014. Right now, he has three who work at the TR office, one who will start there soon, and four who work from their homes in eastern Wisconsin.

Hytry Derrington continues to live in Ohio and visits the Two Rivers office during one or two weeks each month. He owns property south of Manitowoc, but his plans to move here with his wife, Renee, last summer were put on hold when he couldn’t sell his house. They plan to break ground on a new home on their property here in April and then he will spend two or three weeks per month at the Two Rivers location.

Employees

Carolyn Mabbitt has worked for Rural America since November 2008. She moved to Two Rivers from Michigan at the end of June to become director of interactive marketing.

“I understand the concept of people working virtually,” said Mabbitt, who previously did freelance work as an off-site administrative assistant.

Working on her own, she found herself unable to compete with the low costs of overseas companies. Rural America is able to offer prices in between those of overseas companies and expensive urban vendors.

“I believe very much in the concept of what they’re trying to create,” she said.

Mabbitt focuses on marketing through social media, both for Rural America and for its clients. She uses Twitter, Facebook and Linkedin, and she even has made YouTube videos for a diamond importer.

Mabbitt called herself a “city girl” and said she’s never lived in a community as small as Two Rivers. She came here from Waterford, Mich., which has a population of nearly 74,000.

“It’s been quite a change, but it’s been a wonderful change,” she said.

She shared an example of small-town friendliness. She had been in Two Rivers for three days when her car wouldn’t start. A neighbor came over and gave her the keys to his vehicle and allowed her to use it.

“It’s like that everywhere,” she said, referring to her new community.

Unlike with Mabbitt, the virtual world is new to Sammie McDonald, director of human resources. McDonald has experience in human resources, office management and accounting. She is responsible for keeping Rural America’s Web site up-to-date, recruiting employees and handling the finances.

McDonald works from the Two Rivers office and said she wouldn’t be interested in working from home.

Julie Berglund, on the other hand, enjoys working from her home in Menasha as a Web and graphic design. She was a freelance designer for four years before signing on with Rural America, and she is enjoying the camaraderie with her co-workers. They’re in contact over the phone and via e-mail, and they get together monthly at the Two Rivers office.

“It’s been very nice to be able to work virtually … with the team,” she said.

Berglund said working in her own space is comfortable, and she can be flexible in terms of the hours she works.

When she worked as a freelancer, she spent a lot of time on tasks like sales and billing that weren’t connected to the design work she actually wanted to be doing.

“They’re a good company,” she said about Rural America. “I’m having a lot of fun, actually, working with the team again.”

The Total Cost of Outsourcing: The Rural Alternative

How to use outsourcing to your financial and operational advantage

In today’s tough economy, businesses of all sizes and industries are seeking new ways to maximize profit margins. Outsourcing has been a staple of the corporate diet for years as we search for better and cheaper ways to work.  Outsourcing, however, has its costs and operational issues. This webinar shows how the cost of offshoring compares to rural onshoring.

Attend this free webinar to learn:

• The Total Cost of Outsourcing (TCO)
• The different types of outsourcing
• Cost of Outsourcing
  • Labor
  • Transition
  • Operation
  • Management Reserve
• Evolution of outsourcing – Follow the money
• Rural onshoring alternatives
• 3Ps of successful rural outsourcing

The Total Cost of Outsourcing: The Rural Alternative

How to use outsourcing to your financial and operational advantage

January 7, 2010 | 2pm EST / 1pm CST / 12pm MST / 11am PST

Not sure you can attend the Webinar?

We’ll send you the on-demand Webinar with slides and audio once it is posted to our Website.

About Your Presenter

Martin is an Executive leader with over 25 years of Engineering & IT management experience at Fortune 100 firms. He is a certified Lean Six Sigma Black Belt with over 12 years of experience in the selection and operation of ITO operations in Europe, Asia, North and South America. Martin specializes in identifying and implementing the processes and controls necessary for successful onshore, nearshore and offshore performance and profitable growth.

About the Presenter:

Martin J. Gardocki
COO and acting Vice President
of Ohio, Indiana and Kentucky

Webinar:

The Total Cost of Outsourcing:
The Rural Alternative

Date:

Thursday, January 7, 2010

Time:

2pm EST / 1pm CST /
12pm MST / 11am PST

Space is Limited.
Reserve Your
Webinar Seat.

Sign up

]]> http://ruralamericaonshore.wordpress.com/2009/12/22/live-webinar-how-to-use-outsourcing-to-your-financial-and-operational-advantage/feed/ 0 Rural America Onshore Sourcing http://ruralamericaonshore.wordpress.com/2009/12/15/the-total-cost-of-outsourcing-the-rural-advantage/ http://ruralamericaonshore.wordpress.com/2009/12/15/the-total-cost-of-outsourcing-the-rural-advantage/#comments Tue, 15 Dec 2009 22:37:21 +0000 Rural America Onshore Sourcing http://ruralamericaonshore.wordpress.com/?p=187 ]]> December 10th, 2009 by May Advincula Leave a reply »

In an IMF Web Forum, Martin Gardocki from Rural America Onshore Sourcing, discussed the rural alternative in the total cost of outsourcing. Rural America Onshore Sourcing is responsible for finding and aggregating rural talent to provide customers with contract assistance as required for their businesses.

The different types of outsourcing that exist include:

• USA Urban Outsourcing (domestic, urban firms contracted to provide a service)
• Offshoring (contracting with firms in places such as India and China)
• Nearshoring (outsourcing to firms in Central and South America)
• USA Rural Onshoring (domestic firms in rural communities or distributed rural teams contracted to provide a service)

According to Gardocki, “the opportunity of outsourcing is to actually use the capacity and the capability of the outsourcer to drive even further benefits going forward.”

There are 4 basic costs associated with outsourcing which include the following:

1.      Labor (cost of personnel and source of savings generated through arbitrage)

2.      Transition (cost of identifying, negotiating, and moving work to the outsourcer,

3.      Operation (ongoing cost of the relationship)

4.      Management reserve (cost of managing the unexpected)

ARBITRAGE: “The simultaneous purchase and sale of an asset in order to profit from a difference in the price. It is a trade that profits by exploiting price differences of identical or similar financial instruments, on different markets or in different forms. Arbitrage exists as a result of market inefficiencies; it provides a mechanism to ensure prices do not deviate substantially from fair value for long periods of time.” –From investopedia.com

Gardocki explains that the evolution of outsourcing began with contracting with urban vendors where good work came at a premium price. With offshore sourcing there was significant cost savings in comparison to urban vendors, but the overhead costs of governing communication and productivity generally add themselves to the equation. Gardocki states, “As people have become more comfortable with the offshore model and companies become more global, the whole concept of having captive offshore development centers has crept up over the last 5-10 years. Basically [you avoid] the middle man markup and [do] it yourself.” In Gardocki’s own experiences, he has known many owners of small to medium sized business where low cost providers did not necessarily work out and their productivity dropped dramatically for every transition which delays the promise of ongoing benefits and a wealth of capability and capacity. According to Gardocki, what is more alarming is the effect on the customers because “they feel the pain in delayed delivery, they feel the pain in increased costs, and basically you’re the one who has to tell them why,” Gardocki explains. As a result, people look for other areas in which they can reduce some overhead of the operation and still get some of the savings.

The Rural Alternative involves domestic firms in rural communities or distributed rural teams contracted to provide a service. There are millions of people willing and able to work from their homes or local offices with strong work ethic and speak the same language. They are technically skilled to meet the demands of today’s information technology and business process outsourcing environment.

The “3 Ps” of rural onshoring include:

• Proximity to broadband (access to internet at speed capable of sustained operation)
• Population Density (depending on the skill and number of personnel required, you can work in a single community or require personnel across multiple regions or states)
• Process disciple (dispersed or remote teams require process rigor to ensure efficient operation. This includes the infrastructure to support collaboration, project management, document management, and standards).

“We are finding a large and talented workforce here in Rural Wisconsin and in other small communities throughout the US”, says Hytry Derrington. McDonald states, “I believe in the purpose of Rural America as keeping jobs in the US is very important to me. By hiring talented rural based professionals, we offer businesses an alternative to costly urban vendors and to sending work offshore, helping them save money in a critical time when so many companies are closing their doors.”

About Rural America Onshore Sourcing

Rural America Onshore Sourcing is an onshore outsourcing company with headquarters in Two Rivers, and offices opening nationwide. A minority owned company, Rural America enables customers to cut their project and labor costs by up to 40%. They offer a variety of Business services including web-design/development, social media marketing, custom graphic design and more.

Safe Harbor Statement: Statements in this press release may contain forward-looking statements based on management’s current expectations, estimates and projections. Words such as “anticipates,” “intends,” “plans,” “estimates,” variations of such words and similar expressions are intended to identify such forward-looking statements. Forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those projected or implied in the forward-looking statements. Rural America Onshore Sourcing is not undertaking any obligation to release publicly any updates to any forward looking statements to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events.

Contact:

Carolyn Mabbitt

Director of Interactive Marketing

Rural America Onshore Sourcing

888 884 4348 ext 6502

Carolyn.mabbitt@ruralamericaonshore.com

The new site has many features, including the Create Your Own ring, which allows one to pick their diamond and their setting; plus a new Create Your Own studs with new software that matches certified diamonds to create a pair of studs. Plus enhanced ecommerce with shopping cart and check out that makes online shopping a breeze.

CADI also announced the: 2009 Designer Trunk Show:

• Featuring some of the Top Bridal Jewelry Designers, Simon G. Henry Daussi, SES Creations, A.Jaffi, Novell Wedding Bands, Dora Wedding Bands, our diamond cutters and many others.
• Launch of Designs by Sabet: Custom designed jewelry, sure to please even the hardest person to shop for on your Christmas list. Designs by Sabet range from sparkling Diamond Bracelets to spectacular Cuff Links.
• All attending will receive special pricing of 20% – 30% throughout the store
• Charleston Alexander Diamond Importers, 7845 Wisconsin Ave, Bethesda, MD
• Show is December 4^th, 5^th, 6^th.
• Admission is FREE

About Charleston Alexander

Charleston Alexander is a premier diamond importer; they import directly from Belgium and Israel. Charleston Alexander is a second-generation family-owned and operated business; they take pride in creating enduring relationships with their customers. Charleston Alexander is the area’s premier diamond importer. That’s because they have more diamonds in one place than any other one place in Virginia, Maryland, or DC.

Safe Harbor Statement: Statements in this press release may contain forward-looking statements based on management’s current expectations, estimates and projections. Words such as “anticipates,” “intends,” “plans,” “estimates,” variations of such words and similar expressions are intended to identify such forward-looking statements. Forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those projected or implied in the forward-looking statements. Charleston Alexander is not undertaking any obligation to release publicly any updates to any forward looking statements to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events.

For more information contact:

Carolyn Mabbitt

Director of Interactive Marketing

Rural America Onshore Sourcing

888 884 4348 ext 6502

Carolyn.mabbitt@ruralamericaonshore.com



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Milwaukee —Wired Wisconsin— a non-profit coalition of concerned businesses, organizations, and
individuals who are working to put our state on the cutting edge of technology —announced today that
the organization has added Privacy Counsel LLC, Midwest Renewable Energy Association, and Rural America Onshore Sourcing as strategic partners.
“We are delighted to add these great organizations to our Wired Wisconsin strategic partnerships list,”
said Thad Nation, Executive Director of Wired Wisconsin. “Each of our partners brings invaluable insight
and experience to the table that will enable us to further our coalition goals of fostering collaboration
and educating elected officials and the general public on technology issues in Wisconsin.”

Establishing strategic partnerships with businesses and organizations throughout Wisconsin is crucial to
creating an environment that supports innovative technology, high-tech job creation, and economic
growth.

“Broadband deployment is key to bringing and keeping jobs in rural Wisconsin, and Wired Wisconsin’s
dedication to this issue made partnership between our organizations a logical choice,” said Christopher
Hytry Derrington, CEO of Rural America Onshore Sourcing.

Midwest Renewable Energy Association Executive Director Tehri Parker added, “We’re pleased to join as
partners with Wired Wisconsin because of our shared mission to educate consumers and businesses
about renewable energy and other green technology issues.”

“Technologies such as social media—where nothing is private—require a greater understanding of the
rights and responsibilities of its users,” said Liza Barry-Kessler, Managing Partner of Privacy Counsel LLC.
“Partnering with Wired Wisconsin to bring more visibility to this important issue through events such as
our upcoming forum makes a lot of sense.”

The forum, “Governor 2.0: Utilizing Social Media,” will be held on Wednesday, October 28 at 12:00 p.m.
at the Concourse Hotel in Madison, and is free and open to the public.
Wired Wisconsin has over 15 diverse strategic partners, including Badgerland Financial and Rural Partners—organizations both focused on rural community development, MKE Live, a well-known
networking and LinkedIn training company, and three Wisconsin regions of Goodwill Industries.

For more information about becoming a Wired Wisconsin Partner, to see all of our partners, or to learn
more about our upcoming forum, please visit www.wiredwisconsin.org.
Wired Wisconsin is a non-profit coalition of concerned individuals, businesses and organizations who are working to put our
state on the cutting edge of technology. The coalition will work to support an environment for innovative technology, high-tech
job creation, and economic growth. Wired Wisconsin will seek to educate consumers, policy makers, and businesses about
technology- related legislative and regulatory issues that impact our lives and advocate for common-sense approaches to spur
innovation and grow the economy. For more information, visit www.wiredwisconsin.org.

The Midwest Renewable Energy Association (MREA) is a non-profit 501(C)3 tax exempt organization founded in 1990. Our
mission is to promote renewable energy, energy efficiency, and sustainable living through education and demonstration. For
more information about our events, membership opportunities, ReNews newsletter, or workshops, visit www.the-mrea.org.

Rural America Onshore Sourcing is a USA-leading onshoring company. It has state headquarters and business development
offices in Wisconsin, Kentucky, and Ohio and plans for expansion to 19 more states by end of 2011. Rural America Onshore
Sourcing provides information technology and business process outsourcing services using lower cost rural-based professionals
so that companies don’t have to send projects offshore or use expensive urban vendors. A minority owned company, Rural
America Onshore Sourcing enables customers to cut their project and labor costs by up to 40 percent. More information is available at http://www.ruralamericaonshore.com/.

Privacy Counsel, LLC works with companies and organizations to protect their data, their people, and their reputations through
the development of online policies and employee training. Liza Barry-Kessler, Managing Partner of Privacy Counsel LLC, has 15
years of experience as a privacy professional, is a nationally known, award-winning blogger and co-author of two books, Privacy
in the 21st Century: Issues for Public, School, and Academic Libraries and the Global Internet Policy Initiative’s Advocacy
Training Manual, and a contributor to the book Mothering and Blogging. For more information, visit www.privacycounsel.net/.

Company to Hire More Rural Based Professionals due to Increasing Number of Government Projects

TWO RIVERS, WI (October 6th, 2009) – Rural America Onshore Sourcing of Two
Rivers has been certified as a minority-owned business by the State of Wisconsin
Department of Commerce. Rural America specializes in providing companies with lower
cost outsourcing services in the United States at savings of 25 to 40 percent over the cost
of more expensive urban areas and without the risks associated with taking that work
offshore.
The minority owned certification makes Rural America eligible for a five percent bid
preference on state purchasing contracts in an effort by the State to increase opportunities
for minority firms to sell their products and services to the State of Wisconsin. It also
makes the company eligible for technical and marketing assistance.
Christopher Hytry Derrington, CEO of Rural America, says it took six months of work to
achieve the certification. “It’s a rigorous process, as it should be,” he said. Hytry
Derrington added that the office of State Representative Ted Zigmunt provided the
company with valuable assistance. “He and his staff were very helpful in helping us
through the process and they’ve been supportive as we’ve been growing our operations in
Wisconsin since expanding here in the summer of 2009.”
Rural America currently has Business Development Centers in Wisconsin, Ohio and
Kentucky with expansion to 19 more states by end of 2011. Marty Gardocki, Vice
President, says the minority designation gives Rural America even more advantages to
help keep jobs in America and continue its expansion in Wisconsin. “We hire people in
rural areas rather than sending that work overseas to China or India, or to big cities in the
U.S. where labor is much more expensive. We also offer an attractive alternative to the
growing number of companies that are taking work back from foreign vendors due to
concerns over cost and quality.”
Hytry Derrington noted that onshore outsourcing, often called “onshoring”, continues to
be a growing trend in corporate America. “Companies are trying to cut their labor costs
by outsourcing their non-core work and many back office functions like information
technology. We can help them get that work done for less by using rural professionals,
and keep those jobs here in the United States. Delta Airlines and Sallie Mae are two large
companies that have recently cancelled overseas outsourcing agreements.”
Rural America offers services in a wide range of expertise that companies are getting
from urban and offshore providers:

 Custom Software Design/Development
 Web/ Social Media /SEO
 Business Intelligence Services
 QA Testing & Test Automation
 ERP Implementation Services
 Legacy Maintenance & Support
 Program/ Project Management
 Document Management Services
 Interactive Market Research
 Data Processing
 Business Process Optimization
About Rural America Onshore Sourcing
Rural America Onshore Sourcing is a USA-leading onshoring company. It has state
headquarters and Business Development offices in Wisconsin, Kentucky, and Ohio and
plans for expansion to 19 more states by end of 2011. A minority owned company, Rural
America Onshore Sourcing enables customers to cut their project and labor costs by up to
40 percent. Rural America Onshore Sourcing provides information technology and
business process outsourcing services using lower cost rural-based professionals so that
companies don’t have to send projects offshore or use expensive urban vendors. More
information is available at http://www.ruralamericaonshore.com/.
###
For further information, contact: Christopher Hytry Derrington, 888-884-4348, or
Chris@RuralAmericaonshore.com, http://www.ruralamericaonshore.com/