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Moving IT Jobs from Offshore Outsourcing to Rural Onshoring

How Technology Jobs Are Being Brought Back to America

By Matthew Paulson, published Nov 13, 2006
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In the last century global economics have changed more so than they have in the last millennia. Previously we were held back from trading with our international partners by limitations of excess shipping and a high cost of communication. However with the advent of the Internet along with the development efficient and inexpensive international transportation of goods, location is becoming much less of a hindrance in doing business.

Through these new technologies, the highly competitive global marketplace allowed international companies to begin competing with corporations and businesses state-side, and domestic firms quickly realized that they would need to be more competitive if they were to survive in the market place. U.S. companies realized that they could make use of inexpensive labor in the same way that foreign firms could by moving some of their operations overseas or by contracting with companies overseas that have lower labor costs. This brought for the first instances of the “O” word, yes, outsourcing. The American Heritage Dictionary defines outsourcing as “The procuring of services or products, such as the parts used in manufacturing a motor vehicle, from an outside supplier or manufacturer in order to cut costs.“

Moving IT Jobs from Offshore Outsourcing to Rural Onshoring

Dell Inc. is one of many corporations beginning to move some of their service work to rural America

Credit: Dell Inc.

Copyright: Dell Inc.

Takeaways
  • Corporations have seen many problems come up when outsourcing service work overseas.
  • IT costs can be decreased by 50% when rural on-shoring, as compared to 15% to 13% when off-shoring.
  • Faculty and Students at Dakota State University are creating a firm to do on-shored contract work.
Did You Know?
Undergraduate students participating in rural on-shoring will be paid anywhere from $12 to $15 an hour, much higher than the going rate for students which is about $7 an hour at Dakota State University.
Resources
  • Onshoring: Keeping Jobs In Rural America (InformationWeek) Farmshoring (Wikipedia) Microsoft May Look to 'Smart Shoring' (ITBusinessEdge)
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