Rural sourcing or on-shoring is quickly picking up steam as a cost-effective alternative to offshore outsourcing. Many IMF members are reporting that their overall cost for offshoring is exceeding original cost projections. A common complaint is that the blended rate, including domestic resources to support the offshore team, added to offshore labor cost produces a total cost of about $50 per hour. Rural sourcing vendors are quoting rates around this $50 hourly mark. The on-shore alternative reduces network costs, language issues, and time zone problems generally associated with off shore arrangements.
So is it time to look at Rural Sourcing? In the IMF report, “Rural Sourcing: IT’s Onshore Alternative,” Monty Hamilton, CEO of Rural Sourcing, Inc. discusses the costs, benefits and limitations of rural sourcing. You will read about some of the driving forces behind this concept, the progress that has been made, and challenges that still exist. Case studies are provided to illustrate how rural sourcing can benefit an organization in a variety of ways.