Monday, July 5, 2010

The Rural America Growing

The concept came from the American market during the last couple of years. Though the concept is a bit older but has got the attention in the last couple of years. The term could be broken into rural and outsourcing and as the word itself implies means that outsourcing to the rural areas.

The eastern part of the country has not been much influenced by the technology boom prevalent in the western part. Some of the states in the eastern and central part could be termed as the rural America such as Alaska, Wyoming, Montana, North Dakota, South Dakota, New Mexico, Idaho, Nebraska, Utah, Kansas, Iowa.

According to the recent rural outsourcing the IT industry in these stares have started to flourish, though still in the initial stages but it promises a lot of potential. The IT companies which till this date were finding economical off-shoring nations like India and China to cut down in their production or development costs are now going to this rural America.

Reason for preferring rural America over other countries may said as better communication. The off-shoring industry has always suffered due to the bad communication channel between two countries or companies, the reason being many like: Difference in accent, vast difference in the time zones, different in management styles. All these differences could be avoided in the Rural outsourcing plus the comparative rates or the costs involved a just a bit higher than off-shoring to other countries like India or China.

Though as fancy as it sounds for the US software industry it would still take a decade for the rural America to reach up to the level of India and its a challenge for India to move fast in terms of quality and project management because India is no longer the cheapest resource available in the market.

1 comment:

  1. Precise Test with Good glimpse of Future, Not only for India other countries should start looking in this.

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