5 Cons of Offshoring
When it comes to outsourcing software development, the offshoring business model has grown exponentially as organizations look to reduce costs, streamline processes, and reap the benefits of specialization.While there are benefits to offshoring, many organizations have learned that there are drawbacks, as well. Before you commit to working with an offshore development partner, take a look at five cons to offshoring.What's the Difference between Offshoring and Outsourcing?Before diving into the disadvantages of the offshoring model, it’s important to understand the differences between offshoring and outsourcing. In recent years, these two terms have been used interchangeably because some of the aspects of these processes are present in the other.Outsourcing is a practice used by companies to transfer portions of work to outside suppliers rather than completing it internally. The most significant factors for outsourcing usually relate to cutting costs and reducing internal infrastructure Outsourcing is an “umbrella” term, and while the process has been used for years in functions like accounting and legal, it has become wildly popular in software development and support.Offshoring happens when you relocate the work to a different country and is a form of outsourcing. An example of offshoring would be when a company from within the United States works with a company located in India or China for a specific project. So, offshoring is always outsourcing – but not all outsourcing is offshore. Make sense?SEE OUR VALUE COMPARED TO OFFSHORETime Zone DifferencesOne of the biggest disadvantages of offshoring is time zone differences. Many offshoring companies operate within a 5-12 hour difference from their client, meaning work schedules may need to be adjusted to accommodate your offshore partner.Furthermore, unless your offshore partner commits to staffing late night shifts that work with your company’s time zone, you may have to wait for responses from the offshore staff. These time differences can also lead to lengthy delays in project deadlines as both companies struggle to accommodate each other. Misaligned work schedules cause internal friction as the staff must tolerate unnatural working hours that don’t provide the responsiveness and speed required in the digital economy.Communication and Language IssuesWhen working with a company from a different country, it’s usually safe to assume that most people on your team speak English as a second language. When working with someone who natively speaks another language, this can make communication and collaboration a unique challenge even if they speak English with relative proficiency. So, even though a team can speak English very well, that doesn’t mean that communication will be as smooth as it is when communicating with someone who is a native speaker.Cultural and Social DifferencesEven if the language barrier can be overcome or minimized, an overseas team can have cultural and social practices that you’ll have to accommodate.For example, if you contract an agency from India, they can have up to sixteen public holidays a year depending on their regional location. Couple that with the United States’ ten public holidays, and that is twenty-six days a year that rarely coincide. While a handful of team members might tolerate Christmas Day conference calls, it’s more “Bah, Humbug” than “Happy Holidays.” So, you must consider the impact of the fragmented calendar during the project and how it’ll affect your deadline.Work styles will also exhibit social differences. For example, it’s considered acceptable and expected for a North American worker to be assertive and straight-forward. However, this is not always the case in other cultures which view the employer-employee relationship very differently. These cultural variations dilute the valuable input and feedback loops expected in Western business, creating an increased potential for offshoring issues to arise.The discrepancies in cultural and social practices can also lead to misunderstanding of complex business problems. This in turn leads to business and personal misunderstandings, and challenges that wouldn’t be the case when everyone on a team has a similar overall business dynamic.ProximityThinking about visiting your offshoring partner? This could be difficult considering the distance, costs, and time spent traveling to an overseas location. Plan to spend at least 15 hours in the air if you’re flying from New York to New Delhi, If regularly meeting with your partner and having face time is essential to your company, offshoring may not be the right fit for your business’ needs.\Geopolitical UnrestThe unstable political climate in prominent outsourcing countries can cause increasing geopolitical risks for businesses. For example, Ukraine is a popular outsourcing location, but is frequently a victim of political unrest which can flare up without warning. This is true of many developing countries that are generally go-to’s when looking to outsource work.Whether the issue is a government shutdown, military coup, riots over an election, or pressure involving drug cartels – all of these “far away” issues could quickly become much more real when your project or business is directly impacted because of the fallout.Displacement of U.S. JobsCritics of offshoring note that the level of unemployment in America increases as more jobs move overseas. For example, if you outsource jobs to India, one of the disadvantages is that there’s less opportunity and open positions for qualified Americans, which can hurt the national economy and livelihood of cities and towns across the country.By choosing a provider in the US, that creates more open positions for qualified local individuals and helps to bolster our economy rather than sending money overseas.An Offshoring Alternative: Onshoring within the United StatesFortunately, there’s no need to look overseas for quality software development outsourcing. A simpler and more effective outsourcing alternative is onshoring.Onshoring offers improved communication and increased productivity between both parties, while still working to reduce costs. It also eliminates the risks of compromised IP and data, geopolitical uncertainty, and contextual misalignment.For example, a company located in Los Angeles or New York City can reduce costs by contracting services from a company located in smaller cities in Middle America, where living costs and prices are much lower.The blend of finding quality talent at an affordable price point is quite advantageous for companies located within the United States. By working with a company located in the same country, both parties will benefit from more convenient time zones, faster and cheaper business travel, and easier collaboration.Rural Sourcing: The Nation's Leading Onshoring PartnerIf you’re looking for an onshore alternative for your organization’s IT solutions, Rural Sourcing can help. As the leader in domestic IT sourcing, Rural Sourcing’s innovative domestic model eliminates the obstacles of data security, IP protection, political concern, time zones, distance, language barriers, and more. We help keep jobs in the United States, and provide high-quality work at a fraction of the price of providers in major metro areas.With development centers strategically located throughout the United States, Rural Sourcing provides world-class solutions for organizations across various industries including pharmaceutical, healthcare, high-tech, insurance, and consumer & retail goods. Get in touch with us today to learn more about our capabilities, and to see how we can help your business outsource responsibly and economically without compromising quality.NEED HELP? LET'S TALK.
Three Reasons the U.S. is Built for Remote Success
We’re in what may be a ‘new normal’. COVID-19 has forced businesses around the globe, that are able, to adopt remote work policies for their employees. For many companies, this is uncharted territory.In the U.S. tech industry, remote work isn’t a stretch. Companies have been experimenting with the idea for quite some time with increasing levels of success. But to be successful in a remote working environment, there are certain critical infrastructure and cultural points that must be met. As a result, the U.S. geography is well positioned to succeed in a remote work environment.InfrastructureThe U.S. has great infrastructure. From reliable power grids to fast internet, and soon to be faster with 5G, we are leading in many areas that are critical for success in a modern work environment.Internet speeds and availability are two of the key points that demonstrate America’s strong position. According to data, U.S. broadband speeds are some of the fastest in the world. Beyond speed, there is nearly ubiquitous access to high-speed internet, which showcases an infrastructure that can handle the shifting workforce needs.In many popular offshore areas, data and development centers have dedicated broadband pipelines, but during a crisis when a center must close, there are limited options to maintain operations. Quite simply, there is not enough infrastructure to support a remote working environment at scale.The U.S. has the infrastructure to be successful, meet customer needs and innovate.Distribution of WorkforceIn the U.S. there is tech talent throughout the country. That means you can find technology professionals from the East to the West Coast and all the “flyover states” in between. Just look at Rural Sourcing. We have six software development centers in Middle America—outside of the traditional tech hubs.Our talent isn’t clustered in massive centers. We’ve found that having smaller centers, maxing out at 150 colleagues, is the ideal size to promote collaboration, innovation, and culture. We have talent spread out across the country, allowing us to provide a stable, high-quality, and committed workforce. That means less risk and better results.Smaller Learning CurveRemote work is nothing new for the U.S. A Gallup study finds that 43% of U.S. employees work remotely some or all of the time. Culturally, we have embraced the model for a number of years. Not at this scale, but the learning curve is small for a remote work culture.Beyond the volume of people already working remotely, numerous studies have shown that remote workers are more productive and profitable than in-house employees. The workforce is there and able to meet customer needs.Whether the remote work is a temporary or permanent fixture of our economic landscape, the onshore development model is well positioned to thrive. We are ready and able to get the job done—on time, on budget and in your backyard.NEED HELP? LET'S TALK.
The Best Places to Work in Tech
Silicon Valley. New York City. San Francisco. Read any of the countless articles about where to find the best tech jobs, and it’s more than likely that cities like these will be at the very top. With endless entertainment, dining, and cultural opportunities, it’s no wonder that so many people choose to live in these areas. But with a large number of amenities, comes a big drawback: a very high cost of living. That’s why I’d like to make the case that our six development center communities have just as much to offer as their larger counterparts, at a much lower cost for our colleagues. Take a look at my list for the best places to work in tech.Jonesboro, ArkansasOur very first development center is located almost smack dab in the center of Middle America. Home to Arkansas State University, Jonesboro has housing that’s an enviable 26% lower than the national average. It’s also a city full of natural beauty, with Craighead Forest Park and Crowley’s Ridge Nature Center providing ample opportunities for exploring the great outdoors. Augusta, GeorgiaWhile most people know Augusta as the city of the Masters golf tournament, to us, it’s home to over 120 of our colleagues. Located on the Savannah River, the city has tons of history, and was even the state capital at one time. A recent exciting addition to Augusta’s economy is a number of film and TV productions taking place, thanks to the filming tax credits offered by the State of Georgia.Mobile, AlabamaSan Francisco and New York City aren’t the only tech hubs located on the ocean! You’ll find Mobile right on Alabama’s beautiful Gulf Coast. The city has a booming culinary scene, with Dauphin Street (Mobile’s answer to New Orleans’s Frenchman Street) and its many restaurants and bars. Looking for a family-friendly Mardi Gras experience? You’ll definitely want to visit Mobile during their annual celebration, which is the oldest in the U.S.Albuquerque, New MexicoHow does an average of 310 sunny days a year sound to you? In Albuquerque, great weather and lots of natural beauty make it a city you’ll want to get out and explore. Home to the Sandia Mountains, which offer breathtaking views and skiing opportunities, Albuquerque also has myriad art galleries, and hosts the country’s largest balloon festival.Oklahoma City, OklahomaOklahoma City has gone through an incredible transformation over the past 10 years, especially downtown, with additions including the Devon Energy Center, a 50-story office building; The Jones Assembly, a restaurant, bar and live music venue; and Scissortail Park, which hosts farmer’s markets, concerts, and is the home of the USRowing National High Performance Center, a U.S. Olympic and Paralympic Training Site. With a cost of living that’s 15% below the national average, OKC offers our employees a great value. Fort Wayne, IndianaIn this city of over 250,000 people, endless entertainment options is just one of the reasons we decided to call Fort Wayne home to our newest development center. Lots of unique festivals, including the annual BuskerFest dedicated to street performers, and a thriving arts scene mean there’s no shortage of things for you and your family to do. In fact, SmartAsset.com named it the #1 place to raise a family in the United States.Beyond the many amenities offered by our development center cities, our one-of-a-kind culture provides opportunities for you to cultivate a rewarding career in tech. With challenging and exciting projects in a highly collaborative and supportive environment, Rural Sourcing is committed to creating high-quality jobs throughout Middle America.Looking for your next tech role in one of these fantastic cities? Check out our careers page to learn more about what’s waiting for you at Rural Sourcing.
Changing the Client Experience
“Change the experience” is one of Rural Sourcing’s core values, and we’re constantly striving to do just that for our clients. From establishing our team-based account management process (TBAM) for optimal client communication, to our client-focused Innovation Framework, we know that when our clients succeed, we succeed. That’s why we recently doubled down on this crucial commitment. Scott Monnig, our former EVP of Professional Services, has been promoted to the newly created role of Chief Client Officer (CCO). Scott has proven his ability to navigate complex projects by building a foundation of trust with many of our largest clients. Scott’s organization helps us deliver with more intimacy and effective communication with our clients than can be provided by offshore or nearshore organizations.Creating a great client experience has always been at the forefront of everything we do. So how do we do it? We start by engaging our entire organization. Our colleagues are co-located in our development centers across Middle America, and by doing this, we’re not just a collection of individuals, but a true team. We bring thoughtful engagement, innovative thinking, and strong delivery; concepts that we’ve learned from 13 years as a pioneer in this space. To us, changing the experience for our clients isn’t just a turn of phrase, it’s a commitment to providing the best and brightest ideas from the best and brightest people.Scott Monnig, Chief Client OfficerIn today’s fast-moving tech world, our clients require a nimble, agile approach, coupled with the ability to be proactive and respond quickly. That’s why we rely on consistent and continuous collaboration with our clients and across our six development centers. This collaboration brings fresh ideas that not only move our clients’ business objectives forward, but also results in serious growth. In other words, we don’t just do what our clients ask us to do; we enact a proactive strategy from the beginning, so they feel supported, inspired, and ready to conquer their goals, knowing they’ve partnered with the right team.It’s because of our talented team that we’ve been experiencing serious growth at Rural Sourcing. Colleagues here, including Scott, care deeply about our clients, and work diligently to help them succeed. With the creation of his new role, I’m confident that Scott will continue to drive our value of changing the experience for our clients, and our colleagues.LEARN MORE ABOUT OUR TEAMS
Software Development Staffing and the Sixth Man Principle
With college basketball season heating up and March Madness right around the corner, I’m reminded of the sixth man concept that Rural Sourcing has used since its early days. As in basketball, the sixth man concept is all about having a ”non-starter” prepped, practiced, ready to enter the game and immediately start contributing to the team. This concept is core to Rural Sourcing’s sixth man principle. For many of our strategic accounts we deploy an extra colleague to participate in the upfront strategy and design sessions, kickoff meetings and daily stand ups so that when their time comes they’ll be prepared to hit the court at full speed. Their time may come due to an injury, an illness, paternity or maternity leave, or maybe just a packed sprint that needs the extra help. Whatever the cause, we know that this sixth man will be able to step in, run the offense and execute the game plan because they’ve been to all the practices. But wait, why would an enterprising, software development firm place a non-billable colleague onto a team? Our rationale is that it’s good for the client, good for the colleague, and in the long run, it’s good for us. For the client, it’s the assurance that they know there’s a backup waiting to get in the game in case something happens. For the colleague, it’s a better use of “bench time,” and it keeps them fully engaged in the project at hand. That’s why, as the season progresses and March Madness arrives, pay special attention to the sixth man players. I bet you’ll find that even though they have less time on the court, they still make a big impact on the final score.NEED HELP? LET'S TALK.
The development of innovative software requires an Agile mindset, and the ability to change course and flex on scope when necessary, in a way that minimizes cost and maximizes innovation.Accordingly, a core principle of Agile software development is the emphasis on embracing changing requirements throughout the process. Many companies have adopted Agile for this very reason – to get faster, more innovative outcomes through real-time market and user feedback.This requires resource flexibility, scalability, and speed in order to adjust to constantly changing specifications. This combats the key challenge many companies face of finding and scaling necessary software development teams for effective Agile development.Scrum-as-a-Service is a unique engagement framework for Agile software development that helps clients develop mission critical software with speed, flexibility, and efficiency. This approach gives clients easy access to cross-functional teams of experts (also known as Scrum teams) who develop high-quality working software in a way that encourages innovation and maximizes time-to-market.What does Scrum-as-a-Service provide?Proven Agile ExpertiseAssembling Agile software development teams from scratch is daunting, to say the least. Sourcing experienced Scrum Masters and Agile professionals familiar with the practice’s many nuances (Kanban, Scrum, Lean Agile, Scaled Agile, etc.) can be a challenge. With Scrum-as-a-Service, each team has the necessary Agile skills, experience, and best-practice knowledge required for success. This means that you can bypass the grueling process of spending weeks or months trying to find and assemble the right people and skillsets for the job.Rapid ScalingInitially assembling a qualified Scrum team is just the first piece of the puzzle. You need to be able to adjust your approach and flex on scope as work progresses. This means resources and skillsets need to be accommodated as well. A Scrum-as-a-Service approach allows you to easily scale up or scale down teams as required, using just the right mix of technical skillsets and capabilities.In addition, Scrum-as-a-Service teams are capable of scaling to providing end-to-end life cycle services. These include development, testing, integration, deployment, and support. And whole teams can easily be moved to new projects as company needs arise.Multidisciplinary Skills On-tapOf course, Agile development projects require the general expertise of scrum masters, developers, and designers. But that’s just half the battle. Varying demands often require the know-how of highly-specialized experts. The Scrum-as-a-Service model provides you with a customized team based on your specific project requirements. Whether its high-powered UI/UX, data, cloud, AppSec, QA or DevOps, you can assemble the ideal team that’ll drive innovation and speed to market.Team Chemistry and ContinuityEffective teams must know and trust each other. They also need to figure out each other’s strengths and weaknesses. This generally takes time. A lot of time. Scrum-as-a-Service has the advantage of providing you with experienced Scrum teams that have previously worked together, saving time, and removing friction. As multidisciplinary teams scale and new challenges are tackled, a virtuous cycle of innovative delivery and team engagement is created.Business Alignment and Ownership of OutcomesScrum-as-a-Service is an approach that puts the company and product’s success before everything else. Once hired, Scrum teams become an extension of the client’s company, and team members know they succeed only when the client succeeds. This level of commitment is one of the key differences between Scrum-as-a-Service and traditional contracting. Contractors often limit their efforts to the mere fulfillment of the contract agreement related to basic cost, scope, or service-level parameters. They can fail to see the full picture and often act more like hired mercenaries than team players.Our Unique Scrum-as-a-Service ModelRural Sourcing provides Scrum-as-a-Service through development centers exclusively located in mid-sized cities throughout Middle America. With an average of 10 years of experience, our Agile software development experts understand U.S. consumer culture and common business practices. They operate within similar time zones as our clients for the real-time collaboration necessary for Agile development.Rural Sourcing’s ability to remotely provide Scrum-as-a-Service at high velocity is unrivaled in onshore software development. More importantly, our clients and case studies back it up. Our co-located Agile teams can deliver 2.5x – 4x the velocity of offshore teams and a 15% – 30% efficiency advantage over onsite contractors.In addition, Rural Sourcing’s Agile development services are structured to meet our clients’ needs wherever they are on their Agile journey. We’re here to help you embrace the Agile development mindset, so modernization, reinvention, and innovation always stay top of mind.INTERESTED? LET'S TALK.
DevOps: Critical for Market Speed and Innovation
In today’s digital arena, businesses must quickly react to, or even predict, customer desires and market demand. The development and deployment of innovative technology must happen just as quickly. Accordingly, IT leaders are abandoning the diametrically opposed goals that previously placed Development and Operations groups in conflict.Traditionally, Development set out to build and deploy the capabilities the business needed, while Operations kept the infrastructure stable and fast. Development teams bundled new functionality and system improvements into periodic updates to appease the Operations teams’ resistance to any change that could disrupt system operations.Operational Overview of IT – Before DigitalDepartment Functional Perspective Responsibility Timeframe Development Silo Build the functionality and capabilities the business needs Quarters to years Operations Silo Keep the infrastructure running smoothly with as little change as possible Ongoing This chart captures the roles and responsibilities of Development and Operations groups in a traditional IT organization.In this digital age, the diametrically opposed goals of Development and Operations are falling by the wayside. A united DevOps process and supporting culture, which requires both sides to see beyond their respective functional silos, unites IT staffers behind a single, shared goal: to enable the business to compete and win.Operational Overview of IT – After DigitalDepartment Functional Perspective Responsibility Timeframe Development Blended and collaborative Build the scalable functionality and capabilities the business needs Create, test and produce 50 to 100 microservices simultaneously Rolls out “50 deployments” a day DevOps explained: This chart shows how the newly melded DevOps model unites IT organizations in the digital environment.While definitions of DevOps’ mission and culture vary from organization to organization, Rural Sourcing aligns itself with Gartner Group’s view of DevOps in the digital age:DevOps represents a change in IT culture, focusing on rapid IT service delivery through the adoption of agile, lean practices in the context of a system-oriented approach. DevOps emphasizes people (and culture), and seeks to improve collaboration between operations and development teams. DevOps implementations utilize technology — especially automation tools that can leverage an increasingly programmable and dynamic infrastructure from a life cycle perspective.IT organizations’ move to a DevOps model and culture refocuses technologists’ view away from technical infrastructure onto the needs of the business. This sea change in the way IT approaches its work requires speed, not for speed’s sake, but for competitive advantage. Through microservices, DevOps organizations can leverage digital tools and technologies to engage IT staffers and compress the speed-to-revenue cycle.By embracing the DevOps model, it enables Rural Sourcing to deliver software in a frictionless environment. Our teams work seamlessly across the “old school” borders of development and operations to provide solutions at the right speed for your organization. In a digital world where delays result in a declining competitive position, Rural Sourcing can help set up your business for success. We’ve integrated the use of the latest technologies including development and release automation, behavior-driven development, cloud delivery and container management to continually deliver a bug-free product.LET'S CONNECT
Why Rural Sourcing is the Next Starbucks
Confession time: I’m a Starbucks fanatic. For me, the day hasn’t begun until I’ve had my triple grande nonfat cappuccino. In fact, the company's former CEO Howard Schultz is someone whose leadership and guidance I've always admired (I’m the proud owner of an autographed copy of his book: Onward.) It was Schultz’s idea to create a third place to have coffee: a place that wasn’t your home or office. This vision created a new alternative at a scale that didn’t previously exist. The Rural Sourcing business model follows the same concept. Up until recently, businesses had two options for their IT workforce strategy. Businesses could bring in the talent to their office in their city, often at expensive hourly rates, or they could offshore the work to an outsourcing firm for less expensive hourly rates and figure out how to manage the cultural, security, IP, and time zone challenges. At Rural Sourcing, we saw the need to create that third option at scale. Small cities, big opportunities Onshore domestic technology talent is abundant in smaller cities such as Albuquerque, NM; Oklahoma City, OK; or Mobile, AL. These cities, complete with large universities, low cost of living and high quality of life, represent millions of available technology talent waiting to be deployed to solve software problems for the world’s greatest companies located in much higher cost locations. Rural Sourcing selects cities like these based on our proprietary data analysis of the qualified talent pool, the quality of life and the affordability of living in these locations. We then establish software development centers complete with the look and feel of a “Google-esque” environment, where software developers and quality engineers can focus on creating applications to support our clients on their digital journeys. The beauty of this third option, unlike Starbucks, is that it actually costs less than the other available options. With a substantially reduced cost of living in these smaller cities, the dollar goes a lot further than in San Francisco, New York, or even Atlanta. Also, when measured against offshore, domestic sourcing is more cost-effective when evaluated by the total cost of ownership (TCO) of completing a successful project in today’s agile software development world. The right blend I’m not saying that businesses shouldn’t consume the available talent within their own cities or even offshore, as both have their respective roles to play in the sourcing strategy. What I am saying, however, is that there’s a new coffee shop available that serves a remarkable third alternative that may just taste better than your traditional sources. Find out more about our unique blend of services here.NEED HELP? LET'S TALK.
2020 Tech Trends: New Decade, New Opportunities for CIOs
With a new year and a new decade, we’re taking a look at opportunities for our clients and the state of the technology market. As we’ve talked with our clients and studied the industry, we see two themes emerge.Expansion of Artificial Intelligence/Machine LearningA Full Transformation to Cloud TechnologiesArtificial Intelligence (AI)We’ve heard a lot about AI over the past few years, but for most enterprise companies this narrative has been about a leading-edge technology in search of good use cases. All that is set to change. AI is going from an R&D or pilot programs to the mainstream. That will have a massive impact on businesses of all types.We’re seeing a massive investment in AI. According to Gartner, 37 percent of organization have implemented AI in some form. That’s a 270 percent increase over the last four years. That shouldn’t come as a surprise, since spending on AI systems has increased drastically as well. The IDC reports a 44 percent increase from the prior year to more than $35 billion in 2019 and that number is expected to grow another 30 percent in 2020 according to Axios.There are opportunities to utilize AI through almost any technology or industry. Marketing and sales have been early adopters and believers in machine learning, but the use of AI will become ubiquitous in business operations as the decade progresses. Through AI, leaders and CIO’s can make better decisions by removing unconscious biases, allowing them to potentially find hidden truths, spot patterns and predict the future with more accuracy.Cloud TransformationCloud Transformation has also been a hot topic for a number of years in tech. In 2020, it will take a leap further.Initially, companies pursued the Cloud for server capabilities and infrastructure improvements, ie. getting rid of their own servers and data centers. In 2018, Gartner reported that the worldwide public cloud services market was $182.4 billion. In 2019, that number was up 17.5 percent.In mid-2019, Gartner had this to say:“Cloud services are definitely shaking up the industry,” said Sid Nag, research vice president at Gartner. “At Gartner, we know of no vendor or service provider today whose business model offerings and revenue growth are not influenced by the increasing adoption of cloud-first strategies in organizations. What we see now is only the beginning, though. Through 2022, Gartner projects the market size and growth of the cloud services industry at nearly three time the growth of overall IT services.”That puts things into perspective and shows the scope of what is to come.We are seeing our clients utilize the Cloud to replatform and modernize their business applications to take advantage of the advanced technical development capabilities of the cloud platforms. Through the cloud, clients are embracing containerization, microservices, machine learning and natural language processing skills.2020 will continue to move the Cloud Transformation forward. We will see innovation and increased adoption as CIOs position their companies to succeed today and in the future.NEED HELP? LET'S TALK.
Onshoring Software Development – Good for Budgets, Good for the Economy
As the tech industry continues to boom, the demand for developers, IT staff and tech professionals isn't slowing down any time soon. For decades, businesses tried to lower costs by offshoring their technology needs to other countries, however, they soon learned the unique challenges of offshoring such as time zone difference, language barriers, and cultural misunderstandings. These seemingly minor annoyances can cause some major problems: project delays, quality issues, headaches, and higher costs. As businesses’ needs transitioned from lowest cost provider to a focus on quality, and the need to develop software fast and “right the first time” (and still within budget!) – more and more businesses chose not to offshore and instead look for a better alternative. Rural Sourcing understood these challenges and helped introduce a new way to outsource development that not only helped companies achieve their IT goals, but also helped local economies capitalize on and retain their best tech talent. Onshoring Software Development Work to Help Businesses & Local Economies Founded with the goal of connecting companies with talented, qualified IT professionals, Rural Sourcing has brought thousands of jobs back to the US in midsize cities across the country as part of its domestic sourcing model. Not only does Rural Sourcing’s model bring tech jobs back to the United States, but it also does so in a way that supports small to mid-size local economies and creates opportunities for the tech professionals who call these places home. Instead of building development centers in large metropolitan areas like Silicon Valley and Boston, Rural Sourcing establishes centers in smaller pockets across the country such as Alabama, Arkansas, and New Mexico, where the cost of living is less expensive and there's a wealth of tech talent from universities and other businesses in the area. The opportunity to work at a Google-esque development center and with Fortune 1000 companies is incredibly enticing for tech professionals who have the skills to work in Silicon Valley or NYC, but prefer to live in a smaller area for a variety of reasons, including economic, family, or even just personal preference. As a result, companies that work with Rural Sourcing benefit from high-quality services at affordable prices, and thousands of jobs are created that can have an enormously positive ripple effect on local economies. It's a win-win-win for tech professionals, companies, and the cities our development centers call home. Measuring the Economic Impact of Rural Sourcing on Communities To figure out Rural Sourcing's true economic impact, we reached out to the James M. Hull College of Business at Augusta University in Georgia. The team measured our economic impact by using an input-output model in IMPLAN software. This model allowed Augusta University to examine the economic linkages within the economy that exist between businesses and other businesses, and businesses and the final consumers. In short, we wanted to know how much our development centers helped boost the economies where they're located. As a result, the team was able to provide a comprehensive assessment of our local economic impact, which considers the number of jobs created and sustained, as well as the total output, in dollars, that is contributed to the local economy. The Results: Rural Sourcing's Positive Economic Impact The impact of Rural Sourcing on its communities is far more than just the number of jobs created. With more jobs in local communities, people have more disposable income to spend, which trickles into the economy and supports local businesses. When it comes to measuring Rural Sourcing's total economic impact in just one community, the results are astounding. The study found that Rural Sourcing had a total economic impact multiplier of 3:1. In other words, for every dollar put into the community in the form of payroll or capital expansion, that dollar gets multiplied by 3 times. If we expand this economic impact to reflect each of the six development centers across the U.S., Rural Sourcing is responsible for contributing $100 million-$150 million annually to the surrounding local communities. Typically, Rural Sourcing agrees to ten year commitments for job creation so extrapolating today’s level of investment in these communities across the ten year commitment means we have a $1 billion-$1.5 billion impact on our selected communities. Our Commitment to Creating High Quality Jobs in the United States Rural Sourcing is taking huge steps to support the American dream. While other conglomerates have favored larger metro areas, Rural Sourcing has fostered innovation and growth in small cities across the United States. And we’re incredibly proud of the impact we’ve made: by stimulating job growth in America, we've helped local economies grow by more than $100 million. NEED HELP? LET'S TALK.
Gartner: Geopolitical Uncertainty Brings Risk to Offshoring
There has always been risk associated with outsourcing software development. The question of which outsourcing option (offshore, near shore, onshore) is right for a CIO depends on an equation that addresses price, speed and risk.That equation keeps changing as the risks of offshore rise.A recent Gartner report outlines major geopolitical concerns that are impacting both offshore and near shore development.“Political and economic stability is an important factor in offshore outsourcing arrangements,” said Jim Longwood, research vice president at Gartner.The outsourcing market has been relatively stable for the past few years, according to Gartner. But that may be the quiet before the storm. Recently, we’ve seen terrorist attacks in Sri Lanka, a trade dispute between the US and China and political tensions in Hong Kong. These global incidents demonstrate the potential dangers of relying on offshore development.“Gartner has started fielding more questions from clients about how to address these scenarios. This includes whether to stop sourcing services from a particular country, move services to another country or bring them back onshore. Each option is quite costly and can disrupt service delivery in the short-to-medium term.”For example, Gartner estimates that China exports around $10 billion of IT application and business process services. Indian outsourcing firms generated more than $45 billion in global services in 2018.“Concerns include potential disruption to or cessation of services, increased tax added to export labor rates and reduced quality of service due to ‘patriotic’ backlashes by local staff,” said Longwood. “However, instability is not limited to the U.S./China situation. All organizations should review their offshoring and nearshoring arrangements.”With so much instability with offshore development, it is critical for companies to proactively mitigate risk to ensure the stability of their systems. According to Gartner, that is leading companies to develop a multi-country sourcing strategy. Gartner predicts that by 2023, 65 percent of large companies will switch to a multi-country sourcing strategy.The relatively new category that has been added to the procurement strategy for many companies is the low-cost, onshore development.We’re seeing more and more companies add the category as a strategic sourcing bucket to meet ever growing digital demand. Onshore outsourcing can be competitive while bringing the added benefits of speed, improved communication and lower risk. By finding tech talent in Middle America, where there is a lower cost of living, companies can lower costs while maintaining the high level of quality and security that CIOs, CISOs, and CTOs demand.Organizations cannot control geopolitical unrest, but they can control their exposure to risk. Onshore software development is the solution needed to manage risk, lower costs and ensure development work meets goals of speed to market and quality.DISCOVER MORE
Where Are the Cost Savings and Advantages through Cloud Transformation?
As technology evolves, CIOs are looking to the Cloud. Embracing the Cloud Transformation is about more than just keeping up with the competition. It offers significant advantages that can be a game changer for innovative companies.Cloud technologies are great for enterprises looking to offload the overhead of server and hardware maintenance, which allows them to focus on building solutions for customers. One of the key benefits of the Cloud is the ability to prototype complex architectures in minutes. Additionally, if something doesn’t work, then it can be reworked quickly foregoing the approval process and money required for capital expenditures, yielding significant cost savings.Cloud Transformation was center stage at this year’s Cloud Summit in Albuquerque, N.M. A panel moderated by Rural Sourcing Chief Operating Officer Ingrid Miller looked at the options and benefits for companies moving to the Cloud in today’s tech climate.“When building out a Cloud architecture, services like AWS Cloud Formation and Azure Resource Manager enable businesses to create templates for their environments,” said Brandon Avant, principal consultant, Rural Sourcing. “This allows architects to quickly script out the resources that their business will need and make necessary modifications along the way. By doing this, they can mitigate the tedious process of manually creating and linking resources, which allows businesses to focus on more important endeavors, such as developing their enterprises’ applications.”With multiple Cloud-based options, there are some key considerations when making a decision between Azure, AWS and Google.“Spend time thinking about compliance and security requirements prior to investing in a Cloud-based solution for your enterprise,” said Mathew Zannoni, senior consultant, Rural Sourcing. “Sometimes the best solution to adhere to regulatory constraints is to take a hybrid approach. Azure now offers many different connectors that make it much simpler to create complex hybrid solutions to connect on-premise resources to Cloud-based resources.”As with any development or digital transformation, cost is a consideration. The panel experts say there are cost savings to be had, if you know where to look.NEED HELP? LET'S TALK.“As you get started using the Azure platform it is a good idea to pay close attention to the various costs involved,” said Zannoni. “There are many ways to optimize spend and reduce the overall cost of cloud solutions. I recommend spending some time examining different pricing scenarios using Azure’s cost calculators. This is one area where planning ahead can realize thousands of dollars in savings each month.”In addition to cost savings, the cloud offers businesses access a variety of managed service at massive quantities of scale, giving access to cutting edge solutions and new efficiencies.“Almost any cloud provider you will find presents their offerings as metered services,” said Jarred Kozlick, senior consultant, Rural Sourcing. “This allows business to convert IT expenditures that were conventionally capital costs into operating costs, only paying for the resources consumed. This model allows business to pay for only what they use, and always have the resources they need, leading to reduced costs while still being able to scale applications based on usage.”Cloud providers also offer numerous managed services, such as databases and messaging queues. As Kozlick notes, using these services allows developers to focus on solving business problems instead of managing infrastructure.The move to the Cloud represents an opportunity for CIOs looking for cost savings, efficiency and flexibility. Companies that have already embraced Cloud Transformation are reporting impressive results. It takes a forward-thinking CIO to put an organization on this path, but with the right vision, team and partners, a successful Cloud integration will impact more than just a company’s backend. Cloud Transformation can positively impact the customer experience and, ultimately, the bottom line.