Is Offshore Outsourcing Really Cheaper?
Offshoring software development has become a common practice for many companies, having gained immense popularity over the last 10-15 years. So much so, that in India alone, outsourcing is now a nearly $150 billion industry. Why? It’s simple: offshore labor is much cheaper. But in reality, the hourly rate that you pay is just one factor when it comes to determining the actual cost of offshoring. Read on for four areas of potential hidden cost that may make you think twice about considering an offshoring investment. Project Management Costs A critical component to ensuring a successful outsourcing engagement is the ability to manage the project effectively. Time zone differences, frequent and fast-paced requirement changes, plus the inherent nature of agile software development means additional management and oversight needs can pop up unexpectedly. This leads to the possibility of teams getting stretched too thin while trying to coordinate communication among developers and stakeholders, across multiple time zones. Often, additional management resources must be put in place, which means additional cost. Resource Ramp-Up/Turnover Rates Depending on the offshore provider and your ability to command their attention, it may take much longer to ramp up the right resources necessary to meet your requirements. Unless you are a very large enterprise, you may have to wait in line for the best people. Additionally, if you’re working with a smaller or midsize offshore company, retaining top talent can be a problem which causes project delays due to the variability of resources being used on a project. Cultural and Communication Barriers The ability to communicate effectively with your outsourced development team has a direct impact on the timeliness and quality of deliverables. Cultural differences or misunderstandings can also affect how well teams work together, and sometimes cause unnecessary friction. In fact, in some cultures, maintaining positive relationships with clients is so important that in order to avoid any sort of tension, sometimes overseas colleagues will simply say what they think the other person wants to hear, instead of the true state of affairs. This is in stark contrast to the United States, where employees tend to value being straight forward and specific in order to get the job done as efficiently as possible. Additionally, a lack of understanding of how business is conducted in the U.S. or unfamiliarity with regulations can slow processes down. There may be less application of best practices and fewer innovative ideas as a result. Geopolitical Risks Economic, social or political strife can cause additional risks (and costs) when you’re offshoring. We’ve seen trade disputes between the US and China, more stringent H1-B visa restrictions in the U.S., terrorist attacks in Sri Lanka and most recently political tensions in Belarus. In other countries, health crises, ongoing violence and petty crime may make you less inclined to send employees to these areas, reducing important local training and vendor management time, and adding risk to service delivery. While there’s no doubt that the offshore model for software development has been an effective resource for many companies, it may not be the right fit for every organization or for every project. To determine your true cost of offshoring (TCO), use our free TCO calculator to help understand which outsourcing option may work best for your organization. TRY OUR TRUE COST OF OFFSHORING (TCO) CALCULATOR
Our Mission in Action: Jeanne Schmidt
Our guiding force at Rural Sourcing is our mission: to create high-quality technology jobs in Middle America cities where talent is often overlooked. Our Mission in Action showcases Rural Sourcing colleagues who represent how this mission impacts individuals and the communities in which we operate. Jeanne Schmidt has had an impressive career in tech. For many years, she worked at PeopleSoft in Silicon Valley, where she watched the company grow from only a few hundred people to over 10,000 employees. She learned a lot during her tenure at PeopleSoft, and really enjoyed the culture, but after Oracle’s acquisition of the company, certain things changed. The culture she had come to love was no longer in place, and frequent meetings at Oracle’s headquarters meant a much lengthier commute. As the mother of two young daughters, Jeanne wanted to make a change to support a better work/life balance for her family. Heading east With the high cost of living in the Bay Area, Jeanne and her husband decided to start looking for jobs in more affordable areas, preferably on the east coast to be closer to her family. After her husband got a job in Augusta, Georgia, Jeanne enjoyed being a stay-at-home mom for a few years while her children were still young. Eventually, she wanted to return to work, and spent a couple of years at other organizations, before getting a call from a recruiter at Rural Sourcing in 2013. Challenging but rewarding Working at Rural Sourcing presented an opportunity for Jeanne that otherwise might not have existed in Augusta: the ability to work for “an impressive list of clients” while living much closer to family, and with a higher quality of life. Jeanne says, “Since I started at Rural Sourcing, I’ve been able to watch the company grow and maintain its fun, positive culture. I’ve been impressed with the type of project work we do and the list of clients we have. This is challenging, rewarding work that has allowed me to grow in my career and mentor others.” DISCOVER MORE
The Need to Balance Work-from-Home and Work-from-Office
Work-from-Home (WFH) is here to stay. COVID-19 forced companies to adapt to the remote model or grind to a halt. Even companies that have previously resisted WFH have found most of their concerns to be unfounded. Some have even gone so far as to claim that the WFH/virtual model will be the dominant model going forward, and that offices are effectively ‘dead’. While there are significant benefits to a WFH model for many businesses, there are still potential downsides that technology alone can’t solve. After all, we as humans are social beings. There is a reason ‘solitary confinement’ is considered severe punishment! Human connection and interaction are essential to personal happiness. In-person team collaboration helps to build relationships, foster ideation and strengthen company culture. And there are ‘moments of serendipity’ that can only happen when working in an office environment. WFH Has Many Benefits Working independently from home provides numerous benefits for employees and businesses alike. These include: Employee flexibility and ‘spirit of freedom’, giving employees control over where and when they workHigher productivity. Although WFH has its distractions, this is likely outweighed by lower commuting times and a longer window for working hoursBroader ability to recruit talent from remote locations – not being restricted by commute times to local officesLower facilities cost due to less need for permanent space and related support systems But WFH Also Has its Downsides WFH is not all ‘rainbows and unicorns’ – some of the challenges include: Employee burnout and disengagement due to longer hours, more time online and a feeling of monotony. In a recent study from DigitalOcean on remote work, 82 percent of U.S.-based remote-working professionals report feeling burnt out.Maintaining company culture and unity is challenging due to minimal personal interaction and connection, which in turn impacts consistency of performance and employee retention.Less in-person collaboration and interaction also reduces the opportunity for those ‘moments of serendipity’ where new ideas are generated, or problems handled quickly. According to a recent PWC survey on remote working, the number one reason employees say they go into the office is to collaborate with other team members (50 percent). Difficulty collaborating is also the number one reason people give for being unproductive at home (39 percent).Ongoing skills and career development, as well as apprenticeship of junior employees can be a challenge, although this can be mitigated with investments in new systems, processes and training (both for managers and colleagues). Rural Sourcing – Taking a Balanced Approach The office isn’t obsolete, but it is changing. While the COVID-19 crisis showed that staff can interact well when apart, people still cherish in-person engagement with colleagues. Having colleagues interact in-person yields strong benefits to culture, innovation and ongoing career development. We feel the best approach is to blend the freedom and flexibility of WFH, with the personal interaction and collaboration found in Work-from-Office (WFO). Our development centers, located in Middle America communities, provide great hubs to enable this balanced approach. We also feel there continues to be strong business benefits to our software development center-based model, including: Access to strong overlooked talent, and keeping IT jobs in the U.S.Lower cost of livingHigh quality of living compared to larger metropolitan areasA strong catalyst for bringing the innovation economy to Middle America As we at Rural Sourcing take steps toward moving colleagues back to development centers, our priority will be to maintain: Employee safety, well-being and satisfaction, and opportunities for in-person connection, relationship building and team collaborationProductivity and performance for our clientsEmployee skills and career development, including best-practice sharingCompany culture – preserving the ‘glue’ for retention, consistent performance and market differentiationOur focus on being part of, and giving back to, the local communities in which we operate – helping to build the technology hubs of the future We’ve always been intentional about creating ‘collision points’ for our colleagues to interact and work together. Now, we are rethinking how to do this safely. By strengthening the bonds our colleagues form in the development centers and across locations, we will drive greater collaboration and deliver even better results for our clients. Office space and its design are important pieces of creating a collaborative environment. That’s why we’re rethinking how best to use the space to create the type of location that fosters creativity and teamwork, rather than building just a heads down work environment. This will include more teaming areas and better pair-programming setups. Teams will be able to complete heads down work-from-home for part of the week and come into the office for sprint planning/grooming, difficult project points and greater innovation discussions. As we speak with our colleagues it’s very apparent that they want to return to the development centers. They don't necessarily want to come back to a ‘weird pandemic environment’ but do wish for the positive aspects of our pre-COVID environment and the ability to socialize/collaborate in person. While we have all benefited from some aspects from WFH, we'll take the learnings from this unique time and build an environment that brings the best of both worlds together to the greatest outcome. DISCOVER MORE About the Author As COO for Rural Sourcing, Ingrid Miller Curtis is responsible for realizing Rural Sourcing's vision to provide US-based high quality IT outsourcing solutions through her management and oversight of all Rural Sourcing development centers. Her responsibilities include leading and developing Rural Sourcing talent, client relationship management, ensuring the scalability and reliability of Rural Sourcing's process and systems and strategically determining the next set of solutions for our clients. She is also responsible for establishing and ensuring consistency across the organization with respect to Rural Sourcing's processes, values, and methodologies. Ingrid brings an expansive knowledge of underlying computer systems and technologies, allowing her to contribute to all aspects of our application development and maintenance projects. Ingrid is a graduate of Babson College, where she earned a B.S. in Business Management.
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 5 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? 5 Cons of Offshoring 1. Time Zone Differences and Proximity One 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. Thinking about visiting your offshoring partner? This could be difficult considering the distance, costs, and time spent traveling to an overseas location. 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. 2. Communication and Language Issues When 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. 3. Cultural and Social Differences Even 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. SEE OUR VALUE COMPARED TO OFFSHORE 4. Geopolitical Unrest The 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. 5. Displacement of U.S. Jobs Critics 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 States Fortunately, 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 Partner If 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. Infrastructure The 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 Workforce In 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 Curve Remote 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.
Considering Nearshoring? Why Not “Here Shoring?”
Nearshoring has grown over recent years. While companies in India used to be the preferred choice for outsourcing as they offered the lowest cost alternative, many organizations have shifted their investments to near shore organizations to address time zone challenges. Nearshoring is a type of offshoring that occurs when an organization decides to outsource work to companies that are geographically nearer, such as a U.S.-based company working with a firm in Central or South America. Although nearshoring does have its advantages, onshoring (aka “here shoring”) allows you to keep your investment, your team, and your security right here in the U.S. Keep reading to understand the difference between these two outsourcing models, and discover why “here shoring” may be the right one for your company. Pros and Cons of Nearshoring By far, the biggest benefit of nearshoring is that the organizations are physically closer, reducing time zone discrepancies. Fewer time zone differences allow teams to make faster decisions to stay on schedule and reduce delays. However, while nearshoring solves most time zone barriers, it doesn’t tackle the most difficult challenges that operating in an international context – usually with developing countries – presents. Different countries will have varying national holidays, languages, cultural differences, and business practices that can prove to be a challenge to efficient communications. It’s also important to consider any new laws and regulations you’ll need to adhere to when working with a company in another country. Frankly, nearshoring is illusory in its ability to solve the tough problems of delivering high-quality software, cost effectively, at the required speed with an acceptable amount of risk. Onshoring: A Cost-effective Alternative to Nearshoring Although nearshoring allows two companies to be in more similar time zones, this doesn’t solve all problems with overseas outsourcing – just one of them. When you “here shore,” you cut down not only on time zone concerns, but also language and cultural barriers, as well as preserve the rules of U.S. law over IP and data security. You’ll also support jobs here in your own country, so you can feel good about the career opportunities your engagement will create. Besides that, wouldn’t you rather work with someone right here in the U.S.? Especially, if you can do it in a cost-effective way? Rural Sourcing: America’s Leader in Onshore “Here Shore” Software Development To help companies lower their costs and create high-quality software, Rural Sourcing’s innovative onshore model allows you to benefit from talented, qualified IT teams living right here in mid-sized and small cities across the United States. By “here shoring” with us, you’ll eliminate time zone challenges, language barriers, cultural differences, and get U.S. business/industry knowledge to speed up deadlines and improve collaboration. To find out how “here shoring” can benefit your organization, get in touch with our team today. NEED HELP? LET'S TALK.
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. [caption id="attachment_11219" align="aligncenter" width="600"] [/caption] 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.
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.
What is Domestic Outsourcing?
[embed]https://www.youtube.com/watch?v=yjwJqEESbkQ[/embed] Many people have the question, What is Onshore Outsourcing? Onshore outsourcing, also known as domestic outsourcing, is an increasingly popular business model that uses US-based companies for internal business support as opposed to sending them overseas. Simply, that is the onshore outsourcing definition. IT offshore outsourcing to India, South America, Central America, and Eastern Europe used to be the first choice when businesses were looking to save money. However, many businesses are now choosing to bring their IT, software development, and business intelligence back to the United States to improve speed, quality and convenience while still saving money over in-house or local contractor teams using the domestic sourcing model. Rural Sourcing is a proud leader of domestic outsourcing within the United States and provides solutions for application development, business intelligence and analytics, cloud solutions, enterprise applications, QA and testing. As a cost-effective and convenient alternative to offshore outsourcing, your company will benefit from increased efficiency and productivity. Discover the onshore outsourcing definition, learn about domestic outsourcing benefits, and see why Rural Sourcing is the country’s leader in domestic outsourcing. What Are The Benefits Of Domestic Outsourcing? Eliminating Offshore Outsourcing Headaches Many businesses look to external companies for business support but find that offshore outsourcing has a number of unique challenges such as time zone differences, language barriers, context and cultural misunderstandings – all which can cause delays, quality issues, and headaches. Fortunately, domestic outsourcing erases these roadblocks. You’ll benefit from real-time collaboration (as time zones are much closer) and access to a network of US-based professionals available to help ensure your project runs smoothly and you receive the product that meets all of the specifications. NEED HELP? LET’S TALK. Increasing Affordability of IT Projects One of the biggest advantages of domestic outsourcing is that it is the perfect balance between affordability and quality. This is especially true for software development and IT projects as those industries tend to cluster around major US metropolitan areas where prices for services are generally higher due to higher living costs and stiff competition for resources in those areas. This high cost is then passed onto your business in the form of higher project charges that can be a burden and above your available budget. But, that does not mean that your only option is sending the project overseas – not anymore. Instead of outsourcing projects to another country, you can get higher quality and more affordable services within the United States using one of Rural Sourcing’s development centers located in mid-sized cities across the country. For example, if your company is located in a big city, like San Francisco or New York, and needs help with Java application development or DevOps project, it can be very costly to hire a new internal team or outside partner locally. However, if you could have access to a team of the same expertise and quality in a smaller city in New Mexico or Georgia where living costs are more reasonable, the cost of the project would be lower and more affordable for the exact same end result – a great delivered product that is on time and works as expected. Domestic outsourcing is a cost-effective and convenient solution for businesses in need of extra assistance in highly targeted areas such as application and web development, instead of attempting to manage a team thousands of miles and many time zones away. If you need IT support, and want to keep it close to home, domestic outsourcing may be the right solution for your needs. Rural Sourcing: What We Do As the leader in domestic outsourcing in the USA, Rural Sourcing is an expert in Agile Development, Cloud, DevOps, Digital Engagement, and Salesforce Integration to businesses large and small nationwide. When you work with Rural Sourcing for domestic outsourced IT solutions, you’ll support American jobs and accomplish your business goals with enhanced quality, speed and ease when compared to offshore outsourced projects. We have a network of scalable IT solutions across our US development centers, who are focused on your unique business objectives, so you can eliminate bottlenecks and headaches and accomplish your IT goals with confidence. Contact Rural Sourcing to Learn More About our Domestic Outsourcing Capabilities We’re passionate about connecting companies with talented, qualified IT professionals in the United States. With an average of 10 years of development experience, each team member brings something unique to the job. If you’re interested in learning more about our domestic outsourcing capabilities, get in touch with us and tell us more about your project needs.
Partnering Enables Flexibility for Web Application Development
This fourth post in the Partnering with Intent™ series explains why most web application development organizations will partner to access the digital skills they need. Partnering offers IT organization an opportunity to tap into needed digital talent in a fluid, non-restrictive way. This flexibility is extremely important in the digital age when business initiatives and project priorities can shift endlessly. Partnering with Intent (PWI), a new approach to digital workforce creation, follows a business model proven with leading companies in a variety of market segments. PWI answers companies’ needs for the digital talent they don’t have, allowing them to take established products into new market segments, appeal to new groups of customers in a proven market and introduce new products and services. Businesses competing in the digital age require nimble IT organizations that partner to offer the rich, deep proficiencies needed to tap new opportunities with confidence. At its core, PWI allows companies, through their robust digitally prepared IT organizations, to enable innovation unhampered by technical limits. Access to the right digital talent at the right time, bypasses the need to recruit, retrain and manage current staff, gives IT departments the flexibility they need to respond to the shifting needs of the business with precision and speed. For example, when General Electric and Intel partnered to aggregate more than 6.8 million patient data points, they were able to provide healthcare leaders with the insights required to improve care delivery, reduce costs and motivate changes in behavior. READ THE WHITE PAPER In addition to supporting unbridled innovation, PWI delivers the digital talent needed to create human-centered experiences that solve user problems and push the business-user experience to a higher, more strategic relationship. When customers see a company as responsive to their needs, brand loyalty takes hold, making it difficult for competitors to lure satisfied customers away. A leading provider of streaming video devices and channels learned that lesson when it partnered with a consumer electronics manufacturer to build a simplified “smart TV” centered on the user device’s operating system. In this example, the device provider disrupted the “upstream” supply chain to simplify the user experience and create a partnered “win-win” for itself and the electronics manufacturer. Finally, IT leaders need to remember that concentrating on a select group of trusted partners is vitally important to nurturing high-value, high-reward relationships. To keep these business-critical relationships functioning at a high level, astute IT organizations regularly update their software development partners on corporate direction, short-term and long-range business initiatives, and pivoting priorities. Effectively applying PWI principles to these relationships dissolves boundaries and enables the two sides to operate as a blended composite team. IT organizations that use PWI’s operational transparency and open communication to unite previously siloed IT groups create the high-performance composite teams needed to pivot when the digital business environment demands it. NEED HELP? LET'S TALK.
Partnering with Intent – Flex culture powers collaboration
This third post in the Partnering with Intent™ (PWI) series explains how a new workforce model built on the idea of a flex (or flexible) culture, enables organizations to change course on the fly – as the hyper-digital environment demands. Flex culture, a new approach to workforce management specifically developed for IT organizations competing in the digital age, revolves around an all-encompassing transparency that pervades IT leadership. By communicating freely and openly, not only about the organization’s shared purpose and approach to intentional partnering, IT leaders can assuage the fears of internal staff who worry about job security, while motivating externally provided talent to function tightly within an integrated team environment. This tight alignment across all types of IT talent enables the organization to manage through an almost constant onslaught of change – efficiently and effectively. READ THE FULL WHITE PAPER Painfully aware that they cannot now nor will they ever be able to afford the breadth of talent they need, IT leaders who take five pivotal steps to manage their workforces in times of hyper-change can build the skilled teams they need without breaking the budget: Delineate technology skills sets as either “core” to the business or “non-core.” This distinction gives IT leaders a clear view of the digital talent they are seeking when they begin working with a trusted third party to augment internal staff. Communicate to staff the “big picture” of the technology landscape and how they fit into it, openly sharing, as soon as known, emerging new priorities. Keep remarks focused on how they can prepare for and support coming changes personally and professionally.Form mult-disciplinary teams of IT talent that pair historical knowledge with digital expertise, teaching technologists to understand the customer experience and how the solutions they build and rollout advance the customers’ business goals.Screen internal and external IT candidates for critically needed “soft skills” and “culture fit” needed to navigate the IT organization nimbly and efficiently.Remember to extend digital learning opportunities to internal staff in an effort to keep their skill sets relevant and marketable. At its heart, flex culture rewards full-on collaboration between and among multi-disciplinary teams. When multi-disciplinary teams with a diversity of talent operate in lockstep, creativity and innovation abound, fast-tracking engagement, performance and, ultimately, loyalty to the organization. In the next PWI blog post, we will explore why a flex culture matters so much – not just to employees but to the credibility of IT leadership as well. NEED HELP? LET'S TALK.
Partnering with Intent – The Importance of Cultural Alignment
To advance the latest thinking about workforce management in the digital age, Rural Sourcing authored a breakthrough white paper entitled “Partnering with Intent: A new approach to dealing with the shortage of tech talent.” READ THE FULL WHITE PAPER This second post explains how cultural alignment serves as a foundational element of the Partnering with Intent™ (PWI) approach. While alignment of core values and purpose starts with employees, electing to partner with companies that share this vision sets the stage for success. This same approach can also be applied to customer relationships, which builds company’s revenues and reduce customer churn. As IT leaders acknowledge that a lack of digital talent is the number one obstacle to achieving their business objectives, the role of augmented talent takes on a new criticality. However, many IT executives find when they go to market looking for digital technology assistance that the needed talent is out of reach financially. Ideally, the companies that provide digital talent go beyond looking at current projects and priorities. Partners who stand out from the crowd go the extra mile to proactively learn their customers’ mission, values and cultures. The third part tech providers screen their talent for fit as well as function. This proactive approach can help assure that external talent not only performs as needed but fits into the organization seamlessly. For example, digital talent that “fits” not only understands the company’s mission, they are empowered to contribute to pivotal discussions and share their expertise freely with all levels of the client’s IT organization. However, cultural integration requires time and commitment on both sides of the partnership. One of the first steps to building this partnership-based culture is to recognize that whether the culture has been built intentionally or not, it already exists. Sometimes, it’s an LCD culture (Least Common Denominator), which forms based on the two partners’ attitude, actions and language. These haphazard relationships break easily because they are fragile and, at times, accidental. In most cases, LCD cultures leverage the interests of the dominant partner, often at the expense of the second partner resulting in suboptimal outcomes. Intentional Partnerships, such as those advocated in the PWI model, require that both partners make a daily commitment to ensuring that everyone at the table shares the organization’s values and mission – even as these essential elements change and evolve. In this environment, true partnership becomes part of each IT team’s DNA. Remember that PWI can be applied to more than your relationship with your external digital talent resources. Extend that approach to your customers and you’ll likely see more long-term relationships with them as well as a healthier contract renewal rate. One company that continually focuses on cultural alignment with its customers boasts of an average customer relationship of 17 years and a 100% renewal rate at the end of the first contractual period. If you had those kinds of intentionally built and maintained customer relationships, what would that do to your ability to deliver technology to the business and ultimately your bottom line? In our next post in the Partnering with Intent series, we will explore how a flex culture, the next step of cultural alignment, unifies a workforce made up of in-house and contingent resources. NEED HELP? LET'S TALK.