Onshoring with Rural Sourcing – Good for Budgets, Good for the Economy
As the tech industry booms, the demand for developers, IT staff and tech professionals has skyrocketed. For decades, businesses tried to lower costs by offshoring their technology needs to other countries. However, they have realized the unique challenges of offshoring such as time zone difference, language barriers, and cultural misunderstandings. These annoyances can cause 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 to not offshore and instead look for a better alternative.
Rural Sourcing understood these challenges and developed another choice that not only helped companies achieve their IT goals, but also helped local economies capitalize on and retain their best tech talent.
Rural Sourcing: Onshoring 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 metros 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 also does it in a way that supports small to mid-size local economies and creates opportunities for tech professionals who call them 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, Georgia, Oklahoma, and New Mexico where the cost of living is less expensive and there is 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 such as 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 hundreds of jobs are created that can have an enormously positive ripple effect on local economies. It is a win-win-win for tech professionals, companies, and the cities where our development centers are located.
Measuring the Economic Impact of Rural Sourcing Inc. on Communities
To find the true economic impact of Rural Sourcing in Augusta, we reached out to the James M. Hull College of Business at Augusta University. The team at Georgia Regents University measured the economic impact of Rural Sourcing Inc. by using an input-output model using 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 about how much our development centers helped boost the economies where they are located.
As a result, the team was able to provide a comprehensive assessment of the local economic impact of Rural Sourcing Inc., 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 Inc.’s Positive Economic Impact
The impact of Rural Sourcing Inc. on the local community is far more than just the number of jobs created. As the number of jobs increase in a local community, people have more disposable income to spend, which trickles into the economy and supports local businesses. When it comes to measuring Rural Sourcing Inc.’s total economic impact in just one community, the results are astounding.
The study found that Rural Sourcing Inc. 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 five-development center across the United States, Rural Sourcing Inc. is responsible for contributing $100 to $150 million annually to the surrounding local communities. Typically RSI agrees to ten year commitments for job creation so extrapolating today’s level of investment in these communities across the ten year commitment means that RSI has a $1.0 to $1.5 billion impact on our selected communities.
Our Commitment to Bring Jobs Back to the United States
Rural Sourcing is taking huge steps to support the American dream and smaller regions that could have the opportunity to compete nationally for tech talent – but only need the opportunity. While other conglomerates have favored larger metro areas, Rural Sourcing has fostered innovation and growth in small cities across the United States. We are directly and indirectly stimulating job growth in America helping local economies grow by more than $100m.
As the leader in onshore 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. Our strategically placed development centers are supporting productivity, which is infiltrating into the local communities. We’re incredibly proud of the impact we’ve made on areas like Mobile, AL, Jonesboro, AR, Augusta, GA, Oklahoma City, OK and Albuquerque, NM, and we look forward to expanding our efforts more in the future.
If you’re interested in learning more about our capabilities and how we may be able to make a difference in your business, get in touch with us today.