Why Rural Sourcing is the Next Starbucks
True confession, I’m a Starbucks coffee fan. Each day starts with a triple grande nonfat cappuccino. I’m also a big Howard Schultz fan; I even have an autographed copy of his book: Onward. More importantly, I respect his social and civic activism as well as admire his vision of creating a 3rd place to have a coffee experience. Whether you like the Starbucks brand or one of the tens of thousands of other coffee options in America it was Schultz’s vision of creating a third place that began this lovefest with the consumption of coffee somewhere other than your home (#1) or your office (#2). This vision created a new alternative at a scale that didn’t previously exist.
The Rural Sourcing business model follows the same concept and vision. 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, language, and time zone challenges. At Rural Sourcing we saw the need to create that third option at scale.
Onshore domestic technology talent is abundant in smaller cities such as Albuquerque, NM; Pensacola, FL; Augusta, GA; or Mobile Alabama. 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 IT 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-environment where software developers and quality engineers can focus on creating applications to support our client’s 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 an Atlanta. Also, when measured against offshore, domestic sourcing is more cost-effective when evaluated by the total cost of ownership or TCO of completing a successful project in today’s agile software development world.
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. For certain types of projects, these sourcing models may be well suited for the task. What I am saying is that there is a new coffee shop available that serves an amazing third alternative that may just taste better than your traditional sources. Find out more about our blend of services here.