Homeshoring: Tech jobs in mid-size America

Homeshoring: Tech jobs in mid-size America

Summary: News.com's Ed Frauenheim reports that Bangalore, Shanghai and Singapore--as well as Silicon Valley--have new competition from smaller cities and rural areas of the United States...

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TOPICS: Hardware
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News.com's Ed Frauenheim reports that Bangalore, Shanghai and Singapore--as well as Silicon Valley--have new competition from smaller cities and rural areas of the United States...

A chief reason technology companies are turning to midsize cities and rural areas in the United States is their lower-wage work force. Employees there can be paid less than in today's tech hubs, largely because the cost of living is much lower. For instance, a $400,000 home in Boston would cost about $69,000 in Oklahoma City, according to Coldwell Banker Real Estate. The cost of living in Twin Falls is 33 percent lower than in San Jose, Calif.--the heart of Silicon Valley.

Rural Sourcing claims that it can offer services such as application maintenance and Internet development for roughly 40 percent less than what other domestic technology outsourcers charge. Its fees are about the same as the overall cost of using an Indian outsourcer, according to White, if you consider factors such as communication costs, travel expenses and inconvenience.

Maybe CNN's

Topic: Hardware

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8 comments
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  • Who's CNN?

    Oh yeah, CNN. Do they still exist any more?
    george_ou
  • Sounds Good but...

    This sounds reasonable, but maybe someone should notify Dell, IBM, and HP.
    richman555
  • Real IT Work?????

    I am an old dinasaur Mainframe programmer with some PC configuration and troubleshooting experience. I can't wait to go back to work.

    When do I start?

    JJ
    wolfmanjack_z
    • You can start

      When you upgrade youre skills. Offshoring sucks, but nothing sucks worse than jerks who don't want to keep their skills up and bitch about not being able to get a job....
      kribor_z
  • Tech jobs in the US and outsourcing

    Outsourcing is becoming a threat to our National Security as is moving our factories overseas. Isn't the lack of factories and the means of production the real reason why the South lost the Civil War?!? Question: Do they teach History in schools any longer? Do they educate people in schools any longer or do they just train them for a skill that becomes obsolete within 5 years????
    lblasiot@...
    • Oh they do, but they also teach...

      ...other things. Like money is everything and people are nothing. Show me the money, follow the money. If the money changes country, follow it!

      Shame.
      Zen37
  • i agree this is good but there are catches

    i think that it is wonderful that companies are not our sourcing to inda so they can pay them 2 bucks a day but by the same token are they offering the comming blue collar worker in the rural US much better maybe 7 bucks an hour no one can live anywhere in the US for these kinds of wages i live in a rual area where housing is average a nice house you could by for 70,000 to 100,000 of course a better house would be 150,000 plus anyway after 6 years and a technical college degree i finally make a decent salary buy i still am just getting by
    liskanich
    • re: Catches...

      [b]i think that it is wonderful that companies are not our sourcing to inda so they can pay them 2 bucks a day but by the same token are they offering the comming blue collar worker in the rural US much better maybe 7 bucks an hour no one can live anywhere in the US for these kinds of wages i live in a rual area where housing is average a nice house you could by for 70,000 to 100,000 of course a better house would be 150,000 plus anyway after 6 years and a technical college degree i finally make a decent salary buy i still am just getting by.[/b]

      Consider that there are jobs out there that while it would be technically cheaper to export the job to India, it's actually cheaper in terms of collateral damage to keep the job in the USA.

      Consider that which bit Dell in the arse in the last couple of years. Dell sent their tech support department to India - that did not go over well. People HATED having to talk to someone who could barely understand their issue, let alone give them solutions quickly and without tearing 1/2 of their hair out. Many of the folks in India, while they may be technically competent, can't speak English worth a hill of beans and [b]QUICKLY[/b] understand what the client's problems are let alone give the guy instructions that can be understood.

      After spending 1/2 a DAY on the phone with a tech support center somewhere in India, I can vouch for the sheer frustration involved.

      Tech support is a numbers game. The quicker you get the problem resolved, the happier the customer is, and the quicker you are to getting to your next call. The next guy is happy too - since he didn't have to sit on hold for an extra 1/2 hour.

      Many support centers operate on a quota basis. They expect techs to solve X calls/issues per shift. When you have a tech (from India) who speaks a little english (probably as his 3rd or 4th language), and the customer has to repeat him/herself 15 times to get the problem across, the numbers drop. Instead of say, 30-40 calls per day, you get 10 or 15.

      That, is the REAL reason Dell pulled their tech suppport department back from India.

      And THAT is also why Homeshoring makes sense. Everyone wins. The company doesn't look like the spawn of the devil himself for putting Americans out of work, the city that gets the jobs wins, the people hired win, the customers win. Heck, even the government is happy - they have more tax revenues coming in.
      Wolfie2K3