Thursday, October 28, 2010
Rural Outsourcing
These days we all hear about the largest companies in the US consistently outsourcing throughout the world. Throughout the past, much of the smaller companies tend to outsource to smaller less populated US areas. They also tend to outsource worldwide, but to much less metropolitan like areas. By doing so, they are able to reduce the overall cost of their respected projects by about 30%. Recently, some much larger companies have started or thought about beginning the process to outsource to rural areas around the united states and to less dense areas of India. A company from Canada, CGI, is looking to outsource 20% of its total outsourcing projects to areas of less than 50,000 people. CGI is the company who has helped this rural area outsourcing trend along. They currently employ over 31,000 employees, far from a start up company. Along with the cost reduction of the rural outsourcing, this may also increase the support from local citizens.
Subscribe to:
Post Comments (Atom)
I am not really familiar with rural outsourcing so this post is interesting. I am not sure I entirely understand it, however I like the idea of keeping outsourcing in the country as opposed to always outsourcing out of the country.
ReplyDeleteI agree with Mallary. Outsourcing is obviously a great way for companies to capitalize not only on their own core competencies, but also on the core competencies of the companies they outsource to. If more rural areas are increasing their specializations, then I say more power to them. They have recognized a demand for outsourcing inside the country.
ReplyDeleteI'll have to look more into this. It's very interesting...