Rural China Sourcing in 2011
Rural sourcing, also known as domestic sourcing, is essentially a cost-effective option to offshoring. The Obama administration, which held firm views on job allocation via outsourcing to countries like India and China, has encouraged rural sourcing strategies. As a result, many smaller firms in the U.S. are using onsite professional services from teams located in rural areas across the states. Rural sourcing was seen as a solution for recessionary times. With lower operational costs and a comparatively lower cost of living in rural areas of the U.S., cross-sourcing models or rural sourcing were utilized by many firms because of obvious advantages like lower costs than traditional labor markets in the U.S. and low risk compared to the offshore model of operating. These advantages meant that firms could enjoy the benefits of closer proximity, cheaper travel to work sites and no more multiple time zones. With such gains at hand, it’s no wonder that leading research firm Gartner saw rural sourcing as the model that “offers cost, marketing, language and cultural benefits, making it an attractive alternative to offshore and other onshore models for some organizations.”
2011: The Year of Rural China Sourcing?
Encouraged by the Obama administration and politicians in almost every state across the U.S., will rural sourcing be the panacea to solving the unemployment predicament in America in 2011? Probably not, but this model will definitely see widespread acceptance among firms who were wary to experiment with it. Along with this development, there will also be a few lessons learned from mistakes that have been made in this fairly new industry. Here are a few tips that could prove valuable for those who want to try rural sourcing:
Firstly, firms who want to engage in this model need to ensure that they employ the right type of people who are armed with the appropriate skill sets.
Always check for references if possible from enterprises who are functioning in the same industry.
Things can go wrong at the last minute, and rural sourcing is no different. Therefore industry experts are of the opinion that enterprises must conduct test runs to ensure a smooth product development process.
So what if it’s a rural area set in the state of Arkansas, enterprises should understand the dynamics of the place where their core product development sites will be situated. Enterprises can benefit from multiple visits to the site areas to build stronger relationships with their teams and the professionals.
Even though 2011 may not be poised to be the breakthrough year for rural sourcing, it will definitely see a massive improvement in honing the skills of our domestic IT workforce. Additionally, 2011 will perhaps be the year when America will wholeheartedly encourage domestic outsourcing models like rural sourcing to exorcise the ghosts of unemployment.
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