Rural outsourcing positions itself as a financially viable option for small businesses

Small businesses looking to find outside talent at an affordable price may no longer have to look abroad. The growing phenomenon of “rural outsourcing” may in fact offer more benefits than outsourcing overseas.

Over the past few years, many businesses have outsourced areas such as IT to companies overseas.
BusinessWeek reports that outsourcing to rural American tech companies is a financially viable alternative. The prices of American companies range from 10 to 150 percent higher than their counterparts abroad, but there are additional costs involved with going overseas.

Although workers abroad may require smaller wages, the total cost of ownership increases when factoring in the effect of language barriers, transportation, limited knowledge of American business practices and the time-zone difference.

BDO Seidman, an accounting and consulting firm, conducted a survey which showed that 22 percent of CFO’s were most likely to outsource within the U.S. last year, as opposed to 16 percent who considered China and 13 percent who chose India.

Business owners who cannot afford to hire IT staff can now benefit from domestic outsourcing options such as Rural Sourcing, which employs workers in Jonesboro, Arkansas or Cayuse Technologies owned by the Confederated Tribes of the Umatilla Indian Reservation in Oregon.

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