Thread: Career Watch: The Scoop on Rural Outsourcing

October 22, 2007 (Computerworld) --

Q&A: Nadav Sela
The COO at Genesis Networks Solutions Inc. discusses rural onshore outsourcing.

What are the advantages of rural onshore outsourcing? First, there’s the low cost associated with a lower cost of living. There is sometimes a misconception that the best IT talent can only be found overseas or in larger metropolitan areas of the U.S. But a very talented pool of individuals has given up on the hectic pace of the big city. These workers are often in the same time zone as the companies that contract with them, and there are no language or cultural barriers.


How do the costs of in-house and offshore development compare? Considering the low rates and elimination of overhead (office space, equipment, maintenance, HR), the savings over in-house could be 40% to 50%.


Nadav SelaThe raw hourly rates are about twice as high as offshore. However, there are savings related to management, efficiency, travel, communication and attrition. The high rate of attrition in offshore ventures is a big hidden expense.


Are U.S. companies showing a willingness to consider this approach? Definitely. They are not abandoning offshoring altogether in favor of rural sourcing. But they are finding that some activities, especially ones that require more interaction with clients and a high volume of communication with their metropolitan U.S. centers, are better handled utilizing rural sourcing.


Which element of your pitch do companies most respond to? Cost is a main factor, but management and control are very important. The time zone and geographical proximity combined with lack of language and cultural barriers make management and control both easier and less expensive when compared to offshore ventures.

Political support and showing good corporate citizenship are also important. This becomes a significant contributing factor, especially when dealing with Fortune 100 companies.
--Jamie Eckle

http://www.computerworld.com/action/art ... rc=kc_feat

Are U.S. companies showing a willingness to consider this approach? Definitely. They are not abandoning offshoring altogether in favor of rural sourcing. But they are finding that some activities, especially ones that require more interaction with clients and a high volume of communication with their metropolitan U.S. centers, are better handled utilizing rural sourcing.

I would say it's more Americans are tired of calling Bangledesh and talking to APU in order to have their computers fixed. I am very computer literate and on ocassion I've had to do this as my company outsourded practically their entire software programming and IT divisions through India.
It's a complete joke. Usually the first person I get, I can hardly understand. In addition, they are reading from their "troubleshooting flow chart". I always ask to talk to someone who know what they are doing because I've done all the troubleshooting flow chart steps.
Usually about two hours later, one of our 2 in house American IT Techs comes over and has it fixed within minutes.
So the business lost 2.5 hours in a process that could have taken 10-15 minutes if they had more of an IT presence on sight.
But of course, mr CEO wouldn't be able to enjoy his $43 million annual salary if we ACTUALLY PAID AMERICAN IT PROFESSIONALS TO TAKE CARE OF THESE ISSUES.
Alas, we are forced to rely on third world sub-standard IT training.

I was late paying my JCPenney bill and I got a call reminding me that my payment was late. I could hardly understand the idiot who called and I asked him where he was calling from...India. I was so angry that
a third world country was calling my house and had much of my personal info (phone number, address, and who knows what else! etc.) I yelled at the guy (He told me his name was Roger..yeah right) and told him that I do not do business with or speak with jerks who steal American jobs and I hung up on him. I paid off the $120.00 I owed Penneys and canceled the account.

Indian Statistics on Income, Wages, Labor Force
average per capita income (GNI): 470 US Dollar (2003)
- average per capita income in Bihar: 4,616 Rupees (approx 80 Euro)
- official minimum wage in Jammu & Kashmir state: 1,800 Rs per month (or
60 Rupees per day, equiv to 1.2 Euro per day) for simple labourer
- official minimum wage in Himachal Pradesh: 65 Rupees per day (simple labourer)
- population living on less than 2 USD per day: 41.4 percent [v2020; Apr 2003]
- average monthly wage: 179 USD [GTF; 2005]
- India's working age population (15-60 years): 610 million (estimate 2003)
- growth of India's labour force: 1.9 % per year [BBC Jul 04]
- growth of job creation between 1994-2000: 1.07 % per annum
- estimate of wage increase over the next four decades: 800 % (estimate by IMF)
[BBC Jul 04]
- number of cabin crew working for Air India: 1,600 [BBC, Jan 2006]
- salary of senior Air Hostess in India: up to 75,000 Rs per month [BBC, Jan 2006]
- percentage of Air India's cabin crew being overweight or obese: 20 % [BBC, Jan 06]
- expected increase of passengers in the Indian aviation market: approx 45 million
over next 5 years [BBC, Jan 2006]
- monthly salary of 5 year old Police Officer in Chattisgarh: 2,500 Rs (the boy took
over the job from his father when he died, responsible for filing and bringing tea)
[BBC, Sep 2005]
- number of children working in Tamil Nadu districts of Kanchipuram and
Thiruvanamalai in silk industry: 10,000 estimate [BBC; Aug 2005]
- Indian child labourers: between 10.25 % to 19.90 % of all Indian children aged 9-15
[BBC; Aug 2005]

http://www.neoncarrot.co.uk/h_aboutindi ... html#wages

Once my mortage company called to harrang me about a payment I'd already made. It was an autodialer from India, of course. When I said, no, the payment was made, he apologized - he could see my check, the account number and bank!

This is outrageous. All of the trouble we are having with identity theft and our private info is being given to third world countries.

That's bad enough. When Orange County Courts send and contract to give your information to Mexico for data entry when you have a traffic ticket our any thing else. That really gets me when we know how many ID's are stolen and SS#'s stolen.

Thankyou for your comments. I understand that it bothered you.. but I still could not get what is the mistake of the fellow who called from India and the need for you to yell at him ? I can understand if you want to yell at the company which outsourced to India but i could not get this.

Originally Posted by leesahly

I was late paying my JCPenney bill and I got a call reminding me that my payment was late. I could hardly understand the idiot who called and I asked him where he was calling from...India. I was so angry that
a third world country was calling my house and had much of my personal info (phone number, address, and who knows what else! etc.) I yelled at the guy (He told me his name was Roger..yeah right) and told him that I do not do business with or speak with jerks who steal American jobs and I hung up on him. I paid off the $120.00 I owed Penneys and canceled the account.
Indian Statistics on Income, Wages, Labor Force
average per capita income (GNI): 470 US Dollar (2003)
- average per capita income in Bihar: 4,616 Rupees (approx 80 Euro)
- official minimum wage in Jammu & Kashmir state: 1,800 Rs per month (or
60 Rupees per day, equiv to 1.2 Euro per day) for simple labourer
- official minimum wage in Himachal Pradesh: 65 Rupees per day (simple labourer)
- population living on less than 2 USD per day: 41.4 percent [v2020; Apr 2003]
- average monthly wage: 179 USD [GTF; 2005]
- India's working age population (15-60 years): 610 million (estimate 2003)
- growth of India's labour force: 1.9 % per year [BBC Jul 04]
- growth of job creation between 1994-2000: 1.07 % per annum
- estimate of wage increase over the next four decades: 800 % (estimate by IMF)
[BBC Jul 04]
- number of cabin crew working for Air India: 1,600 [BBC, Jan 2006]
- salary of senior Air Hostess in India: up to 75,000 Rs per month [BBC, Jan 2006]
- percentage of Air India's cabin crew being overweight or obese: 20 % [BBC, Jan 06]
- expected increase of passengers in the Indian aviation market: approx 45 million
over next 5 years [BBC, Jan 2006]
- monthly salary of 5 year old Police Officer in Chattisgarh: 2,500 Rs (the boy took
over the job from his father when he died, responsible for filing and bringing tea)
[BBC, Sep 2005]
- number of children working in Tamil Nadu districts of Kanchipuram and
Thiruvanamalai in silk industry: 10,000 estimate [BBC; Aug 2005]
- Indian child labourers: between 10.25 % to 19.90 % of all Indian children aged 9-15
[BBC; Aug 2005]

http://www.neoncarrot.co.uk/h_aboutindi ... html#wages

It's called frustration - and if he is representing the company - then you are yelling at a company representative.

I have just a sneaking suspicion that some of the identity theft and some of the scams are coming as a result of this oursourcing and foreigners, who are not bound by our laws, using this information.

My friend Leesahly

All I can say .. In the globalized world country ,Race, Culture does not bar anybody to compete with anybody else, even If we want otherway. Offshoring Or H1-b is small part of the big game happening around without our volition. People who realised are trying to adjust to the new reality. People who are distressed to accept the change are distressed more.

I did not wonder when this article was most emailed of todays NYTimes

http://www.nytimes.com/2007/10/31/busin ... ei=5087%0A

You can try every bit to stop what is happenning around and you can do it in a constructive way.

But at the end of the day all we have is our life to deal with our own skills.
Ever heard the following slogan ??

When the Game gets tough , The Tough Get the Game

http://www.uperform.com/articles/gametime.htm

I am not saying this to condescend .. but just putting my thoughts..

I am sick and tired of being connected to people who have such a THICK ACCENT THAT I CAN'T UNDERSTAND WHAT THE HELL THEY ARE SAYING! I don't mean to sound cruel when I say that, but its just plain fact.
I also do not want my private information (whats left of it), being sent to India, China, and other foreign places. If American companies want my business, give me American representatives in the USA.