Government Technology - March 2008 - (Page DC22)

Economic Development Made in the USA As rural broadband infrastructure matures, IT outsourcing to rural America is more attractive to domestic ﬁrms. BY INDRAJIT BASU | CONTRIBUTING WRITER HEN THINKING ABOUT outsourcing IT-related jobs, the ﬁ rst destination that probably comes to mind is India. Perhaps China is next, followed by the Philippines, and then a few eastern European countries such as Russia. But the United States? Hardly ever. Mention IT outsourcing to Kathy White, however, and the founder and president of Rural Sourcing Inc., a Durham, N.C.-based IT consulting services ﬁ rm says, “Why not America?” She has even coined a term for it — “domestic sourcing.” White believes that by paying a little more, IT work can be done competitively in the United States (instead of sending it W far away to India and China). In fact, her conviction is so strong, she gave up her CIO job at health-care conglomerate Cardinal Health to pump $2 million of her savings into starting Rural Sourcing. Three years after its inception, Rural Sourcing has established itself as a company with “a reputation for providing high-quality IT services and skills to local, national and international companies.” White is a feisty American entrepreneur who thinks outside the box. Lately a clutch of U.S.-based IT services ﬁ rms have been competing for outsourced software projects, pitching the merit of low-cost U.S. cities against favorite offshore destinations such as India and China. These companies include local ventures such as Rural Sourcing, Cayuse Technologies and Northrop Grumman, among others, as well as global names like Google, BearingPoint and Perot Systems — industry titans that have already set up large operations in India. “Domestic sourcing offers the best of both worlds,” White said, “and by hiring and training skilled IT professionals, domestic sourcing can be an alternative to offshore outsourcing.” What’s interesting is that both American providers and offshore competitors are pitching costs as one of the primary drivers — albeit with a different twist. Some companies are setting up facilities 22 DIGITAL COMMUNITIES MARCH 08

Table of Contents Feed for the Digital Edition of Government Technology - March 2008

Government Technology - March 2008 Contents Point of View Big Picture The Last Mile On the Scene Four Questions for... Top 25 Doers, Dreamers and Drivers Let's [Not] Get Physical No Data Left Behind Conservation King Community Drug Test Reinventing the System Better Late Than Never Closing the Deal Spectrum Products Personal Computing signal:noise Digital Communities The Expanding Focus of Digital Communities The Digital Imperative Hot Fusion Redefining Municipal Wireless Made in the USA Bridge Detectives The 2008 Agenda

Government Technology - March 2008

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