Outsource to Rural America, Not South America

MINNESOTA (PRWEB) April 22, 2004 -

– Forrester Research, with locations on both coasts of the United States and around the world, predicts that American employers will move $3.3 million jobs and $136 billion in wages overseas in the next 15 years. Since outsourcing took off in the early 1990s, at least five states have introduced legislation to block companies from sending employees and their earnings to countries like India and Mexico.

However, this expected trend may be changing. Recently, Dell Computers announced it was closing some of its Indian operations and moving jobs back to the U.S. Though fear of political backlash might be a factor for companies, there are other hidden obstacles worth considering:

v Language barriers can make contracts extremely difficult to write and interpret.

v Pricing differences require extra time and/or personnel.

v Maintaining confidentiality is more challenging.

v Intellectual property conflicts can arise.

v The political stability of the host country can influence business in terms of security and profit.

v Relationship managers and customs professionals are often hired to handle moves and transitions.

In short, if businesses believe they are helping their bottom line by going outside the U.S., they may be misinformed. It is worth the time and energy to take a look at developments within our own country, not only in large cities, but in smaller rural communities where economic development has become a priority.

One such example exists in South Central Minnesota, where the City of Sleepy Eye, along with their area foundation and some committees, is working to rebuild Main Street. Large buildings are being redeveloped to house expanding and incubating business and storefronts are being updated to welcome new business to the community. The costs of rental space and labor in a city like Sleepy Eye would challenge those quoted by Indian or Mexican sources and can be provided without the inherent hassle of outsourcing.

The Berg Committee is a 501(c)(3) group operating in collaboration with the Sleepy Eye Area Foundation to improve economic conditions and enhance the quality of life in the Sleepy Eye area. The committee headquarters can be reached at (507) 794-7940 or contact EDA Director Rob Anderson at (507) 794-5636.