“Domestic Repositioning” Experts at Ruralogic Comment on Wall Street Journal Article Concerning the Rural Workforce

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Ruralogic, a nationally recognized provider of domestic technology and business process outsourcing talent, recognizes the strengths and importance of the American “Rural” workforce. These capabilities are enabling Ruralogic’s "Domestic Repositioning" practice to save companies substantial labor cost while bringing much needed jobs to American rural communities.

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Rural workers tend to be more stable, motivated and loyal.

On-shoring and repositioning domestic technology and delivery centers are relatively new trends but are gaining significant interest as a more effective solution than international outsourcing. The convergence of new economic, cultural and human factors is driving the corporate momentum for operational and delivery centers positioned in non-traditional areas. Large financial services companies and information technology software and service firms are leading the way, with other industries beginning to take notice.

Migrating from high cost metropolitan centers to new technology centers in lower cost regions has great momentum. Ruralogic’s clients have taken advantage of this opportunity to rationalize existing delivery methods, incorporate new technologies, lower people costs, and provide the “clean sheet of paper” opportunity that information technology groups covet.

By building its own workforce based in low-cost areas of the United States, and working in partnership with local colleges and technical training institutions to develop effective employees, Ruralogic created a repeatable workforce development process. The company’s expertise and methodology is now available to assist other technology organizations that desire to build a lower-cost but effective workforce of their own. Ruralogic, through its own experience and the work they have performed for their clients, can assist clients in evaluating the alternatives.

These lower cost geographic regions frequently include rural areas or are located within commuting access of rural populations. As reported in the November 12, 2013 article, “Rural Residents Dragging on Confidence,” found in Real Time Economics from The Wall Street Journal, rural populations typically have fewer job options and feel less connected with the volatility of the economic drivers of the United States economy than their city counterparts.

As a result, rural workers tend to be more stable, motivated and loyal, in addition to being less expensive workers – great benefits for companies embracing the Domestic Repositioning strategy.

According to David Snyder, Chairman of Ruralogic, “In working with clients who have interest in “Domestic Repositioning,” Ruralogic is typically engaged to identify a number of locations that meet labor cost and capacity objectives. We understand that these locations must have appropriate foundational attributes to achieve a balanced “build” and “buy” workforce. We have developed a methodology that facilitates the evaluation and screening process.”

Ruralogic’s process filters data through a set of criteria established with their client to arrive at a short-list of locations. The result is a comparative analysis of key attributes across locations, enabling an objective review and discussion that typically identifies three markets for further evaluation, including due diligence and incentive negotiations. Snyder also noted, “In choosing the candidate cities, we incorporate both quantitative data from various sources and qualitative factors requiring judgment to arrive at specific conclusions. We believe, in most cases, that the “soft” factors differentiate a city or region as a finalist.”

Including community colleges, technical schools and universities in an integrated technology workforce strategy has become a critical component of the “Domestic Repositioning” evaluation and is more important today than in years past. Ruralogic immediately ascertains the educational institutions’ capabilities within each region to support both the acquisition of existing talent and the development of new talent to support the workforce requirements of the new technology centers.

Ruralogic was created in 2010 to offer a low-cost but highly effective alternative to international outsourcing. As a pioneer in establishing this alternative, Ruralogic built a template for working in partnership with educational institutions, governmental agencies, community development agencies and private enterprises. The resulting methodology is the basis for the “Domestic Repositioning” practice that Ruralogic has launched to assist clients who wish to establish low-cost resource centers for their own benefit. This ability to reposition their domestic resources, and repatriate previously out-sourced jobs to domestic locations with lower costs and strong workforce development partners, is an attractive alternative. Ruralogic provides career opportunities in small communities to revitalize local economies. More information is available at http://www.ruralogic.com.

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David Snyder, Chairman
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