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America – the outsourcing destination

We’ve said it before, we realise – but among the many countries looking to become major outsourcing destinations, the US is becoming increasingly important. No, not just as a market (although it’s certainly that) but as a destination in its own right.

For the latest piece of evidence we cite this article on ZDNet, which points to companies including Nexient, Rural Sourcing and Catalyte, all of which are American outsourcing companies working in California, Atlanta and Baltimore respectively.

The reason they’re starting to do well is easily answered if you happen to know any element of basic maths; as places like India, Poland and the Philippines become more affluent, their wages go up and therefore the costs to anyone setting up an operation there increase. They haven’t yet reached parity with America on pure cost grounds but when time zone, local expertise and IT support you can go and shout at in person when it goes wrong are taken into account, the home-grown alternative becomes more appealing.

This should please neutral businesspeople who can see the market at work and protectionists such as the current president who’d rather see people sourcing from home anyway; the companies involved will need to be aware of the forthcoming impact of robotic process automation, which is going to cause them quite a hit as software robots become even cheaper than their employees.

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