From Vicious Spiral To Virtuous Cycle[1]

The 2010 Outsourcing World Summit®
Disney’s Yacht & Beach Club Convention Center● Lake Buena Vista, Florida
February 15-17, 2010

“From Vicious Spiral to Virtuous Cycle”
p y
Can Outsourcing Be the Answer to Rural America’s Brain Drain ?
Monty P. Hamilton, CEO, Rural Sourcing, Inc.

www.IAOP.org

The 2009
Monty Hamilton
Outsourcing World Summit®

Monty P. Hamilton
CEO Rural Sourcing, Inc.

Monty Hamilton, CEO of Rural Sourcing, Inc. is a consulting
industry veteran with more than 20 years experience working
with strategic clients in the consumer products and life
sciences industries He began his career with Accenture and
industries.
then helped grow Clarkston Consulting into a 300+ person IT
consulting organization.

As CEO of Rural Sourcing, Inc. he is responsible for leading
the strategic direction and the growth of RSI to launch 30 new
high-tech hubs across the US.

Copyright © 2010 IAOP. All Rights Reserved.

Who We Are
Rural Sourcing Inc.

• Founded in 2004
• Wholly owned subsidiary of Clarkston Consulting

Business Objective

• Provide alternative Onshore source for cost-effective IT
talent offering:
• Ease of communications
• Ease of collaboration
• Distance compatibility & responsiveness
• No risk of business disruption
• Focus on application development and applications
management
• Leverage the cost advantages of non-metro locations in tier 3
cities with nearby universities

Goal

• Open 30 Centers and Create 3,000 new US-based IT jobs
• Next 2 sites under analysis & negotiation


Current Environment
• 8+ Million Jobs Lost Over The Past 2 Years
• Unemployment Over 10%
• Underemployment Over 17%
• 401k Retirement Plans – Over ~ 35%
• Former Household Names Now Bankrupt p
And In Some Cases Gone Forever…


Social Implications
Reverse Migrations are
now occurring as
immigrants begin to return
g g
home with fewer
opportunities available.

Reverse Migrations are
also occurring as Gen X-
ers and Baby-Boomers
flee the metro areas


Social Implications

“The Boomerangs”
• 55% - men 18 – 24 live with parents
• 48% of women 18 – 24 live with parents
• 13% of adults with grown children experienced th b
f d lt ith hild i d the boomerang

What’s a Kid To Do?
• 54% unemployment of 16 – 24 year olds
• Record high college enrollment
g g
• 11.5 million 18 -24 year olds in college (record)


Rural America Brain Drain


Rural “Brain Drain”

Census divisions
Competitive share 70-00

> 5% relative decrease

0-5% relative decrease
0-5% relative increase

> 5% relative increase


Can Rural Sourcing Be a Solution ?

• $7.2 Billion In TARP Funds Targeted For
Broadband Installation In Rural America
• 60 Million People In US Live In Non-metro
America
• Robust Community College And Public
University S t
U i it System
• “Rural Renaissance”


Per Capita Income


Investment Worthy?


Will This Really Work?

Is It Feasible To Migrate From
Manual Labor To Mental Labor?

Forward Thinking Companies

• Over 5,800 Customer Care and Technical Care representatives
• Handling over 22 million calls per year
• Locations:
• Altoona PA
Altoona,
• Crestview, FL
• Great Falls, MT
• Hays, KS
• Klamath Falls, OR
Falls
• Meridian, MS
• Rapid City, SD
• Russellville, AR
• Tupelo MS
Tupelo,
• Montreal, Canada
• Plus extensive work from home staff.


Forward Thinking Companies

• Employee 43,000 people
• $2.3 Billion company
• Provides telecommunications infrastructure, conferencing, and customer
service and sales representatives
• Sample US Locations:
• Endicott, NY
• Rocky Mount, NC
• Pasco WA
Pasco,
• West Des Moines, IA
• Appleton, WI
• Texarkana, AR
• @Home personnel


Forward Thinking States
OFF-SHORE IOWA
Communities provide
technologically enhanced
administrative business
locations—space for businesses
requiring “knowledge-based”
employment. Each of these Iowa
communities has the connectivity,
employees and facilities to meet
the demands of business
business.


Conclusions
Tomorrow’s Winners will be the ones who capitalize on
Today’s undervalued and under utilized assets…

• 60 million people living in low cost non-metros
• An accessible college/university system
g y y
• High speed connectivity will become
ubiquitous
• US bbased b i
d businesses must continue t cut
t ti to t
costs and improve productivity
• Federal and State political leaders looking for
ways to create new jobs


Perfect Storm Brewing ?


From Vicious Spiral To Virtuous Cycle[1]

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