The 2010 Outsourcing World Summit®
 Disney’s Yacht & Beach Club Convention Center● Lake Buena Vista, Florida
 February 15-...
The 2009
                                                         Monty Hamilton
                                         ...
Who We Are
            Rural Sourcing Inc.

            • Founded in 2004
            • Wholly owned subsidiary of Clarkst...
Current Environment
   •      8+ Million Jobs Lost Over The Past 2 Years
   •      Unemployment Over 10%
   •      Underem...
Social Implications
                                                     Reverse Migrations are
                          ...
Social Implications

  “The Boomerangs”
    • 55% - men 18 – 24 live with parents
    • 48% of women 18 – 24 live with par...
Rural America Brain Drain




Copyright © 2010 IAOP. All Rights Reserved.
                                                ...
Rural “Brain Drain”




                                                                              Census divisions
   ...
Can Rural Sourcing Be a Solution ?

      • $7.2 Billion In TARP Funds Targeted For
        Broadband Installation In Rura...
Per Capita Income




Copyright © 2010 IAOP. All Rights Reserved.
                                                   Copyr...
Investment Worthy?




Copyright © 2010 IAOP. All Rights Reserved.
                                                    Cop...
Will This Really Work?




          Is It Feasible To Migrate From
          Manual Labor To Mental Labor?
Copyright © 20...
Forward Thinking Companies


                                         • Over 5,800 Customer Care and Technical Care repres...
Forward Thinking Companies


                                              • Employee 43,000 people
                      ...
Forward Thinking States
                                                    OFF-SHORE IOWA
                               ...
Conclusions
             Tomorrow’s Winners will be the ones who capitalize on
             Today’s undervalued and under ...
Perfect Storm Brewing ?




Copyright © 2010 IAOP. All Rights Reserved.
                                                  ...
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From Vicious Spiral To Virtuous Cycle[1]

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IAOP Outsourcing World Summit Presentation - Domestic Sourcing, Solution to US Unemployment

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From Vicious Spiral To Virtuous Cycle[1]

  1. 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
  2. 2. 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. Copyright © 2009 IAOP. All Rights Reserved.
  3. 3. 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 Copyright © 2010 IAOP. All Rights Reserved. Copyright © 2009 IAOP. All Rights Reserved.
  4. 4. 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… Copyright © 2010 IAOP. All Rights Reserved. Copyright © 2009 IAOP. All Rights Reserved.
  5. 5. 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 Copyright © 2010 IAOP. All Rights Reserved. Copyright © 2009 IAOP. All Rights Reserved.
  6. 6. 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) Copyright © 2010 IAOP. All Rights Reserved. Copyright © 2009 IAOP. All Rights Reserved.
  7. 7. Rural America Brain Drain Copyright © 2010 IAOP. All Rights Reserved. Copyright © 2009 IAOP. All Rights Reserved.
  8. 8. Rural “Brain Drain” Census divisions Competitive share 70-00 > 5% relative decrease 0-5% relative decrease 0-5% relative increase > 5% relative increase Copyright © 2010 IAOP. All Rights Reserved. Copyright © 2009 IAOP. All Rights Reserved.
  9. 9. 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” Copyright © 2010 IAOP. All Rights Reserved. Copyright © 2009 IAOP. All Rights Reserved.
  10. 10. Per Capita Income Copyright © 2010 IAOP. All Rights Reserved. Copyright © 2009 IAOP. All Rights Reserved.
  11. 11. Investment Worthy? Copyright © 2010 IAOP. All Rights Reserved. Copyright © 2009 IAOP. All Rights Reserved.
  12. 12. Will This Really Work? Is It Feasible To Migrate From Manual Labor To Mental Labor? Copyright © 2010 IAOP. All Rights Reserved. Copyright © 2009 IAOP. All Rights Reserved.
  13. 13. 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. Copyright © 2010 IAOP. All Rights Reserved. Copyright © 2009 IAOP. All Rights Reserved.
  14. 14. 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 Copyright © 2010 IAOP. All Rights Reserved. Copyright © 2009 IAOP. All Rights Reserved.
  15. 15. 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. Copyright © 2010 IAOP. All Rights Reserved. Copyright © 2009 IAOP. All Rights Reserved.
  16. 16. 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 Copyright © 2010 IAOP. All Rights Reserved. Copyright © 2009 IAOP. All Rights Reserved.
  17. 17. Perfect Storm Brewing ? Copyright © 2010 IAOP. All Rights Reserved. Copyright © 2009 IAOP. All Rights Reserved.

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