Outsourcing to Rural America – Watford City, ND is a town of 1,435 people. It is nearly 50 miles from the closest stoplight and you’ll have to drive 47 miles for a Big Mac. So why are people moving here?

Maybe it has something to do with Nick DeBronsky, CEO of CrossUSA, who believes, "it doesn’t matter where you are anymore."

CrossUSA is a computer consulting company that has built its business plan on and in rural America. The company recruits in computer programmers to work in their converted old John Deere dealership here in Watford City. CrossUSA addresses IT issues for companies all over the U.S. These programmers have typically been laid off due to offshore outsourcing – their jobs went to India, many of them are in their 50’s, and many (if not all of them) are not from rural North Dakota.

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Many thanks to Tom Rolfstad for passing this along. Russ

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By operating in rural America, CrossUSA is more competitive with offshore choices because the cost of doing business is considerably lower in Watford City ND than in Chicago or San Francisco! The advantages for CrossUSA’s clients, besides proximity, is that the workers have a better understanding of their business and business climate – benefits that many companies can’t afford to forego.

There are challenges to the business plan though. For example, in Watford City there aren’t a lot of amenities that these transplanted programmers took for granted in their former metro-homes. And the workers have to be willing to take, sometimes substantial, pay cuts. But the cost of living is much less, and a less stressed life (no rush hour, no congestion, no smog) balance out the paycheck. The other major challenge in Watford City is housing – they’re out of it! How many rural ND towns have that problem?

CrossUSA isn’t the only IT firm operating from rural America. Last weekend on my blog I talked about Rural Sourcing, Inc. RSI, founded by Dr. Kathy Brittain White, is an IT employer using the global outsourcing model to outsource to rural America. Headquartered in Jonesboro, AR with a second location in Greensboro, NC and satellite offices in AR and NM, RSI’s goal is to eventually employ 2500 workers in 30 states. Again, their business plan is built on the lower operating costs in rural America. And RSI operates in a niche of short-term projects, the kind you wouldn’t spend 12+ months on paperwork to take it offshore, of two to three month durations.

CrossUSA and RSI are just two examples of innovative thinking and knowledge based employment being used at a competitive advantage in rural America. There are other services that are fleeing the U.S. metro areas looking for a cost savings. They can find that savings in India, or they can find it in rural America. We just need more people like Nick DeBronsky and Kathy Brittain White capitalizing on the opportunities here at home.

The Blog Log

Visit my weblog to see where I’ve been and what I learned along the way. This past week I blogged on Glory Days, my trip to Grants Pass, OR, good ‘ol hard working country boys and several other topics. Plus, I’ve now added pictures to the blog! So you can not just hear about where I am, but see for yourself the great small towns across America I’m visiting! http://www.boomtownusa.net

On the Road Again

In addition to my travel blog I’ll list my upcoming engagements in each issue of The Agurban. Come see me when I’m in your neighborhood!

Jack’s Schedule – Week of September 19, 2005

Tuesday, September 20 – York, NE

Saturday, September 24- Indianapolis, IN

Jack Schultz is the CEO of Agracel Inc., an industrial development firm majoring in rural America, author of Boomtown USA, and speaker.

Visit the Boomtown USA website at http://www.boomtownusa.net
Keep up with Jack as he tours the country on his blog!
To learn more about Agracel visit http://www.agracel.com