TPI Study: Decline in Global Outsourcing Benefits Rural America
By Mini Swamy, TMCnet Contributor
Advisory firm TPI had some very good news for business process outsourcing (BPO) providers with rural America delivery locations when it announced that there had been a positive shift in global outsourcing.
A demonstration of this decline in global outsourcing can be witnessed in the growth of Caleris, a BPO provider with rural America delivery locations. The company claims that the 18 percent decline in global outsourcing has contributed to Caleris' consistent 30 percent annual growth over the past three years.
"With rural American delivery locations, Caleris can exceed offshore quality and compete on a true cost per call and more U.S. businesses are realizing they can achieve better results without shipping the jobs overseas," said Sheldon Ohringer, co-founder of Caleris, in a press release.
In addition to Caleris, other BPO firms have also experienced growth. They have attributed this to their increased ability to provide better and faster first call resolution outcomes in comparison to their overseas counterparts.
Earlier this year Caleris and other BPO firms reported double-digit growth in operations and staffing over the past few years. Access to an educated workforce, affordable cost of living, and high-speed Internet connections in the country have all been responsible for such growth.
In addition, lower dollar contracts with multiple service providers enable specialized services, reduce the risk of high dollar contracts and accelerate the outsourcing of jobs to the rural U.S. rather than overseas.
TPI's report of a decline in global outsourcing and prediction of growth in the mid-level IT and BPO
sectors has set the stage for more onshore jobs in the U.S., a fact that will be exploited completely by BPO providers with rural delivery locations.
Ohringer commented on the shift in outsourcing and said, “In two of our rural locations Caleris is the largest employer in town. It's humbling to be part of a company that is helping keep U.S. jobs from going overseas while providing small towns with good paying jobs with healthcare benefits."
Mini Swamy is a contributing editor for TMCnet. To read more of her articles, please visit her columnist page.

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