WV Executive

Hundreds of thousands of white-collar jobs are being outsourced offshore, many of which could be captured by West Virginia.

Over the past few decades a trend towards talented West Virginians moving out of state to pursue better jobs in places like New York, San Francisco and DC has become commonplace. But the rules are quickly changing. New Internet communication technologies have made it possible to perform those same jobs remotely. Unfortunately, most of the new jobs are being performed remotely from India and China, instead of from West Virginia.

Are we missing out on the biggest employment opportunity our state has ever had? Savvy US business executives are outsourcing billions of dollars in work to more affordable locations offshore, much of which could be performed affordably from West Virginia. Why are we not getting a slice of those new jobs?

Arguably, it is because we have not yet refined our business model. Offshore companies are aggressively marketing to US corporations. In the eyes of most US corporations, West Virginia does not yet cater to outsourcing, so we are unlikely to be on their radar as an alternative.

Misconceptions

Misconceptions may be holding us back. We may feel that these jobs are less attractive and we would not want them anyway; or it may appear that West Virginia could not possibly compete with India on price.

However, much has changed since the early days of call centers. Today’s collaboration technologies allow virtual teams of highly skilled professional workers to develop large-scale software systems, run banks and do almost anything that can be done from a physical office. Said another way, call centers were just a prototype and these jobs are the real thing. Many of these jobs are good jobs.

Admittedly, West Virginia cannot compete with India on price alone, but we can certainly work more affordably than New York City and compete with other factors. Our labor force can perform New York jobs for 20 to 30 percent less than inner-city talents, while enjoying a superior quality of life. We can get in front of customers in Cleveland, Pittsburgh and DC. We offer the peace and mind of an integrated legal system and a familiar place to visit. We can be more responsive than offshore workers because we share the same time zone, not to mention language and social culture. We have so much to offer.

World View

This is not just about West Virginia. It is about saving US jobs too. We offer our country a wonderful alternative to offshore outsourcing. Certainly many sponsoring companies would be driven to keep jobs in the US, while still reducing their operating costs. West Virginia needs to stake its claim as the outsourcing capital of the US, seeking a fraction of the US outsourcing market and a smaller fraction of the global outsourcing market.

The potential benefits are tremendous. The current offshore outsourcing market is more than 10 billion dollars in the US alone, and growing fast. Certainly many sponsoring companies would be driven to keep jobs in the US, while still reducing their costs.

This may sound like a great concept, but be assured it is far more than that. Ask India if outsourcing is a “concept”. It is one of the greatest market shakeups of all time. In comparison, the gas companies thought they owned lighting forever until electricity came along. Likewise, cities have cornered the market on employment for years, until Internet communication technologies came along. Reports show trends toward leaving cities to work remotely. Corporations can no longer justify metropolitan employee costs. The playing field has been leveled for rural America. Companies in other states are already taking a hard look at rural outsourcing. Rural Sourcing Inc. (RSI), an Arkansas-based IT outsourcing firm, has been receiving national media attention.

With A Little Vision

Envision this. In five years, thousands of West Virginians will be working for major corporations from their homes. We will be engineering automobiles, designing software, producing artwork and just about anything imaginable. We will work seamlessly with other team members from around the world, while feeling integral to the larger team’s efforts. Businesses will be able to tap into our resources quickly, without building physical facilities. By organizing our resources, we will compete on an even playing field with much bigger players from around the world.

Conversely, if are too passive, our workforce will not have matured because it did not participate. We will have a few success stories, but for the most part US corporations will have already established long-term relationships with other vendors in rural communities and different countries. Once those relationships are established, our opportunity will have been largely missed.

Needless to say, participation is very important. Success will require embracing and refining West Virginia’s outsourcing model wholeheartedly. Great strides are already being made regarding our communication and training infrastructures, and there will always be room for improvement in those areas. We must also answer some fundamental questions. How can we attract and develop outsourcing companies, so that we can get the ball rolling? How can we raise awareness throughout corporate America of West Virginia’s organized pool of knowledge workers? Are we willing to dedicate resources to those initiatives, and where will those resources come from?

Success requires an organized effort and an aggressive awareness campaign. It means maturing our software and broadband infrastructures to support a new type of workforce that does most of its work remotely. West Virginia companies will need to adapt their business models and join forces to compete with the larger outsourcing firms.

Fortunately, we are still early in the game. By working together, we are positioned for success. West Virginia offers a great value for customers and an outstanding lifestyle for our people. For the time being, the potentials seem limitless. These are good times for West Virginia.