Some firms replace offshoring with onshoring (jobs in US)

[Omaha Steve]

http://www.latimes.com/business/la-fi-onshore21oct21,0,683006.story?coll=la-home-center

Small U.S. towns can match India in cost. Northrop Grumman plans up to 50 sites for tech support. Dell opens a center in Idaho.

By Peter Pae, Los Angeles Times Staff Writer
October 21, 2007
CORSICANA, TEXAS -- Gary Richardson left this boomtown-gone-bust in 1996 for a computer job in Dallas, the big city 60 miles north.

"I didn't think I would ever come back," Richardson recalled recently, "because there were no jobs like mine here."

Not until this year, when Northrop Grumman Corp. opened an information technology center in town and began recruiting IT specialists and software engineers.

In a twist on offshoring that Northrop has dubbed onshoring, the global defense and technology corporation has been shipping computer work to small-town America, shunning India's Bangalore and Mumbai.

Century City-based Northrop picked Corsicana and six other small cities, including Lebanon, Va., and Helena, Mont., as locations for employees who develop software and troubleshoot technical problems for clients hundreds or thousands of miles away.

It costs Northrop about 40% less to have the work done in Corsicana than in Los Angeles -- savings similar to what would be achieved by sending jobs overseas.

FULL story at link.

[midnight]

1. So if it is cheaper to onshore why have so many jobs gone

offshore?

[tekisui]

2. It may be In-sourcing.

I heard Thom Hartmann mention insourcing today. Multi-national corporations, based in foriegn countries, are coming to America and building plants and providing jobs. Low level jobs come here, while the profits go overseas.

[NJCher]

3. well duh

It only took them a decade to figure this out?



Cher