WaveCreste, a Plymouth, Mass., provider of corporate systems services, uses a remote data center, but not offshore. By maintaining a facility in Abilene, Texas, the company takes advantage of a low cost of living, and the resulting lower cost of labor.
Though “rural-sourced” IT services aren’t quite as cheap as overseas outsourcing, WaveCreste CEO Chris Burton said the model comes with certain advantages.
On average, WaveCreste’s hourly rates are about 30 to 40 percent higher than its foreign counterparts’ rates, Burton said. But that’s still as much as 30 percent less than those of many domestic competitors, he said.
The roughly 150 Texas employees earn between $30,000 and $50,000 per year, on average. That works in a place where the median home price is less than $99,000.
The company seems to see this approach as a strategic advantage. On its home page, it says:
Our unique Rural Sourcing service delivery model features our rural U.S.-based solution centers, the deep industry expertise of our people, and tight collaboration with our clients. This approach provides our clients with superior value and ease-of-management when compared to in-house or offshoring solution sourcing options.