RadixBay Rural Delivery
Rural Shore Outsourcing
RadixBay has developed a new approach that breaks the traditional IT outsourcing model by utilizing rural development centers to deliver high quality, cost effective solutions for our clients. We believe the RadixBay rural shore model model delivers better results and more value than traditional onshore, nearshore, and offshore offerings.
Service Delivery Centers
The Rural Centers, due to their close proximity to their US based clients enable more efficient communication, while the Rural Center consulting rates are competitive with the leading offshore markets, such as India and China.
The Rural Centers also provide high-quality, US-based resources that rival larger, traditional onshore consulting firms at a fraction of the cost. Traditional onshore firms source their consultants from larger metro areas that have a higher cost of living than rural locations. This overhead simply does not exist within the RadixBay Rural Development Centers. The savings, quality and efficiencies are enjoyed by our clients.
Rise and Fall-ing of IT Offshore Outsourcing
The US market was one of the first to broadly embrace the offshore sourcing model to access lower IT labor rates and a large talent pool. Forrester Research estimates the number of IT jobs outsourced by U.S. based companies to offshore facilities grew from 830,000 in 2005 to 3.4 million in 2015.
Growth in the IT offshore sourcing model was fueled by the common perception that offshore IT firms provide highly qualified and capable consultants at a fraction of the costs compared to the U.S. firms. In many cases this may be true, however, after working with offshore providers, most U.S. technology leaders have learned that not all IT projects and initiatives are candidates for offshoring.
IT leaders have also learned they must have other viable IT sourcing options in order to address pressures such as regulatory and compliance, security concerns and quality demands. Over the last decade, there has been a strong movement to rationalize between low cost offshore providers and over-priced, traditional, U.S. based consulting and outsourcing firms. Buyers are now looking for business impact, not just lowest-cost options. The movement is underway…..
Why Companies are Reconsidering Offshore Strategies
- Offshore Supplier Performance 36% 36%
- Inability to Realize Cost Savings 22% 22%
- Time Zone Issues 14% 14%
- Negative Customer Perceptions 14% 14%
- Social Beliefs 8% 8%
- Government Incentives 6% 6%
The Rural Sourcing Advantage
Leading organizations are now considering a more balanced and holistic model of global delivery, including high quality, lower cost rural sourcing options.
RadixBay’s model is based on a multi-shore delivery approach. Our Client Management and Agile Engagement Model allows us to focus on ensuring the engagement’s success, by managing resources on Client Site, in our Rural Development Centers, and Offshore.
Our belief is that over time, more of our clients’ long term IT outsourcing needs will be addressed mainly from our Rural Centers, however, we understand the benefits and flexibility of a multi-shore delivery model.
Benefits – The Process and The People
- The realization of long-term value and lower total cost of ownership (TCO) by applying the proven model and approach.
- RadixBay’s Client Engagement Model consisting of Agile Project Management, Six Sigma and Engagement model leading practices coupled with ‘Right Shore’ delivery/deployment model.
- Increased velocity and efficiencies by leveraging all the advantages of common working hours, understanding US business practices, common culture and a common language, coupled with a lower cost basis for top IT consulting talent.
Greg Lovette, Radix Bay Founder and CEO,
on Rural Delivery:
My hometown is Tabor City, NC. It is a small place in farm country with good, hard-working people. Autumn Friday nights were all about Red Devil football. Cafes served as morning gathering spots for folks on their way to work at local factories or on the farm. My family is still there in Tabor City and wouldn’t live anywhere else. My dad says years ago God planted Adam & Eve Lovette there and civilization spanned out from that. Growing up, I saw apparel and textile plants closing and the family farms shutting down…Read More