Insourcing American Jobs

Keeping jobs in the U.S. is a hot topic. Just last week, the White House hosted some of the nation’s most well-known companies to discuss how we can promote the insourcing of jobs in the United States. This has been a topic that the TechAmerica Foundation has been looking at for a while and found that insourcing American jobs, or in simpler terms – keeping jobs here at home, can be a reality that will still keep our companies competitive with the rest of the world.

We conducted a survey of the people that choose relocation sites at outsourcing companies to best determine what factors are the most influential when deciding where to locate a business unit.  We found that the two most important factors are:

  • The cost of doing business (real estate, labor rates, taxes, etc.)
  • Workforce (availability of qualified workers, nearby colleges and universities, etc.)

Additional factors were the quality of life and the business and political environment.

Increasingly businesses have been exploring the relocation of operations in smaller communities, including rural America because it is a competitive option.   Insourcing offers a qualified workforce that share common communication and business understandings, low-cost access to highly skilled U.S. talent (resulting in 20-30 percent savings) and a savings on travel costs as well as not having to accommodate for time-zone differences.

To learn more about what we’ve learned about insourcing, or as we’re calling it Low Cost Domestic Sourcing, take a look at the webinars we’ve been doing on the topic.  Our latest one discusses success stories from companies who are locating their businesses in smaller communities ( in the U.S.

Next month, we’ll be exploring programs and incentives that matter for promoting economic development, with a speaker from USDA, a local Economic Development Agency, and a representative from a Workforce Development Center so be sure to stop back.

Domestic sourcing benefits businesses, localities and the economy as a whole.  Businesses obtain lower cost structures, while maintaining and potentially enhancing quality of service and talent.  Localities obtain new employers and create jobs, increasing local economic growth and development.


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