Rural Sourcing bills at $38 to $45 an hour for programming work, considerably less than a $80/hour Northern California programmer. Although a Java coder in a major Indian city costs about $23, White estimates that the true cost of offshoring such a position is at least $30, including management, travel, and other startup expenses. Given the additional “soft” costs of outsourcing, I have to believe that this narrow a cost differential will help make Rural Sourcing successful—provided the educational infrastructures in Arkansas and North Carolina can provide a ready source of labor.

Economic development officials from Arkansas Governor Mike Huckabee’s office helped with the establishment of the Rural Source operation in Jonesville. Arkansas constituents should be delighted with the economic development philosophy expressed by a quote from one of Huckabee’s spokesmen: “We know we're no longer just competing with other states; we're competing with India and other countries."

With that attitude, states like Arkansas have a much greater chance of success with their economic development strategy. Those with their head in the sand, believing it’s still a “state vs. state” game, don’t have much of a chance.