Opher BanarieOutsourcing Into Iowa
January 20th 2009 18:23
There has not been much good news about jobs in the Plains states in recent years, but that might change soon. IBM has leased a building in downtown Dubuque, Iowa, to use as a service delivery center, essentially a call center for support personnel. As many as 1,300 people could be employed there by the end of 2010.
But that's not all...
These kinds of education and recruitment programs often cause cascading effects in the surrounding job markets. For example, if other companies need to hire technical resources, they may begin opening similar facilities in the area. Michael Dell, are you listening?
The partnership with the schools could also have some far-reaching results, such as expanded enrollment in the schools of students looking for high-tech education, new areas of research and study at the schools, and expanded recruitment to other companies.
Also, new jobs in Dubuque means demand for services and support facilities in the immediate area. Businesses such as restaurants, shops, car dealerships, housing, etc. will all see an increase as these jobs are staffed and the payroll flows through from IBM to employees to local merchants. Economists refer to this as the "multiplier effect", where a dollar of payroll may generate ten dollars of economic activity, or more, in the local community.
But that's not all...
In addition, IBM says it will work with institutions of higher learning in the tri-state area of Iowa, Illinois, and Wisconsin for recruitment and training of potential employees. IBM also will look for opportunities to partner with these schools to enhance their curricula to better prepare students for opportunities in the IT industry, including the types of roles found at IBM. (Dr. Dobb's Update)
These kinds of education and recruitment programs often cause cascading effects in the surrounding job markets. For example, if other companies need to hire technical resources, they may begin opening similar facilities in the area. Michael Dell, are you listening?
The partnership with the schools could also have some far-reaching results, such as expanded enrollment in the schools of students looking for high-tech education, new areas of research and study at the schools, and expanded recruitment to other companies.
Also, new jobs in Dubuque means demand for services and support facilities in the immediate area. Businesses such as restaurants, shops, car dealerships, housing, etc. will all see an increase as these jobs are staffed and the payroll flows through from IBM to employees to local merchants. Economists refer to this as the "multiplier effect", where a dollar of payroll may generate ten dollars of economic activity, or more, in the local community.
| 54 |
| Vote |
Add To: 
subscribe to this blog