News & Resources

Feb 2013 (Kearney, NE) Xpanxion Sees Record Growth, Software services provider hires record numbers in January.

KEARNEY, Neb., Feb. 26, 2013 /PRNewswire/ -- The software services company Xpanxion hired a record number of employees in its rural centers last month. Thirteen new software analysts were hired in the Kearney, Nebraska office, resulting in the rural center's most significant monthly growth since its establishment in 2006.

Through its rural sourcing model, Xpanxion brings tech jobs to the Midwest that would otherwise be sourced from metropolitan areas or overseas. Xpanxion's capability to bring on the additional new hires results from acquiring new clients and expanding business with existing customers. As client needs grow, Xpanxion scales its resources to maintain the same level of dedicated service.

New resources are seamlessly transitioned onto existing teams through Xpanxion's comprehensive support and training system. Each new employee, regardless of experience, completes a core group of six courses and is paired with an experienced consultant. Opportunities to enroll in over twenty progressive courses within Xpanxion's career development program are available and encouraged.

Employees are selected on several factors, including technological experience, business understanding, and overall aptitude. Typical rural center roles include quality assurance (QA) analysts, automation developers, and software developers, who provide services to clients ranging from Fortune 500 companies to start-ups.

Of the 13 new additions to the Xpanxion team last month, eight serve as QA analysts while the remaining five serve in developer roles. An additional two new hires were also added to the recently opened Ames, Iowa rural center. While January's new hire growth was the highest on record, projections show a potential increase of 30-45 additional employees by the close of 2013 across Xpanxion's Midwest centers. Xpanxion's sustained growth is an indication of the company's quality-driven processes and focus on customer needs.

If you would like more information about this topic, contact Mason Wambolt at Phone: (515) 520-3139 or pr@xpanxion.com

Feb 2013 (Kearney, NE)Xpanxion Sees Record Growth, Software services provider hires record numbers in January.

KEARNEY, Neb., Feb. 26, 2013 /PRNewswire/ -- The software services company Xpanxion hired a record number of employees in its rural centers last month. Thirteen new software analysts were hired in the Kearney, Nebraska office, resulting in the rural center's most significant monthly growth since its establishment in 2006.

Through its rural sourcing model, Xpanxion brings tech jobs to the Midwest that would otherwise be sourced from metropolitan areas or overseas. Xpanxion's capability to bring on the additional new hires results from acquiring new clients and expanding business with existing customers. As client needs grow, Xpanxion scales its resources to maintain the same level of dedicated service.

New resources are seamlessly transitioned onto existing teams through Xpanxion's comprehensive support and training system. Each new employee, regardless of experience, completes a core group of six courses and is paired with an experienced consultant. Opportunities to enroll in over twenty progressive courses within Xpanxion's career development program are available and encouraged.

Employees are selected on several factors, including technological experience, business understanding, and overall aptitude. Typical rural center roles include quality assurance (QA) analysts, automation developers, and software developers, who provide services to clients ranging from Fortune 500 companies to start-ups.

Of the 13 new additions to the Xpanxion team last month, eight serve as QA analysts while the remaining five serve in developer roles. An additional two new hires were also added to the recently opened Ames, Iowa rural center. While January's new hire growth was the highest on record, projections show a potential increase of 30-45 additional employees by the close of 2013 across Xpanxion's Midwest centers. Xpanxion's sustained growth is an indication of the company's quality-driven processes and focus on customer needs.

If you would like more information about this topic, contact Mason Wambolt at Phone: (515) 520-3139 or pr@xpanxion.com

June 2012 (Atlanta, GA)Xpanxion, LLC has recently expanded its career development and training program

Atlanta, GA – June 8, 2012 – The Atlanta-based software quality assurance and development company Xpanxion, LLC has recently expanded its career development and training program. It is designed to attract quality individuals with high aptitude and integrate them into the company as experts in their field.

Xpanxion finds itself in a unique situation given its unprecedented recent growth. Due to the high demand across the country for quality recruits with IT expertise, attracting a large number of candidates has become a priority. The company uses a trending business model called rural outsourcing where high-tech jobs are relocated to rural areas. By doing so, employees experience a lower cost of living and a greater quality of life, while clients of Xpanxion can take advantage of lower cost structures that rural locations provide. Xpanxion’s largest rural office is located in Kearney, Nebraska, which lies in a region that has among the lowest unemployment rates in the nation. This, combined with the growth of the company, increases the need to emphasize recruiting efforts to attract quality individuals to the company.

Recruiting occurs through several avenues across the country, but Xpanxion currently leverages strong relationships with the state and local governments of Nebraska and the University of Nebraska system. These mutually beneficial partnerships have allowed the company to target new college graduates as candidates for recently created positions and internships. Approximately a third of Xpanxion’s current employees were hired within three years of receiving a college degree.

The career development and training program at Xpanxion is broken down into multiple courses over a three-year time span. Training begins immediately when new employees are hired, establishing a foundation of core software development concepts. Courses must be attended by all employees to ensure full coverage of material and can pass only when displaying mastery of the content. Outside of class, in their initial months of employment, new employees are guided in their new project responsibilities by a senior-level Xpanxion associate. Upon completion of the first year of the training program, employees are required to become certified software quality assurance analysts from the American Software Testing Qualifications Board.

Years two and three of the program include a curriculum that emphasizes project management and leadership along with a variety of advanced applications including automation tools. Employees not only benefit from the program through rapid personal growth, but also in increased technical knowledge and skillsets.

Currently, Xpanxion offers 25 courses to its employees with ten additional classes to be rolled out in the next six months. Some course subjects include test planning, databases, SQL, performance testing, Linux, ETL, test strategies and automation tool Quick Test Professional.

If you would like more information about this topic, contact Mason Wambolt at Phone: (308) 338-0011 or pr@xpanxion.com

May 2012 (Kearney, NE)Xpanxion LLC announces pay off of economic development loan. Funds Have Created Over 70 High-Tech Positions in Central Nebraska

KEARNEY, NE - May 24, 2012 –A $290,000 zero-interest economic development loan from the City of Kearney and Buffalo County has been recently repaid by Xpanxion, LLC. The software company used funds from the loan to establish a Kearney, Nebraska office, which has brought over 70 high-tech positions to the community. With the principal repaid, the city and county has reapportioned that money to other economic development initiatives.

Xpanxion made its final payment in April, ending the five-year duration of the loan which began in May 2007. The loan was approved through the Community Development Block Grant (CDBG) program in coordination with the Nebraska Department of Economic Development. Using the CDBG program, federal funds from the Department of Housing and Urban Development are allotted to each state for the purpose of building infrastructure and advancing economic development. Local municipalities and states oversee the goals and distribution of the funds. Xpanxion was approved for a $290,000 zero-interest loan in 2006, with $205,000 coming from Buffalo County and $85,000 coming from the City of Kearney. In exchange for the favorable loan conditions, the funds were used by the Atlanta-based company to establish a Kearney office with the promise of creating at least ten full-time positions. Due to the effectiveness of Xpanxion’s rural software outsourcing model, the Kearney office has rapidly grown from two employees in 2006, to 71 employees today, surpassing the original promise. This substantial growth has consisted of retaining local talent and while also attracting new individuals to the Kearney area. A close relationship with the University of Nebraska at Kearney (UNK) has led to UNK graduates comprising approximately half of those employed by the company. Additionally, 75% of the company’s current Nebraska employees reside in Kearney, and a third of these have relocated to the Kearney area from across the nation to work for Xpanxion.

The funds that Xpanxion received five years ago were the result of a similar loan being paid back by a previous CDBG project. Now that the funds have been returned to local governments, the money has been redistributed to four other economic development projects within the county and city. Darren Robinson, Buffalo County Economic Development President, who oversees loans of this type said, “Xpanxion has been a leader in utilizing the economic development funds in Kearney. Buffalo County has been able to loan the funds to several businesses in the past 20 years, and Xpanxion made an excellent use of the funds by far exceeding the promised job creation. We appreciate Xpanxion’s continued efforts to create jobs in the community.”

If you would like more information about this topic, contact Mason Wambolt at Phone: (308) 338-0011 or pr@xpanxion.com

May 2012 (Kearney, NE)Xpanxion CEO speaks at rural futures conference in Nebraska. Nebraska Rural Futures Conference focuses on Rising Culture of Entrepreneurship.

LINCOLN - May 8, 2012 – The Nebraska Rural Futures Conference, convening through Thursday, May 10th, has an array of pivotal leaders and speakers scheduled to inform and engage attendees, including Governor Dave Heineman, National Geographic photographer Joel Satore, and Xpanxion chairman and CEO Paul Eurek.

The conference is designed to make leaders aware of the ever-changing conditions that affect the business environment, within the region and globally. Additionally, the conference aims to challenge individuals to shape the future of Nebraska into one that is robust, sustainable, and filled with diverse opportunities.”

Eurek also recently attended the National Governor’s Conference in Omaha at the end of April. Governor Heineman, chair of the National Governor’s Association, structured the conference to focus around the growth of state economies. This event also emphasized the increasing importance of innovation and entrepreneurship and included talks about improving economic conditions in the area. Xpanxion, Eurek’s company with offices in Kearney and Loup City, Nebraska, serves as an example of creating high tech jobs in rural America through software outsourcing. Other notable attendees included Iowa Governor Terry Branstad, Michigan Governor Rick Snyder, and University of Nebraska President J. B. Milliken.

Xpanxion, LLC provides outstanding software services to a variety of multinational companies. Founded in 1997, the company specializes in providing excellent software quality assurance, development, and consulting to its clients who exist across multiple industries and lines of business. Xpanxion’s Rural Outsourcing model, which leverages lower cost structures by combining global, onsite, and rural operations, has been proven successful by incredible growth and is continually picking up momentum across the country. The company’s website can be found at www.xpanxion.com

If you would like more information about this topic, contact Mason Wambolt at Phone: (308) 338-0011 or pr@xpanxion.com

Aug 2011 (Ames, IA) Software company will add 20 jobs to Ames economy

A Georgia-based software development company will bring 20 new jobs to Ames with the hope of attracting more, according to sources with the city of Ames, the Ames Chamber of Commerce and Ames Economic Development Commission.

Rural Soluxions LLC, an offshoot of Alpharetta, Ga. based Xpanxion LLC, intends to open its Ames office in October, according to the commission.

“The addition of these jobs is well suited for both experienced IT workers and graduates of Iowa State University who want to remain in Ames to start their careers,” said Ron Hallenbeck, Ames Economic Development Commission vice president for existing business and industry.

According to its website, parent company Xpanxion offers software application development, design, architecture, maintenance and support, mobile device platform development, quality assurance and start-up solutions.

Besides its headquarters in Georgia, the 13-year-old company also has offices in Kearney and Loup City, Neb., and Pune, India. Its website is www.xpanxion.com.

The AEDC said the main focus at the Ames office will be “software testing and quality assurance services for existing and future clients.”

On Aug. 9, the Ames City Council approved a resolution that supports Rural Soluxions’ application for financial assistance from the Iowa Economic Development Commission, together with an $11,000, no-interest loan, which the company will obtain through the AEDC. Half the loan is forgivable, the council was told.

City staff reported that the application does not meet Ames’ benchmark for additional financial assistance from the city because the new jobs will pay a wage that “slightly exceeds” the Story County average pay rate of $16.34 per hour.

City financial assistance is available if the new jobs pay 130 percent of the county average, or just more than $21 per hour, the report said.

Bob Zientara can be reached at (515) 663-6961 or zientara@amestrib.com.

July 2010 A Postcard from the Americas U.S.: Domestic Outsourcing Takes Flight

Arkansas is known for being former President Bill Clinton’s home state, and of course, for being the headquarters for the world’s biggest retailer, Wal-Mart. But Arkansas as an outsourcing hub? As a number of rural startups have begun to attract projects destined to go beyond U.S. borders, the state of Arkansas plans to grab a slice of the outsourcing pie.

The issue of outsourcing or offshoring has been a touchy one in the U.S., occupying the attention of Presidents and Senators alike. But amid the hullaballoo over sending U.S. jobs to Bangalore or Gurgaon in India, a quiet revolution is budding in America’s lesser-known towns and states. American firms are discovering the value of outsourcing – not to India, but to domestic companies like Rural Sourcing, a small firm employing just about 20, which offers pretty much the same sort of labor costs of Indian and other Asian companies.

So, what are the advantages these local providers may offer to an American firm keen to cut costs? Based as they are in smaller towns and cities, a lower cost of living immediately means that domestic outsourcing firms can manage with cheaper wages for their workers. The wages may still be around 15% higher than a typical Indian wage, but the benefits of working in the same time zone and the absence of communication difficulties more than offset the slightly higher costs. Also attractive to the American consumer, companies are quick to cite the legal advantages, smaller travel expenses and reduced worry about the security of confidential documents and information.

Not to mention the feel-good factor. With the national unemployment rate hovering at just under 10 at 9.3% in May 2010, domestic outsourcing may provide the necessary fillip to a sluggish job market. And companies now are eager to cash in on the public perception that they are giving something back to the domestic economy, what Rural Sourcing calls as ‘supporting regional economic development.’ That said, Arkansas had a slightly better unemployment figure of 7.5% in April of 2010.

Interestingly, at least one company, Xpanxion shifted from its software testing center in Pune, India to Nebraska, citing ‘lower operational costs.’ At that time, Xpanxion commented that rural centers are certainly cheaper than say, Boston or Chicago or New York, and said that the availability of a strong work ethic in the hinterlands of the U.S., as well as low employee turnover, turned the tables in favor of domestic outsourcing in rural America.

It is clear that the global outsourcing industry, valued at around $60 billion annually, does not view domestic outsourcing as a threat anytime soon and indeed it is not. But as towns from Joplin to Eveleth to Macon start to mushroom information technology centers, it is also evident that domestic outsourcing is not a mere blip on the outsourcing radar screen. It is turning out to be a profitable niche industry in itself, not to mention a way to create jobs right here at home.

Bob Zientara can be reached at (515) 663-6961 or zientara@amestrib.com.

July 2010 (Kearney, NE) Managing rapid growth in testing consulting and outsourcing

In a series of questions and answers with ISTQB Certification News (ICN), AshLea Millsap of Xpanxion, LLC gave her perspective on how her company is managing the challenges of rapid growth with the help of certification.

Managing rapid growth in testing consulting and outsourcing

Editor's Note: How does ISTQB software testing fit into the testing consulting and outsourcing business? In a series of questions and answers with ISTQB Certification News (ICN), AshLea Millsap of Xpanxion, LLC gave her perspective on how her company is managing the challenges of rapid growth with the help of certification.

ICN: What are the testing challenges your organization faces?

Millsap: As Xpanxion evolves and grows at a rapid pace, we experience both successes and challenges. How we have leveraged our testing challenges is what sets us apart from others. One of the challenges we have had involves consistency in our testing approach as it relates to our individual testers, project teams, and clients. ISTQB has provided a foundation that allows us to provide consistency by training testers on the latest quality assurance testing processes and terminology.

Another challenge we have encountered and created a solution for, involves bringing new testers up to speed quickly. ISTQB has aided in our training process, in that we require all new Xpanxion employees be ISTQB certified testers. We provide a number of materials to help new employees study and retain the ISTQB curriculum. Additionally, because of our in-depth training process, we are able to demonstrate to our clients that new quality assurance testers can be just as effective as peers with more years of experience.

ICN: What led you to consider certification?

Millsap: Xpanxion chose to implement the requirement of certification because of our desire to create a consistent and sophisticated training program that included a globally recognized foundation level certification. Our desire is to equip all employees with tools to enable them to achieve a high level of success within their careers. We feel the retention of the certification material and the certification itself is powerful in that it increases the depth of knowledge and provides a sense of employee confidence in their daily work.

ICN: Why did you choose ISTQB certification?

Millsap: After extensive research on several quality assurance testing certifications, we found ISTQB to be the best option. We evaluated the curriculum and its contents, global presence, and the industry acceptance of the certification. The fact that ISTQB is globally recognized as the most valuable and prestige certification led us to reviewing its curriculum and ultimately the decision to implement it within our Nebraska operations.

ICN: How has this helped your organization?

Millsap: ISTQB has proved to be a successful tool in our training process and throughout our company for several reasons:

  • Since our implementation of the certification requirement in late 2009, 60% of our Quality Assurance Analysts (our official job title for testers) are now ISTQB certified. While the 60% number is encouraging, our goal is to have 100% of our QA Analysts certified in the coming months.
  • ISTQB has become a core part of Xpanxion's training program.
  • By confirming our resources are ISTQB certified, our clients can instantly know our resources, regardless of background or level of experience, have been trained on Quality Assurance standards and best practices, and have had to pass a vigorous test to demonstrate mastery of the material.
  • Many of our clients use different terminology, so with ISTQB as a foundation for all employees, we are able to achieve a high level of consistency in the area of verbal QA communication and the understanding of QA practices.
  • ISTQB has helped us achieve consistency, because all of our employees review the same materials when they start with us regardless of experience level. All new testers and experienced testers are exposed to a sophisticated Xpanxion training program that includes ISTQB certification preparation and ultimately the certification itself.
  • With many of our employees now certified, there is growing interest in taking the certification to the next level of Advanced ISTQB Certification.
If you have questions about Xpanxion, you may contact AshLea at amillsap@xpanxion.com or learn more about Xpanxion at www.xpanxion.com.

April 2010 (Omaha, NE) Xpanxion receives prestigious Walter Scott award

Xpanxion Receives prestigious Walter Scott award for demonstration of innovativeness in developing programs and creation of career opportunities for students across the state

From left to right: Nebraska entrepreneur Walter Scott, Paul, and the University of Nebraska President James B. Milliken

Xpanxion Chairman and CEO Paul Eurek recently accepted the prestigious Walter Scott award at a ceremony held at The Scott Conference Center in Omaha.

The Walter Scott Award is given annually to the Nebraska company that best demonstrates innovation in developing programs to partner with the University of Nebraska in the creation of career opportunities and skills development for its students across the state.

Mr. Scott, the Chairman and founder of Level 3 Communications (NYSE LVLT) is credited with having the vision and the understanding of how linking private sector entrepreneurs with University professors and students will better prepare Nebraska’s future industry and public leaders for life in the real world. Mr. Scott was at the ceremony to personally present the award to Mr. Eurek.

Xpanxion is a software engineering company that helps U.S. companies build software applications that help them compete more effectively in the global economy. Xpanxion clients range from multi-national Fortune 500 companies to new technology start-ups.

"Xpanxion's work in Nebraska is a great example of a public-private collaboration that benefits the University, the company and the community," said University of Nebraska President James B. Milliken. "By offering internships and jobs to our students, collaborating with our faculty to develop new courses and bringing technology experts to Nebraska, Xpanxion has shown how public-private partnerships can move the state forward."

In 2006, Kearney was chosen as Xpanxion’s hub specifically because of its state University campus, and the desire to develop long-lasted partnership programs with the University. These programs include formal internships, classroom teaching, career fairs, entrepreneur education, and most recently the co-development of an MIS department class conducted at Xpanxion’s offices. This class is one of the first of its kind in the country, and introduces students to a career in software Quality Assurance and software Test Engineering.

“We are extremely proud to have won this award”, concluded Eurek. “We share the honor with the University, the communities of Kearney and Loup City, and the Nebraska Department of Economic Development, who have all embraced the vision of how working together to create technology careers can lead to keeping our college graduates right here in Nebraska to serve and grow the state’s economy.”

Xpanxion Receives ISO 9001:2008 Certification for its Quality Management System

Atlanta, GA (January 2, 2010) – Xpanxion, a US based and operated premier provider of global software engineering and outsourcing services, has received the internationally recognized ISO 9001:2008 certification for its Quality Management System. Xpanxion has demonstrated its commitment to meeting the globally recognized management system requirements and regulations for the operation of its IT outsourcing services including software application design, development, and testing.

John Wichmann, president of Xpanxion announced, “Xpanxion’s ISO 9001:2008 certification is an important achievement that illustrates to our customers our focused commitment to quality within all levels of our organization. We want our customers to be confident that Xpanxion can meet and exceed their requirements in a timely manner while creating real value for them through our innovative approach to IT outsourcing. Our success at achieving ISO 9001:2008 certification is proof that Xpanxion is continually striving to improve the solutions we provide to our customers as well as our quality management system.”

ISO 9000 is a family of standards for quality management systems and an important differentiator within the market. It is maintained by ISO, the International Organization for Standardization and administered by accreditation and certification bodies. Achieving ISO 9001: 2008 certification can help companies increase their credibility within the market. The certification is designed to ensure customer satisfaction with products or services and certifies that a company or organization is applying formalized business processes. It recognizes organizations that can link business objectives with operating effectiveness.

About Xpanxion

Founded in 1997, Xpanxion, LLC is a US based leading provider of global software engineering services that helps clients to transform their businesses through the application of an innovative cross-sourcing delivery model. Clients partnering with Xpanxion are able to leverage the company’s onshore, offshore and rural sourcing capabilities to implement the most effective and efficient solution for their organization’s needs in such areas as Application Development, Maintenance, Quality Assurance and Business Process outsourcing. Representative Xpanxion clients include EarthLink, NCR, InterContinental Hotel Group, Oversight Systems, Inc., Goldleaf Financial Solutions, and others.

For more information please contact: www.xpanxion.com

October 2009 (Atlanta, GA) Rural America Catches a New Wave of Technology Sourcing

Rural America Catches a New Wave of Technology Sourcing

A Unique Approach to Rural Sourcing Expands in Central Nebraska

Atlanta, GA (October 13, 2009) – Xpanxion, LLC, a premier provider of global software engineering services, has not only caught the new wave of technology outsourcing—they helped create it. For the past two years Xpanxion has worked on perfecting a business model that helps bring good paying technology jobs to central Nebraska. Initially, Xpanxion’s clients were skeptical that they could find the kind of technology professionals in Nebraska that they were accustomed to hiring within the large cities or from large offshore outsourcing firms, but not anymore. Anxious engineers from across Nebraska and across the country are vying for the opportunity to work on leading edge technology projects sponsored by several progressive Fortune 500 companies.

Today, while many technology service companies are struggling in this uncertain global market, Xpanxion’s opportunities are booming. It’s all based on selling its customers on the concept of using hi-tech teams in rural Nebraska to test their enterprise and other mission critical software applications. “This went from concept, to lets give it a try, to how fast can you hire more people,” explains John Wichmann, Xpanxion’s President. “Because our costs are lower in Nebraska, our clients realize savings over competitive services provided within large metro areas such as Atlanta, L.A. or Boston, but they still reap the benefits of working with highly skilled, experienced QA consultants.”

The efficiency and quality standards afforded by a domestic facility can be significant factors in a company’s decision to use rural sourcing instead of hiring premier consultants or offshore teams. Additionally, amid ongoing concerns about high US unemployment, rural sourcing provides companies with a viable alternative to offshoring that cuts their operational costs while strengthening the US economy.

“Our state’s future is dependent on conducting business in the current global economy across all industry sectors. Xpanxion’s international software testing center in Kearney, Nebraska is a prime example of how our rural communities can create hi-tech job opportunities that keep our best and brightest in-state,” stated Nebraska Governor Dave Heinaman, a long-time champion of strengthening rural Nebraska by encouraging innovative business development in communities such as Kearney. With offices worldwide, Xpanxion expanded its business to Kearney in 2006, and Loup City, Nebraska in 2008 with partial funding provided through the Nebraska Advantage Program.

“When you consider the negative publicity surrounding layoffs and offshore outsourcing, and contrast it with the efficiencies of working with a US-based provider, you can understand why so many companies have shown an interest in our services in Nebraska,” Wichmann says. “For many companies, offshoring is still an essential part of their sourcing strategy, but our exclusive cross-sourcing delivery model, which allows clients to leverage a combination of offshore, onshore and rural services, delivers a “best-of-all-worlds” solution to more precisely meet an organization’s unique needs”.

“We’re helping to build the new SiliCORN Valley and according to our company’s founder, a local Nebraska entrepreneur, this could be the best thing that’s happened in Nebraska since Coach Bo Pelini” quipped Wichmann.

About Xpanxion

Founded in 1997, Xpanxion, LLC is a leading provider of global software engineering services that helps clients to transform their businesses through the application of an innovative cross-sourcing delivery model. Clients partnering with Xpanxion are able to leverage the company’s onshore, offshore and rural sourcing capabilities to implement the most effective and efficient solution for their organization’s needs in such areas as Application Development, Maintenance, Quality Assurance and Business Process outsourcing. Representative Xpanxion clients include EarthLink, NCR, InterContinental Hotel Group, Oversight Systems, Inc., Goldleaf Financial Solutions, and others.

For more information please contact: www.xpanxion.com

August 2009 (Kearney, Nebraska) High-tech firm hiring in hot new field of software quality assurance

High-tech firm hiring in hot new field of software quality assurance

KEARNEY - A Nebraska software development and quality assurance company's vice president says his business is in the eye of a perfect storm.

The down U.S. economy still is driving some companies to seek lower-cost employees and services outside the United States. However, there's a growing acknowledgment of the language and cultural challenges of operating businesses in faraway time zones. And, as the recession puts more Americans out of work, there's a sentiment among some corporate leaders to keep jobs at home, said Eric Trettel, vice president of Nebraska operations for Xpanxion.

"We are occupying a pretty rare space in the middle," Trettel said about Xpanxion's corporate structure. "In the future, everyone will do it this way because it's ironed out the wrinkles at both ends of the spectrum."

Since Loup City native Paul Eurek founded Xpanxion in 1997, the company has maintained a stable of about 200 software developers in Pune, India.

Xpanxion complements its highly trained and skillful foreign staff with operations in Atlanta, Ga., Kearney and Loup City. Trettel said Xpanxion's American work force allows domestic clients to work with people who speak the same language and who understand how specialized software will help their companies and serve American customers.

With its Nebraska and Georgia operations, Xpanxion is within a half-day flight of most U.S. clients. Trettel said many of those companies prefer doing business onshore, not just because they can easily speak face to face with experts, but because of stringent U.S. guidelines for secure and confidential data transmission and storage.

So as Xpanxion taps its experts in India to develop software, counterparts in the United States are working closely with clients to install and iron out the kinks before the applications go into operation.

Trettel said ironing out the kinks - or quality assurance - once wasn't as critical as it is today. As business explodes on the Internet, companies gain instant exposure to millions of customers, so software and applications must operate correctly.

"Now, there is so much business technology facing the end consumer, 'QA' has just become a growing field because of that phenomenon," Trettel said.

Xpanxion's goal is to develop teams of U.S. quality assurance experts.

The good news: Demand is skyrocketing for such expertise.

The challenge: Finding the people to do it.

Xpanxion isn't recruiting just anyone to become a quality assurance expert. It is focusing on Nebraskans.

The company is working with the University of Nebraska at Kearney to develop coursework in quality assurance.

Fielding enough quality assurance experts is the pinch point in Xpanxion's business model, but Trettel said Eurek is committed to grooming Nebraska talent because of the state's work ethic and the skills of the employees he has hired so far.

"In a place like Loup City, we have people with great work ethic and skills with a great place to live and raise your kids," he said.

Additionally, Nebraska possesses technology infrastructure that exceeds what's in some urban centers. State-of-the-art fiber optics have served Kearney since the early 1990s.

"The 'pipe' going into our Loup City office, the old Carnegie Library, is pretty thick, so high-megabyte transmissions are possible," Trettel said.

State leaders are working to help Xpanxion succeed. Gov. Dave Heineman recently helped Xpanxion welcome a major prospect to Nebraska, Trettel said.

"Right up to the governor, we seem to have so many people who are so smart about technology and Nebraska's ability to meet technology demands," he said. "They get it."

Xpanxion began 2009 with 10 quality assurance experts, but that has grown to 18, and the company needs more.

Among Xpanxion's clients are Cox, Turner Communications, Coca-Cola, Holiday Inn and Earthlink.

"We have jobs for Nebraskans that are high tech, and they're right there where they want to live," Trettel said. "So, as Gov. Heineman says, 'Parents, tell your children.' The stuff we work on is really cool."

Xpanxion History

Loup City native Paul Eurek founded Xpanxion in 1997. After a stint with National Cash Register, he developed point-of-sales software for the restaurant and entertainment industries and then saw an opportunity for software development offshore. Today, Xpanxion employs about 200 software developers in Pune, India, and serves U.S. clients from headquarters in Atlanta, Ga., and centers in Kearney and Loup City.

Well-known Clients

Earthlink, Holiday Inn, Coca-Cola, Turner Communications, Cox

Nebraska hires

The 18-person roster of Xpanxion's Kearney and Loup City operations counts 14 graduates of Nebraska high schools:

  • Kearney, 3
  • Kearney Catholic, 1
  • Gibbon, 1
  • Elm Creek, 1
  • Lexington, 1
  • Ravenna, 1
  • Central City, 1
  • Loup City, 3
  • Alliance, 1
  • Lincoln Northeast, 1
  • Out-of-state, 4

August 2009 (Kearney, Nebraska) Giving Rural America a Competitive Edge

Giving Rural America a Competitive Edge

When 28-year-old Derek Gleim graduated as a computer programmer four years ago, he hardly expected he would craft a career as an IT professional in his hometown of Menasha, Wis. "I wanted to live with my parents in Menasha, where life is simple and inexpensive," he said. "But I was sure that to get that big break I had to move out to a city that's more urban; Menasha is a small, rural town."

He was pleasantly surprised when he landed a project manager job at Rural America Onshore Sourcing, a Louisville, Ky.-based IT company that provides business process outsourcing services using professionals who telecommute from rural areas.

"Aside from his capabilities, we could hire Derek because -- despite living in ‘Middle of Nowhere,' Wisconsin -- he had access to broadband," said Christopher Hytry Derrington, the company's CEO.

Gleim said he's lucky. Although a large section of rural Wisconsin still lacks broadband, he lives in a place that has it. "Broadband is making it possible to do what I want to do, by living where I want to live," he said.

As increasing broadband penetration brings remote and rural regions closer to the world, niche IT services firms, such as Rural America Onshore Sourcing and Xpanxion, are trying to build a sustainable model of rural outsourcing within the United States -- instead of sending IT projects and jobs overseas. Slowly the foundation of this "onshore" outsourcing is being built amid barns and ranches in rural America.

The $7.2 billion broadband push that's funded by this year's economic stimulus bill aims at two broad objectives: bridging the digital divide and job creation. However, a significant and positive side effect of building out broadband in rural districts -- where only 38 percent of citizens can afford broadband subscriptions, according to the Communications Workers of America -- is that rural America could better compete with the world.

"Over the last 15 years or so -- while regions like India, China, the Philippines and Eastern Europe took advantage of IT and back-office services outsourcing -- rural America was sitting back and just watching," said Paul Eurek, CEO and chairman of Xpanxion. "But with the playing field leveling out, access to broadband is suddenly giving rural America the ability and opportunity to compete in the multibillion-dollar IT outsourcing market. All that rural America needs is to grab a small piece of that to start with [in order] to have a huge impact."

Corporation Catch On

Corporate America has rediscovered its backyard too. Faced with the tough economy, U.S. companies increasingly favor onshore outsourcing. According to a recent survey conducted by accounting and consulting firm BDO Seidman, when asked which location they might consider for outsourcing in the future, participating chief financial officers most frequently cited the United States, China, India and the Philippines.

"It is purely about cost, not because anyone's more patriotic these days," said Don Jones, an international tax partner in Seidman's technology practice. "Maybe it's good news from a U.S. perspective."

Experts say that even though sending operations offshore might offer long-term cost benefits, many cash-strapped companies are deterred by the startup costs of implementing an offshore strategy.

That's partly the reason why the playing field is leveling out. But another big reason is that the global financial turmoil has decreased salary levels significantly, even in the U.S.

"American talents can be hired at a good price these days," said Hytry Derrington of Rural America. "I hire people with different capabilities with five to 15 years of experience for $20 an hour." That's still higher than wages in India, but Hytry Derrington said such rates are cheaper than the overall cost of using India, China or Eastern Europe outsourcing destinations. The hidden costs of communication barriers, travel expenses and quality control also must be added to the labor costs of foreign-based outsourcing.

Rural America Onshore Sourcing claims its model that employs lower-cost, rural-based professionals helps cut clients' project and labor costs by up to 40 percent, and saves them the trouble of sending projects offshore or using expensive vendors based in larger cities.

Rural broadband penetration is also changing the mindset of the American labor force. "If you go back 10 to 15 years, the major part of the back-office work was done domestically," said Stan Lepeak, managing director of global research for EquaTerra, an IT outsourcing consultancy. "Then it started to move offshore partly due to cost and partly because Americans were not willing to work in low-paying, back-office jobs. But with job losses and shrinking opportunities, there has been a reversal of that attitude lately. Since broadband is enabling people to work where they choose to work -- including from a rural setting -- more willing labor has become available."

Although some say broadband's ability to uplift rural America is undeniable, is it really a panacea for rural economies? After all, rural America's struggle started not with IT jobs moving out, but with the exodus of its manufacturing base. All that broadband can do is open avenues for knowledge workers, skeptics argue.

Hytry Derrington said those who believe broadband's reach is limited are incorrect. "I predict that there is going to be a seismic change in how we work once broadband is rolled out nationwide," he said.

In fact, according to Hytry Derrington, broadband could reverse a 150-year-old phenomenon -- people being forced to leave their homes to find work -- which began during the industrial revolution. "Broadband in every home can change that. People can leave the urban areas and go to the rural areas and build their businesses, [so they can] provide services, make products and compete worldwide from small communities," he said.

"Moreover, America is a nation of entrepreneurs," he added. "When the broadband stimulus plan for the U.S. is rolled out, you will find millions of entrepreneurial Americans opening up new businesses that provide new services and create jobs in every part of the country."

SIDEBAR

Onshore Outsourcing FAQ

Is outsourcing leveling out for rural America, and how much has the playing field leveled in terms of cost and talent vis-à-vis counties like India and the Philippines?

  • The playing field is starting to level out as broadband gets deployed.
  • U.S. talent that was previously unavailable now can work online from home.
  • The worldwide financial turmoil is making clients more cost-aware.
  • The cost differential is leveling. Labor costs, turnover rate and soft costs are increasing overseas.
  • Why is corporate America increasingly turning toward rural outsourcing? What benefits do they see from this shift?
  • Good talent, strong project management and years of experience still win out over cost alone.
  • The attractive price in a less risky environment adds to the appeal.
  • Why would IT outsourcing be an advantage for rural America?
  • It pays well and is challenging work. Furthermore, it doesn't require a change in lifestyle, no commute is required and it supports the new green economy. In general it costs 25 percent to 40 percent less to live it a rural community than an urban city.
  • There are cultural and language advantages over offshore talent.
  • What challenges still exist in rural America for it to be competitive with other regions of the world?
  • The biggest challenge still is the availability of skills, training, education for the work force, and its scalability.

The other challenge is educating customers that onshoring is an alternative to offshoring. There is a need to get the word out about onshoring and demonstrate to the client that together, process discipline and technology can make it happen.

February 2009 (Kearney, Nebraska) Xpanxion, LLC names Eric Trettel as General Manager for Xpanxion's Nebraska based Software Quality Assurance and Testing Centers.

Xpanxion, LLC names Eric Trettel as General Manager for Xpanxion's Nebraska based Software Quality Assurance and Testing Centers.

Xpanxion, LLC, an innovator in global software development announced today they have named Eric Trettel as General Manager for Xpanxion's Software Quality Assurance and Testing Centers located in Kearney and Loup City. Paul Eurek, founder and CEO of Xpanxion noted, "For businesses to survive in today's economy they need to think and act globally. They also need to hire world-class individuals to take on leadership roles within the company."

Eric is originally from Minnesota where he worked for Accenture. He moved his family to Nebraska where his wife grew up and where they wanted to raise their children. Eric most recently was the COO for Marshall Engines. "I am looking forward to helping Xpanxion grow. It is a perfect opportunity for me to add value to the company by leveraging my previous technology experience at Accenture and my recent senior management role at Marshall. I am confident it will be a challenging and rewarding experience," stated Mr. Trettel.

Since opening the Nebraska center in 2006, Xpanxion has signed contracts with both private and publicly traded companies that are enthusiastic about the high quality of workmanship delivered by the onshore teams in central Nebraska. "Although we were initially surprised when Xpanxion's management suggested Nebraska as the place for us to complete our product testing, it has turned out to be a very successful and vital addition to our software development practice," commented a senior executive of one of Xpanxion's corporate clients.

By taking advantage of the latest communication and Internet technologies, Xpanxion is able locate its virtual teams where they can offer the best combination of skills, pricing, and overall value. Xpanxion passes software designs and components from its office in Atlanta to its office in Pune India to its offices in Nebraska all in a matter of seconds as individuals in each office complete their part of designing, writing and testing clients' software applications.

"We are able to create jobs and put people to work across the globe," commented Mr. Eurek, "and at the same time, we create competitive value and accelerated time-to-market for our clients. Today we are experiencing a rapidly growing demand for our Nebraska QA services which is why we are truly fortunate to have someone of Eric's caliber and background join Xpanxion's leadership team. Eric's experience with Accenture will be perfectly aligned with the type of technology services we offer through our Nebraska offices."

Xpanxion is a US-based software engineering company founded in 1997, offering a comprehensive suite of development and QA services for companies large and small looking to optimize their software development projects. It's innovative cross-sourcing model combined with its proven processes has allowed it to set the industry standard for delivering value and quality to a long list of satisfied customers.

June 2008 (Pune, India)Pravin Mukhedkar received the First runner up award in the 4th Annual International Project Management Leadership Conference [PML 2008] held recently in Bangalore.

Pravin Mukhedkar received the First runner up award in the 4th Annual International Project Management Leadership Conference [PML 2008] held recently in Bangalore.

The 4th Annual International Project Management Leadership Conference [PML 2008] is a forum for exchanging, learning and accelerating implementation of best practices in the domain of Project Management. This conference was conducted by QAI (Quality Assurance Institute) Asia chapter.

Key Focus of the conference is on Project Management Tools, Techniques and Best Practices for achieving leadership. During the conference few selected best management practices have been discussed by people from different Organizations.

The first runner up position was awarded to Mukesh Jain (Microsoft) and Pravin Mukhedkar (Xpanxion) for their paper on "SCRUM Management: An Offshore Perspective". While commenting on the conference, Pravin says "@PML I have came across various Project Management experiences under one roof. No classroom training could have done this for me" and Mukesh says that "PML is the only forum I have seen that focuses on Innovation and Leadership in Project Management. It was an honor to present at this conference and we were excited to see the response we received for our presentation and delighted to received this award and recognition." LakshmiDevi from Wipro Technologies, while commenting on winning the second runners up position said that, "I value PML award as a great recognition from the entire PM community and tremendous motivation to achieve more."

The Project Management Conference 2008 had over 150 Author Intent submissions and a final of over 100 best practices and papers received from all across India. The three-member expert jury short listed these down to the best of 80 top papers. Further analysis and evaluation brought up the Top 18 papers - which were then chosen for presentation in this conference. The final countdown by a second jury panel narrowed the competition down to the Top 10 best papers which were announced at the Awards Night, out of which the best three got awarded.

Pravin Mukhedkar has discussed the offshore constraints while using SCRUM for project execution and the approach Xpanxion has taken to overcome those. He received the "First Runner Up" award for co-authoring the paper.