Former Corporate Exec Promotes Rural Outsourcing
Wednesday, Aug 25, 2004
By Wesley Brown
Arkansas News Bureau
LITTLE ROCK – A former chief information officer at a Fortune 500 company told Rotary Club members here Tuesday that
not only are U.S. manufacturing jobs moving overseas, but so is technology-related work.
Kathy Brittain White, former CIO of Cardinal Health Inc., said that if something is not done soon to stop the
flow of IT jobs overseas, the results will be devastating.
“If something is not done in 10 years, every technology job (in the U.S.) will be overseas,” said White, who
was named to Forbes magazine’s Top 25 America’s Businesswomen in 2001. “That is a scary concept.”
According to the International Data Corp., the global market for outsourcing will grow at an annual rate of
7 percent to hit $1.2 trillion by 2007.
Relocating work from Europe and the United States to countries such as India and Pakistan is cutting costs
for global firms by up to 40 percent, the study showed.
Another study by Deloitte Research in 2003 indicated that the world’s 100 largest financial services companies
expect to transfer an estimated $356 billion of their operations and two million jobs offshore over the next five
years in efforts to significantly reduce costs.
The survey found that each of the 100 financial institutions expects to reduce costs by an average $1.4 billion
by 2008 by sending work to low-cost centers like India from the developed economies in North America, Europe,
and Asia.
White, an alumni of Arkansas State University, recently created a new company in Jonesboro called Rural Sourcing
Inc., which is working to attract companies seeking IT consulting work to rural communities.
A nonprofit arm of the company is working with ASU and Southern Arkansas University at Magnolia to train
students at those colleges for technology-related careers.
The for-profit part of the corporation is now actively seeking to bring some of those jobs back to rural
communities in the U.S., White said.
She added that the company has already started negotiations with companies in Chicago and Hawaii. Currently,
it has 12 employees at its corporate office in Jonesboro.
“We can’t continue to have the brain drain,” White said. “We educate our people. They have nowhere to work and they
leave the state.”
“That is how we are going to win, by bringing IT jobs en masse to Arkansas,” said White, who donated a $2 million
gift to ASU’s College of Business to establish the Horizon Institute of Technology two years ago.
Rural
Sourcing, Inc. Incorporates to Bring Technology Employment to Arkansas
Goal
is to secure multiple clients creating a substantial number of jobs
in rural Arkansas areas by December 2004
February
20, 2003 Jonesboro, Arkansas
“Rural
Sourcing, Inc. (RSI) is a non-profit organization that was created as
a result of a statewide initiative to bring economic expansion and high
technology employment opportunities to Arkansas while supporting workforce
diversity,” says ARS president and chairman of the board, Kathy
Brittain White. According to White, many talented graduates of programs
such as information technology, computer engineering, and computer science
from around the state must leave the area to obtain desirable employment.
“With the best and the brightest leaving, rural areas are left
to their eventual, imminent decline. At the same time, metropolitan
areas are becoming over-crowded resulting in scarce housing and a strained
service infrastructure,” said White.
Numerous
universities, technical programs, and community colleges around the
state are actively partnering and collaborating with Arkansas Rural
Sourcing to produce highly qualified technology employees that will
have the opportunity for meaningful employment, regardless of their
address.
RSI has
appointed Henry Torres as director of the organization. Mr. Torres explains
that by using the global outsourcing model that has shown employees
can produce high-quality work remotely, RSI offers a talented technology
employee population at a very competitive cost. A recent survey by Mercer
Human Resource Consulting in New York confirms the low cost of doing
business in Little Rock, Arkansas—more than 30% below a metropolitan
area such as San Francisco, California. Operating expenses can be even
further reduced when employees are located in Arkansas’ rural
areas. Additionally, there is a much lower organizational risk factor
when doing business domestically in similar legal and social environments.
“The compelling benefits to companies outsourcing information
technology jobs offshore exist in Arkansas,” according to Atul
Vashistha, founder and chief executive officer of neoIT, Incorporated
and Arkansas Rural Sourcing board member.
“Our
model of ‘best sourcing’ - high quality, cost competitive,
low risk - combined with the stated objective of supporting economic
expansion and workforce diversity make ARS the best domestic sourcing
option,” said Torres.
RSI operates
on a multi-tiered approach to technology consisting of various service
channels commissioned to provide sustainable improvement in the rural
economic community. Each channel can be customized and is scalable to
meet the needs of our clients and constituents. ARS has designed these
channels to be replicable by the use of proven industry techniques coupled
with the ARS Technology Transfer Model. The organization is funded by
both public and private sources and led by a seven member board of directors
who represent industry, education, and economic development leaders.
As we move
ever closer to a global community, Rural Sourcing, Inc. envisions rural
communities in which
•
Individuals can achieve economic independence by working in jobs related
to their field that pay livable wages and provide opportunities for
growth, training, and advancement.
•
Information technology and computer science program graduates have the
option to live in the area of their choice and have high technology
employment opportunities.
•
Local economies are fully assimilated into the global economy through
creative and collaborative uses of technology.
•
Professionals choosing to return to rural settings where the quality
of life is consistently rated as excellent and desirable have the opportunity
for meaningful employment.
“Strong
local leadership and innovative partnerships with national leaders in
industry will allow rural communities to charter their own global future
as participants in a world-wide economy,” adds White.
To learn
more about rsi you may visit www.ruralsource.org or contact Kathy Brittain
White, president and chairman of the board, at whitekathyb@nc.rr.com,
or Henry Torres, Director at htorres@ruralsource.org or call 870-910-8184.
Mattel
chief speaks at A-State
Story Date: 3/19/2004 11:50:45 PM
By Anthony Childress
Information technology is
key to educational and professional success for students in places like
Northeast Arkansas, the chairman and chief executive officer of Mattel
Inc. said Friday morning.
Robert Eckert and other officials
with the world's largest toy manufacturer flew to Jonesboro to speak
at the Arkansas State University Fowler Center as part of the second
annual Executive Speaker Series.
Eckert, a Missouri native,
said he came in part to support the school's role in creating the Horizon
Institute of Technology, which focuses on support of education, information
technology employment and economic expansion.
"There is no question
information technology has made an impact on our industry. We have a
strong presence on the Internet through Web sites pertaining to our
products," Eckert said.
Mattel, headquartered in
suburban Los Angeles, owns Scrabble, Uno, Fisher Price, Barbie, Hot
Wheels, Matchbox and Tyco RC -- a toy car maker which is unaffiliated
with Tyco, the Bermuda-based manufacturing company whose former CEO
is accused of corporate looting.
Mattel employs 25,000 people
in 36 countries. The company licenses entertainment through companies
like Disney, Warner Bros. and Viacom's Nickelodeon for products which
include Harry Potter, Sesame Street, Winnie the Pooh and Superman.
Eckert said the emergence
of online sites devoted to Mattel brand-name toys have enjoyed unimagined
success. And he attributed a large share of it to having trained professionals
who specialize in dispensing information through technological training.
Horizon was founded in 2002
by Kathy Brittain White, president and chairman of the board for Arkansas
Rural Sourcing Inc. It works as a nonprofit organization charged with
developing information technology job opportunities in rural communities.
"What we're all about
is connecting young people with employment in the IT field through outreach
initiatives in the Arkansas Delta," White said.
The institute provides a
virtual internship program at ASU, Southern Arkansas University in Camden
and the University of Arkansas at Monticello.
"These programs allow
students to work with Fortune 500 companies on business projects as
part-time paid employees without leaving campus," White explained.
"The program at SAU won a top national award recognizing the unique
and creative characteristics of the partnerships."
To this point, more than
100 students from all three schools have participated in the effort.
A new business technology
center is slated to open in Jonesboro at ASU this fall using partial
funding from Horizon and the university. White said it would set up
a technology infrastructure and bolster training and employment options,
keeping rural areas and smaller urban centers from continuing "brain
drain."
Eckert said it was important
to understand what information technology brings to the table in terms
of offering people a chance to be trained, educated and hired to fill
technology-driven jobs close to home.
"Technology is clearly
driving our business and has a very bright future," Eckert said.
"I'm proud to be here today to talk about having a mechanism in
place like Arkansas Rural Sourcing for keeping technology jobs (at)
home or creating new ones at home."
To that end, he said efforts
to set up technology networking for young people and others in the state
were smart moves.
"The support of the
Horizon Institute means a great deal because it's about kids and giving
them the tools to look at IT as a career choice," Eckert said.
Dr.
Kathy Brittain White Enhances Technology Outreach at Arkansas State
University with a $2 Million Gift
Arkansas State University
alumna Dr. Kathy Brittain White will present the ASU College of Business
with a $2 million gift to establish the Horizon Institute of Technology.
The gift will enable the
College of Business to be the catalyst in bringing technology and advancement
to the students and residents of the Arkansas Delta, according to Mark
Young, director of the Institute.
The Horizon Institute of
Technology will expand technology education at the university in both
undergraduates and graduate programs. It will also provide additional
technology education opportunities for secondary education teachers
who are laying the foundation for students who represent the future
workforce.
Business and industry will
also benefit from the Horizon Institute of Technology. The Institute
will focus on providing solutions and increasing productivity.
"Arkansas State University
is in a unique position here in the Delta," White said. "The
university will make a tremendous difference in the lives of students
and residents by bridging the digital divide through this outreach program."
Dr. Jan Duggar, dean of the
College of Business, said, "What makes this gift unique is that
Dr. White is not only giving a monetary gift but is also giving a gift
of her time and expertise. Dr. White will continue to provide vision
by serving on and chairing the Board of Directors of the Horizon Institute
of Technology."
White received her bachelor's
degree from ASU in 1977. She continues to support the university through
this endeavor, and past support includes the establishment of the Virtual
Internship Program with Cardinal Healthcare, the Kathy Brittain White
Fellowship in Management Information Systems, and the White Computer
Lab at ASU-Mountain Home.
In making this gift to ASU,
White says she has had an opportunity to reflect on her time spent as
an undergraduate at Arkansas State University. "ASU was an incredibly
supportive environment for me, both financially and through the faculty"
she said.
"The faculty's personal
involvement and encouragement gave me a vision of more; that I could
go to graduate school and pursue my career goals."
That vision of doing more
is consistent with White's vision of the Horizon Institute. White expects
the Horizon Institute of Technology to challenge and inspire people
to believe they are capable of more than they think. "One person
believing that they are capable of more can change everything. I want
to make a difference one life at a time."
White is executive vice president
and chief information officer for Cardinal Health, a company currently
ranked 23rd on the Fortune 500 list. The long-time advocate for advancement
in technology serves on the Boards of Directors for Mattel, Inc., and
Certegy, Inc. She was named to Forbes magazine's Top 25 America's Businesswomen
2001 list and was also named one of the top CIOs in the United States
by Information Week magazine in 1997.
Mattel
looking to build in educational toys.
18 March 2004
LITTLE ROCK, Ark., March 18 (Reuters) - The head of Mattel Inc. (MAT.N)
said on Thursday the No. 1 toymaker is looking to educational toys to
help its bottom line, and for Barbie dolls to perform well in a competitive
market.
"The toy business is
fairly mature in the U.S. It grows modestly. But within the toy business
over the last four or five year, an area with expansive growth has been
educational toys," Mattel's Chief Executive Robert Eckert said
in an interview.
In February of this year,
El Segundo, California-based Mattel's Fisher-Price division said it
will roll out its biggest line yet of educational toys and Eckert said
the toys will be aimed at categories such as infants, babies, preschool
youths and early readers.
Eckert said the company is
looking for good results in the electronic learning area of toys and
will try to build market share there, as well as in other platforms
for educational toys.
With sales of about $2.8
billion a year, according to Port Washington, New York marketing information
group NPD, educational toys account for about 15 percent of the overall
toy business.
For the fourth quarter, worldwide
gross sales for the Mattel brands unit grew 2 percent to $1.07 billion,
but Barbie brand sales slid 5 percent, and 25 percent domestically.
"We've had more competition
in the doll business than we've had in several years," Eckert said.
"Barbie is going to do fine."
Mattel is modernizing Barbie
for 2004 by piercing her ears, giving her trendy clothing like Ugg boots,
and hiring some new people to manage the brand.
Eckert said that
Barbie fans can give their opinion on a pressing topic for lovers of
the toy icon. They will be given a chance to vote online to see if Barbie
will get back together with her long-time, plastic pal Ken.
Kathy
Brittain White to Speak at Girls of Promise Conference
LITTLE ROCK, AR: Dr. Kathy
Brittain White, founder of the Horizon Institute of Technology, will
be the keynote speaker at Arkansas State University’s first Girls
of Promise Conference, to be held at the ASU Convocation Center on Saturday,
April 17.
The conference is one of
the Women’s Foundation of Arkansas’ key programs, and is
made possible through grant from ASU’s Horizon Institute of Technology.
Additional sponsors this year are Wal Mart, Morgan Stanley, SCB, East-Harding,
and the design center of Little Rock.
The Girls of Promise Conference
has been held for the past five years on the UALR campus and has hosted
more than 770 girls since 2000. This year the conference is being expanded
to include Arkansas State University at Jonesboro, and Southern Arkansas
University in Magnolia. The addition of two more sites will allow an
additional 100 girls to participate this year, for a total of 260 at
the three locations. The conference’s extension to two more campuses
is made possible through grants from Dr. Kathy Brittain White and Arkansas
State’s Horizon Institute of Technology.
This annual spring event
helps 8th grade girls explore careers in fields related to math, science,
and technology and provides them with information about required high
school courses in these areas. The conference also gives them the opportunity
to meet with and hear presentations by women scientists, physicians,
computer systems engineers, and others from various organizations and
businesses in Arkansas. Teachers travel with the girls to the conference,
and also spend the day in workshops with respected math, science, and
technology educators and counselors and receive continuing education
credit. Parents who register girls are also welcome to attend the sessions.
This free, day-long
conference is always a popular event and participants come from every
corner of the state. Girls who have shown promise in math, science and
technology may participate if recommended by their teachers or parents.
Anyone wishing to register a girl for the conference should contact
the Women’s Foundation of Arkansas office at 501-244-9740.
ASU
grad sees rural Arkansas as corporate outsourcing post
Friday, Mar 19, 2004
By Wesley Brown
Arkansas News Bureau
LITTLE ROCK - Many people are now recognizing the efforts of the University
of Arkansas' Genesis Technology Incubator to diversify the state's technology
and economic base, but not many are aware of similar efforts in the
other corner of state.
Kathy Brittain White,
former chief information officer at Cardinal Health Inc., believes that
bringing technology to the students and residents of the Arkansas Delta
is one way to help the region economically and educationally.
White put her money
where her mouth was nearly two years ago when she gave Arkansas State
University's College of Business in Jonesboro a $2 million gift to establish
the Horizon Institute of Technology.
The institute's
mission is to expand technology education at the university in both
undergraduate and graduate programs.
"Arkansas State
University is in a unique position here in the Delta," White said
when the think tank was unveiled in September 2002. "(ASU) will
make a tremendous difference in the lives of students and residents
by bridging the digital divide through this outreach program."
Already, the institute
has started "virtual internship" programs at three Delta colleges:
ASU, Southern Arkansas University at Magnolia, and the University of
Arkansas at Monticello. That program allows students to work on business
projects part-time without leaving their campuses.
The institute also
works with secondary education teachers who provide their students with
technology-related curriculums.
"One person
believing that they are capable of more can change everything,"
White said.
The former Fortune
500 executive is also the driving force behind a recently announced
statewide effort to keep top technology minds at home.
Last month, Arkansas
Rural Sourcing Inc. was created to bring economic expansion and hi-tech
jobs to often overlooked areas of the state, similar to what the Genesis
program is doing in Northwest Arkansas.
The seven-person
board that oversees the nonprofit group includes corporate executives
and leading Arkansas educators, including University of Arkansas President
B. Alan Sugg and SAU President and economist David Rankin.
According to White,
many talented Arkansas graduates of programs such as information technology,
computer engineering and computer science must leave the state to find
good-paying jobs.
"With the best
and the brightest leaving, rural areas are left to their eventual, imminent
decline," said White, who sits on the corporate boards of Mattel
Inc. and Certegy Inc.
And that represents
a double whammy against Arkansas and especially the Delta, which has
seen thousands of blue-collar jobs transferred overseas.
At the same time,
many U.S. corporations are outsourcing technology-related jobs to such
countries as India, China and Pakistan. Instead of those white-collar
jobs going overseas, ARS envisions bringing many of those positions
back to rural America.
The group's biggest
selling point is that doing business in Arkansas is substantially cheaper
than any other place in the U.S., including other "tech valleys"
at San Francisco and Austin, Texas.
According to neoIT
Inc. CEO Atul Vashistha, who sits on the ARS board, rural Arkansas also
provides U.S. corporations with fewer legal and labor risk factors than
doing business overseas.
"Our model
... combined with the stated objective of supporting economic expansion
and work force diversity make ARS the best domestic sourcing option,"
said Henry Torres, a former Wal-Mart executive who was recently hired
as ARS' new director.
Meanwhile, this
weekend, Mattel Chairman and CEO Robert Eckert was invited to the ASU
campus by the Horizon Institute to speak on the crucial role of leadership
and information technology in a company's success. White, who was named
to Forbes magazine's Top 25 America's Businesswomen 2001 list, sees
this as the beginning of something big.
"Strong local
leadership and innovative partnerships with national leaders in industry
will allow rural communities to charter their own global future as participants
in a worldwide economy," White says.