(Fortune Magazine) — It would be easy to imagine Reno, Ohio, as the type of place that would be hit hardest by outsourcing – a small American town losing out to the invisible hand shifting jobs to places like Bangalore and Guangzhou. Instead, outsourcing is bringing the jobs to Reno. Across the street from an Army Reserve center and next to a farm, a customer-service call center hums, its 250 workers answering phones for online travel agency Expedia. The center’s owner? Indian conglomerate Tata Group.
The phenomenon has a name: “insourcing,” the term experts are starting to use when foreign multinationals open offices on U.S. soil and hire Americans, at a higher price, to do the very jobs they once lured overseas. In this case the center in Reno is targeted toward companies willing to pay a premium – its workers there cost up to 40 percent more than their counterparts in India – to give their U.S. customers a more culturally fluent, less frustrating 1-800 experience. (No more hearing someone read from a script ten time zones away.)