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Geographic Arbitrage

While discussing with Greg Gianforte, founder of RightNow – it became evident how up and coming high tech companies are using “Geographic Arbitrage” to their advantage. This has happened before in the Call Center industry – including US – where call centers started popping up in the small towns keeping the operating cost structure down.

Maturity of the technologies and competitive environment is helping the same trend support more high tech ventures in remote, small town that are close to universities. It support the cost structure needed but also provide work-life balance desired by the talent pool – stimulating the economy of small towns. RightNow, a successful, up and growing, hi-tech SaaS venture started out in Bozeman, Montana – a town probably many people may not have heard. It is a key employer in Bozeman and contributor to the local town growth.

In some sense – similar reasons that benefit an outsource operation several time zones away are being applied to the small town tech ventures in closer time zones.

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