In Rural Missouri, an IT Outsourcing Company Challenges India

Can information technology services companies located in rural areas in the U.S. compete with lower-priced counterparts offshore? Shane Mayes is betting they can. The 37-year-old founder of Onshore Technology Services says his 70-person business, which teaches software development skills to former manufacturing workers in small towns in Missouri, had $5 million in revenue last year, expects $10 million this year, and plans to hire an additional 70 employees in 2011. Mayes, who founded Onshore in 2004, spoke with Bloomberg.com Entrepreneurs editor Nick Leiber about his company’s training program, pricing strategy, and plans to expand to 1,000 employees. Edited excerpts of their conversations follow.

Nick Leiber: Most people don’t think of the U.S. as a great place to locate outsourcing services; can you describe your approach to the business?