In a scenario where the Indian outsourcing industry is still being viewed by some in the US as one of the reasons for the country's 'jobless recovery', Michingan-based start-up System In Motion (SIM) is all set to launch itself into the big league with promises of generating over 1,100 jobs over next five years.

Spearheaded by Debashish Sinha and Neeraj Gupta , the company is now working on an alternative that would appeal to many companies and the political establishment, says the Economic Times in a report.

SIM has already made public its plans to challenge the traditional offshore outsourcing market leaders by delivering low cost services from locations such as Ann Arbor. According to the company top brass, "with close to 30% unemployment rate in the region, for every Java programmer advertisement we put, there are around 100 applicants, with many of them having a decade's experience".

SIM's foray into the scene has spurred thoughts of more start-ups providing onshore services coming into the fray. It is also being seen that such a business scene will remain a niche are and would represent the ongoing evolution of outsourcing rather than indictment against offshore outsourcing. 

Smaller US firms have been attempting to build a sustainable rural outsourcing model in the US at a time when offshore locations such as India are facing a backlash and unemployment rates have touched an all-time high, it has been pointed out.

These small names, such as Xpanxion, are among among a handful of such firms seeking to create a more comfortable and cost-effective alternative to offshore outsourcing. 

Meanwhile, SIM is hoping that potential outsourcers with less than $2 billion in revenues and with around $7-8 million outsourcing budgets may instead want to keep the jobs within US. 

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