A new study by data center project site selection consultancy The Boyd Company says that because it is cheaper to do business in the heartland of America than in pricey urban centers on or near the Pacific and Atlantic Coast, it makes sense for businesses seeking to reduce payroll to consider moving IT jobs to less expensive U.S. metropolitan areas.
Information Week’s Darrell Dunn notes that Boyd Company consultant John Boyd (hmm, family business, perhaps?) says that according to the study, “it costs 45% more to run a similar-sized facility with like-sized staff in New York than Sioux Falls, S.D. A Web security manager in San Francisco will cost you $152,000, but only $122,000 in San Antonio, Texas.
“A data security analyst manager in Albuquerque, N.M., can be had for $100,000. In Boston, the position pays $119,000,” Dunn adds, noting the Boyd study as a source.
These numbers really add up when multiplied by payroll for a large IT workforce.
Dunn correctly notes that “when faced with a data center project that will require 50 or more midlevel engineers and analysts, the difference between spending $7 million a year to staff a 125,000 sq. ft. data center in Chicago and $5.6 million for the same-sized staff in Sioux Falls, S.D., will have to be considered.”
Not only that, but utilities, taxes and travel are cheaper in the heartland. And because of heartland cities’ centralized locations midway between the two coasts, overall travel costs can be less for those companies who may have the need to send prospects, customers, or even the ITs themselves to or from these locations.