Not all companies are outsourcing their projects to foreign shores; some are just finding smaller markets to have them done. About 18 months ago after the negative side of outsourcing was becoming apparent, time difference, language and security, some companies began looking for US firms in non-traditional locations to do the work.
Many of these firms are in smaller markets. Think Milwaukee, Omaha, Denver and yes, even Duluth.
Star Tribune has an article today, Duluth firm: Why not outsource onshore?. With consulting firms charging $200 an hour on the coasts and $100 an hour in middle America the $50 an hour rates charged by these firms, while slightly more than India and elsewhere, allows for greater security and takes care of the language and time zone barriers.