The immense opportunity awaits Indian newspaper publishers, graphic companies and publishing Business Process Outsourcing to grab a slice of $3.5 billion newspapers outsourcing market by providing a services to a newspapers in the US and the UK. The offshoring is set to grow as pressure mounts on the US newspaper industry which has been battling growing margin pressures in the last few years. The decreasing advertising revenues, the growth of the Internet and rising newsprint prices have contributed to the downward trend in margins. A business intelligence and the research company in its research report Offshoring by the US newspapers Publishers. This is to understand the opportunities for the buyers and vendors in the newspaper-publishing sector.
Currently, the offshoring has been initiated by tier 1 newspapers publishers in the US and it is largely limited to the advertising production services. As the service providers mature, they believe that tier 2 and tier 3 publishers will also send work to India. From the measures like reducing the global coverage, cutting edition sizes, streamlining resources and the cutting excess jobs, the several leading newspapers companies are evaluating offshoring options. There has been an increasing trend of the US-based newspaper publisher offshoring services to India. The trend has been an increasing trend of the US-based newspapers publishers offshoring services to India., The trend is set to gain the traction in the next years. The value notes outsourcing practice has estimated India’s share of the market at $35 million in 2008.
By 2012, the current Indian penetration into the market stands at around 1 percent. They estimate the revenues to grow to $ 120 million and manpower to grow to over 5,500. From India, among the various cost overheads of a newspapers publisher most of the services can be outsourced. The offshoring provides a maximum leverage for the advertising production services since it is an easier to provide from India. Several tier 1 newspaper publishers are already outsourcing some part of their advertising production to India. The offshore vendor landscape is at a nascent stage with only a handful of service providers in India actively focusing on the newspapers segment.
The traditional publishing Business Process Outsourcing, the Indian graphic design firms and newspaper publishers are well poised to grab the opportunity, but they will need to tool themselves with the new skill sets to service global newspapers publisher.
REFERENCE:
http://www.financialexpress.com/news/us-newspapers-plan-to-outsource-to-indian-publishers/358516/1
