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Outsourcing and the Publishing Industry

by: Karen Cayamanda

Saturday, January 16, 2010 | Outsourcing News |

Outsourcing in the Publishing Industry

Outsourcing is not a new phase in the publishing industry, but many publishing companies are still not open to the idea of transferring some of their operations to external providers. After all, outsourcing is a risky business. It can be the ideal solution for companies that want to stay competitive and cut costs. However, for many publishers, there is usually a need to check the quality of outsourced processes in-house. Also, in an industry that follows tight schedules, rework and/or delay in meeting the requirements will have an impact on the overall process of the company. These are some of the reasons why outsourcing is not always favored by the industry.

To know more about the situation and the challenges being faced by the industry, ValueNotes, a leading provider of business intelligence and research, conducted the Publishing Survey 2009-2010 among buyers and vendors in the publishing industry. Specifically, the survey aims to determine the publishers’ perception of outsourcing, publishing operations that they outsource, and their satisfaction levels.

Key findings include:

• Cost pressures and lack of in-house capabilities are drivers for outsourcing.
• Sixty-four percent (64%) of respondents said they still have faith in their service providers and they will continue outsourcing.
• Content and production are the publishing operations that are usually outsourced/in demand.
• Sixty-six percent (66%) of buyers choose India as the outsourcing location.
• When it comes to cost savings, buyers achieve/are aiming to get 15-25 percent, while providers perceive 25-40 percent.
• More than 75 percent of buyers think considerable improvement is required in outsourcing, while 16 percent do not approve of outsourcing.

Shifting work to a service provider results to reduced costs and allows publishers to focus on core competencies and experiment with new products and offerings, but like what the survey findings indicate, the entire outsourcing process must first be improved before it can be considered a crucial strategy for the industry.

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