Outsourcing Media Processes for Business
While journalism is traditionally associated with newspapers, mass media encompasses all forms of communication that reach large numbers of people in a short time, including radio, television, film, magazines, books, comics, billboards, signs, public speaking, events, websites and mobile applications. Publishing houses and television stations are examples of organizations that control these technologies. And just like other profit-driven enterprises, they want to boost revenue while reducing costs. And they also want to engage and expand their audience by providing excellent services.
Outsourcing is one way to realize these goals while making the most of existing resources. Outsourcing remains a hot-button issue, particularly in the media where many jobs have been lost to offshore workers. Yet media organizations continue to outsource non-core and routine work because it can mean the difference between staying afloat and going out of business.
Media Process Outsourcing (MPO)
Media process outsourcing refers to media services that companies subcontract to local, near-shore or offshore providers. Just like business process outsourcing (BPO), the main drivers of MPO are cost savings and availability of skilled workers. Third party experts and MPO providers can make information and content dissemination more efficient and cost-effective.
In 2007, the global media and entertainment industry was estimated to be worth US$1.62 trillion and was expected to have grown 7.5 percent (CAGR) by 2010. The United States accounted for the largest market share (about $720 billion in 2010), but growth was relatively slow in this region compared to emerging countries in Asia like India and China (Opportunities in Media & Entertainment Process Outsourcing, Tholons 2007).
Tholons reported that the publishing segment (magazines, newspapers, books) had the highest spending on outsourcing at 33 percent, followed by television (25 percent), cinema (17 percent), music (8 percent), theme parks/gambling (8 percent), gaming (5 percent), and radio (4 percent). Most of the services being outsourced by companies are costly and require specialized skills and software, like 3D modeling, visual effects and DVD authoring. By offshoring these services, companies are not only reducing costs, but also improving product/service quality and speed to market.
Some commonly outsourced media services include:
Content development for print media, websites and mobile applications. Content creation, copywriting and editing are some of the most commonly outsourced media services. Content development includes marketing materials, press releases, and brochures. For websites and apps, there is a great demand for well-written, engaging content that is search engine optimized. Third party providers provide content development at significantly reduced costs and also undertake high-volume work.
Video editing, graphics, and animation. Subtitling, video editing, graphics and animation are creative media services that are increasingly being outsourced in order to reduce costs. Hiring creative professionals offshore or partnering with a creative agency mean big savings because the company avoids having to recruit, train and support full-time employees.
Media audit reporting. A media audit is a multimedia survey that generates statistical information about audiences for radio and TV programs, newspapers, magazines, websites, social media and mobile. This type of audit is used to define customer profiles, quality of audiences and other characteristics. Reporting can be outsourced to third parties with domain expertise and the latest technology.
Benefits of Media Outsourcing for Businesses
Small, medium and large media companies use outsourcing not only to reduce costs but also to improve process efficiency, increase profitability and productivity, and provide exceptional services.
Streamlined processes. Third parties do the heavy lifting and deliver exactly what the business needs. With access to domain experts and advanced technology and systems, outsourced service providers can streamline workflows and boost efficiency.
Reliable and timely service. Experienced media outsourcing companies know the ins and outs of running a news or publishing business, ensuring that timelines are consistently met.
Improved profitability. Partnering with the right media outsourcing provider can increase margins and even create new revenue opportunities.
Low cost, high-quality services. Offshore media outsourcing maximizes cost savings while keeping service quality high. Professionals in preferred outsourcing locations like the Philippines have the skills and experience to deliver first class media services.
Please contact us to find out about Sourcefit’s custom media outsourcing solutions.