Indian outsourcing horizon expands to Advertising functions; 80% growth foreseen

It is an undoubted fact that India still rules the global outsourcing industry and the new trend of global ad agencies outsourcing advertising functions to India, will definitely add to its charm. The upcoming buzz in the industry is that global advertising agencies are outsourcing their various activities either to their in-house subsidiaries or to partner firms in India. What attracts ad agencies to outsource their operations are the cost and operational efficiencies offered by the Indian market.

Advertising Outsourcing

Advertising Outsourcing. Source

As per the Industry estimates the size of advertising outsourcing, i.e. including the outsourcing of services like creative, planning, digital creation and execution, data analysis, production and animation  would be around Rs 1000 crore.  It also suggests that, digital and search engine marketing holds the major share i.e. 70-80%, and this is expected to grow further. The industry experts foresee a growth rate of 80-90% in the future.

The ad agencies found that they were able to save up to 30-40% by outsourcing their various activities to India. Thanks to the factors like expertise in information technology, English speaking skills of people in India, ability to scale up operations, low cost and high turn around model of Indian outsourcing market have helped them to achieve considerable savings.

FMG, a New York based media agency specialized in print, digital and marketing services claimed that by outsourcing activities to their in-house hub in Chennai and Bangalore they can now enable clients to experiment with ideas at much lesser cost structures. According to various sources, FMG was able to bill their clients 20-30% less for the works done in India when compared to the same amount of work done in their home location.

Creative outsourcing like generating original idea for the campaigns, original print and television media campaigns or digital campaigns have not found enough space in the outsourcing  market like the back end works of the campaigns. This means that creative works are still being done outside India. However, a trend is seen where a campaign developed for Indian market is getting acceptance from for global clients for global markets too. Minute Maid campaign developed by Leo Burnett for Indian market can be cited as an example. The ad for the juice brand owned by Coca-Cola was adapted for the US market, which was recognition for the agency’s Indian team.

Further, it is also seen that, ads originally created by Indian teams find their space in the global market when parent Ad Company sends a brief description of the creative work required for its partners spread across different geographic locations. This helps the agency to make the best out of their talented resources and an opportunity to get their work recognized globally.

The Indian advertising and outsourcing industry are very much optimistic that the days are not far away when the global clients will recognize and acknowledge the creative expertise of Indians too. It is expected that more players will come forward to set up their creative headquarters in India like Lenovo, which has set up its headquarters of marketing services in Bangalore.

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