Just imagine an American reading a daily newspaper cover story written from India by an Indian. It might seem to be odd for the American reader to hear this, but it is certainly good news for Indian outsourcing industry. Some of the newspaper leaders like Reuters in US are planning to outsource their editorial work to India and other outsourcing markets like Canada and Singapore.
Outsourcing editorial works to other countries is not a new concept. Many publishers like Time Warner, CNET, and Integra have experienced success by outsourcing their editorial works. Recently there was news about two regional newspapers in Australia deciding to outsource their editorial works to New Zealand. In 2007, some of the UK dailies had also announced outsourcing of their editorial works to India and bring down the number of its journalist staff in the home location. They also outsourced their online editorial support works to Bangalore.
Thanks to the popularity of web and internet technologies that put the US publishing industry under pressure to consider the possibilities of outsourcing their editorial works, this news has brought cheers to countries like India. The leaders in the industry believe that this measure would, to some extent, save them from revenue loss due to losing readership to electronic media.
Top most reasons that drive newspapers business to adopt outsourcing are:
- Increasing competition from internet media
- Raising circulations of other newspapers.
- Increase in newsprint costs.
- Reduction in ad revenues.
- Increasing demand of journalists to raise their earnings.
Other main reason is the advantages that offshore destinations offer. The vast pool of talented and educated people, English speaking and writing skills and the reputed history of Indian journalism make India a suitable destination for these newspapers to outsource their editorial works. As always discussed, availability of economical manpower in India and other outsourcing markets can also be cited as a reason for the outsourcing decision.
However, the outsourcing decision of the newspapers has outraged the journalist community in US. They claim that, by outsourcing, the newspaper companies are moving away from their obligation of creating jobs in the US market. Some of them find that outsourcing not only harms the journalists but also the readers and clients of the newspaper companies. They are of the opinion that this trend will change the course of journalism to be a remote controlled job and will result in cheaper news quality.
As far as newspaper companies are concerned, they have no other option to cut down the spiraling costs and save their business than to outsource some of the editorial work. Many of the leaders feel that newspapers should consider outsourcing their works as the industry is witnessing a shrinkage in the revenue generated.