Creative Process Outsourcing – The New Buzz Word

The Indian advertising industry is valued at about Rs 17,000 crore and is growing about 20 per cent a year. Today the situation of Indian advertising agency is similar to that of the business process outsourcing industry in the information technology sector a decade ago. Initially, the software talent and cost differential available in India were attractive but costs went up as the sector progressed in India.

Catching up with the growing trend of outsroucing, some specialised agencies, such as Eon Premedia and Basil, have sprung up in India. Publicis India, the country’s sixth largest advertising agency by revenue, is planning to set up an outsourcing division to cash in on the offshoring trend. Moreover the significantly higher margins of the business and a growing demand in the developed countries for Indian creative work, the leading agencies such as Lowe, McCann Erickson, Ogilvy & Mather and Mudra, are mulling over outsourcing operations.

According to industry estimates, agency commissions in India are about 15 per cent, whereas margins in outsourcing work are as high as 30 to 40 per cent. Outsourcing in India could cut costs for clients by as high as 50 to 70 per cent. The outsourcing units would consist of a 24×7 studio or a set of studios that could deliver content with a faster turnaround time and comparatively lesser costs like in the IT BPO sector.

Anyone listening!