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Publishing BPO Trends: 2008
Pune, India; 15th January 2008
Updates
Offshoring of publishing services to India continues to grow, both horizontally and vertically.
Research Reports
New "horizontal" niches and opportunities across hitherto untapped segments of publishing
Recruiting Companies & Job Portals
are opening up as vendors develop vertical capabilities across the publishing value chain.
We expect that the increasing activity witnessed in the publishing outsourcing space will be Call Center Training
sustained during 2008. A few of the key trends for the publishing outsourcing industry in BPO December 2010 News
2008, are presented below: Events
Maturity in STM… towards comprehensive, "managed" projects BPO lags behind IT sector
Knowledge Base
The Indian publishing BPO services began with providing services for the STM segment,
BPO November 2010 News
where significant maturity has been built over the last decade. Having attained strong
delivery capabilities, domain knowledge, automation and experience in a range of News Archives
composition and editorial services, year 2008 will mark greater traction towards offshoring BPO October 2010 News
"project management services" in the STM segment. We believe that rising vendor Mergers & Acquisitions in BPO World
capabilities and existing relationships will drive increasing comfort levels amongst clients, in BPO September 2010 News
offshoring these high-value services, which provide tremendous cost-saving potential.
And Let Your Hairs Wave in the Air
This is coincident with the trend of vendors offering end-to-end services and managing the Fresher in the Market
entire project or projects, as opposed to project management being controlled by the client. Professional Suicide II – The Conversation
Educational segment opens up new vistas
The offshore opportunity for STM/Academic segment is estimated to be $1.72 billion by
2011 and that for Educational publishing at around $4 billion. While sizeable opportunity in Orange County, Kabini
STM still exists, relatively higher penetration and limited scope for content development in Misty Meadows, Coorg
this segment has led vendors to look at related markets. Educational publishing segment Swaswara, Gokarna
River View, Mangalore
especially the "Elhi" space has a lot of small publishers (buyers) apart from the big four. This
Swarga, Sakleshpur
throws up multiple opportunities for innovative multimedia content development in this space. King's sanctuary, Nagarhole
This will open up vistas not just for the existing large publishing vendors, but also for newer
Contact PRIYA »
players contemplating entry.
+91-80-6565 3333
New opportunities
Apart from diversifying horizontally and adding service lines, vendors will look beyond STM
and Educational publishing segments, to facilitate vertical expansion. Legal publishing will
emerge as a focus area for some large and established vendors. New entrants as well as
existing vendors will tap "other" opportunities in segments like newspapers, yellow pages,
magazines and B2B publishing. Servicing pre-media needs of corporates and the advertising
segment will also gain traction in 2008. The existing vendors will be driven towards these
segments to stretch their existing capabilities, while new entrants will look to service
relatively untapped opportunities.
Spreading Global Footprint: Not just for marketing but also for delivery
As US-based BPOs find it difficult to survive offshore competition and Indian vendors look to
expand, acquisitions and partnerships between the two will continue to be a strong trend.
While acquisitions by Indian vendors are primarily driven by the need to strengthen
marketing presence and niche capabilities; in 2008 and beyond we will see vendors
spreading not just marketing presence but also offshore delivery beyond India.
Currently, global publishing offshoring is dominated by India. The global delivery model
involving multiple offshore destinations to mitigate geographical risks and currency risks is
beginning to take shape in the publishing BPO space. Destinations like Vietnam, China,
Philippines, Mauritius and Sri Lanka are set to emerge as supplementary destinations for
offering publishing services. Some of the data conversion tasks once handled from India will
now increasingly be sourced from these destinations, as Indian offshoring moves up the
value chain. SPi is already leading this trend, and this will gain traction as vendors battle the
appreciating rupee, rising salaries, attrition and other challenges on the Indian shores.
Consolidation and fragmentation will go hand in hand
The publishing industry is consolidating with several publishing BPOs evoking significant
interest from buyers. In the next couple of years, several exits of investors or entrepreneurs,
either by way of listing or acquisitions are likely.
However, while the industry consolidates, low barriers to entry in this business means there
is a continuous influx of new vendors - typically at the low end, or in emerging niches. There
are a large number of small publishers in the US and UK and some of these have just begun
experimenting with offshoring, thus keeping the small and new BPOs in business. For every
large player, there are an estimated 10-15 small players offering services (primarily
conversion) usually at very low billing rates. While these small vendors compete amongst
each other, they serve a useful function in the supply chain as low-cost sub-contractors to
large vendors. In addition, niche providers, especially in the "hot" educational publishing
space will continue to set up shop and help expand the market.
So even as consolidation picks up pace, and the large vendors get larger, smaller vendors
will continue to proliferate. The explosion of new service providers will create further
fragmentation, making it an equally strong trend as consolidation.
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across the globe we have significant understanding of international markets.
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