Graphic design firms to gain $120 m from offshoring

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‘This year and next will be tough for IT & BPO’

Pune, Sep 12 : Indian graphic designing firms may benefit from the UK and the US newspaper industry and can gain up to $ 120 million by 2012 as these nations are looking at offshoring work to other countries as part of their cost cutting measures.

Substantial drop in the advertisement revenue of newspapers in the US and the UK due to tremendous increase in on-line ads, has led to significant job-cut in the industry, as it tries to rationalise operations with outsourcing options, a study by research company ValueNotes Database study has said.

Indian firms operating in graphic design sector and BPOs in publication segment stand to gain nearly $ 35 million in 2008, out of the estimated $ 3.5 billion newspaper outsourcing market, and the share could go up to $ 120 million by 2012, according to the findings based on interviews with leading vendors. Foreign newspapers appear more inclined to outsourcing advertising production services to India among various cost overheads that are being curtailed owing to reduced margins, ValueNotes analyst Aradhana Kolhatkar said.

Presently, India’s share in this emerging segment is about 1 %, with limited number of service providers.

Once the players in graphic design sector and publishing BPOs focus on this opportunity and acquire required skills, volume of outsourcing business could cross the $ 100-million mark in a couple of years, the findings suggest.