Report: Outsourcing Revisited

As economic challenges escalate for newspaper companies, many are seeking new ways to reduce costs, create efficiencies and earn new revenues.

by Anton Jolkovski anton.jolkovski@wan-ifra.org | March 12, 2009

WAN-IFRA_Outsourcing_Revisited

Newspaper companies have found that outsourcing various company functions can save an estimated 10 percent to 50 percent of in-house costs. If the outsourcing partnership is well-managed, it can produce as good or better results in quality and efficiency than if the functions remain in-house, according to publishers surveyed and interviewed for this report.

According to the 2009 World Association of Newspapers’ Outsourcing Survey, most publishers focused on two main objectives when engaging in outsourcing: cost savings and their core competencies, typically defined as editorial and advertising.

A popular theme resounded in the survey and follow-up interviews: Newspapers must focus on their core competencies of advertising and editorial in-house, and many of the rest of the company functions can be outsourced cost-effectively if these situations are managed well.