NEW DELHI, JAN 22: Indian advertising outsourcing business is facing a serious threat from countries like China, Philippines, Malaysia, Singapore, South Africa and Australia.
According to a paper brought out by Assocham, these countries are all geared up to take away a major chunk of advertisement outsourcing business from India. In a paper titled Outsourcing in Advertising: Is India the Destination Next?’ the global advertising outsourcing business is estimated to be around $ 280 billion, of which $ 50 billion is estimated to be in creative and production moneys.
Releasing the paper, Assocham president Anil K Agarwal said that these countries offer a sound infrastructure and a single window clearance to entertain outsourcing advertisement calls from all part of the globe. Whereas in India, policy makers have yet to evolve a mechanism to take a call to accept outsourcing business opportunities.
Estimates reveal that during 2004-05, the Indian advertising industry spent $ 5 billion of foreign exchange in travelling abroad to shoot films, the job which could have been accomplished in India. Mr Agarwal said that this happened because the industry faced hassles in obtaining permission to shoot in certain locations.
In countries like China, Philippines, Malaysia, Singapore, South Africa and Australia the film makers are quickly given permission for shooting and even subsidies are extended to undertake the job and this is one major reason that these nations are becoming an attractive destination for outsourcing advertisement assignments.
Assocham, recommends a slew of proposals to make India a attractive destination and center for receiving contacts for advertisement outsourcing. These recommendations, which will be submitted to the government, includes adoption of a process driven approach to give higher confidence to the international customer regarding India.
Members should come together with a common vision of selling India’s collective capability in the international market rather than the agencies’ individual capabilities.
The government should create a single-window clearance to enable advertisers to outsource their business and also reduce import duties to promote the imports of equipment needed to manufacture cameras that are effective and cost competitive.
To promote the industry, the paper has suggested that events should be organised where international delegates can share their experiences with the Indian advertising industry.
