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Shaping the Future of the Newspaper                                                                      STRATEGY REPORT
A...
Shaping
 the Future
of the Newspaper




 www.wan-press.org
 A WORLD ASSOCIATION OF NEWSPAPERS PROJECT,
 SUPPORTED BY WORL...
VOLUME 8 REPORT N° 3 OUTSOURCING REVISITED




TABLE OF CONTENTS

    Executive Summary                                   ...
MARCH 2009 SHAPING THE FUTURE OF THE NEWSPAPER




4
VOLUME 8 REPORT N° 3 OUTSOURCING REVISITED




Executive Summary

As economic challenges escalate for                devel...
MARCH 2009 SHAPING THE FUTURE OF THE NEWSPAPER




functions that are ripe for outsourcing and        owned subsidiaries, ...
VOLUME 8 REPORT N° 3 OUTSOURCING REVISITED




Introduction

Newspaper companies around the world are           Why Outsou...
MARCH 2009 SHAPING THE FUTURE OF THE NEWSPAPER




“The key reporters and editors that create         not a silver bullet....
VOLUME 8 REPORT N° 3 OUTSOURCING REVISITED




1. 2009 WAN Outsourcing Survey

The World Association of Newspapers
conduct...
MARCH 2009 SHAPING THE FUTURE OF THE NEWSPAPER




                                                    Outsourcing Level
 ...
VOLUME 8 REPORT N° 3 OUTSOURCING REVISITED




                              Offshore Outsourcing Level by Function
      ...
MARCH 2009 SHAPING THE FUTURE OF THE NEWSPAPER




                                                                  FACTO...
VOLUME 8 REPORT N° 3 OUTSOURCING REVISITED




Cheaper labour costs was listed as the biggest                   Administra...
MARCH 2009 SHAPING THE FUTURE OF THE NEWSPAPER




To break down by region, the survey found
that in Europe, Asia, Latin A...
VOLUME 8 REPORT N° 3 OUTSOURCING REVISITED




       Most Important Reasons                                              ...
MARCH 2009 SHAPING THE FUTURE OF THE NEWSPAPER




POST-OUTSOURCING PERFORMANCE                                          O...
VOLUME 8 REPORT N° 3 OUTSOURCING REVISITED




DECISION MAKING FOR NOT
OUTSOURCING                                        ...
MARCH 2009 SHAPING THE FUTURE OF THE NEWSPAPER




POST-OUTSOURCING PERFORMANCE                                           ...
VOLUME 8 REPORT N° 3 OUTSOURCING REVISITED




DECISION MAKING FOR NOT OUTSOURCING                        has improved, wh...
MARCH 2009 SHAPING THE FUTURE OF THE NEWSPAPER




                                                                       ...
VOLUME 8 REPORT N° 3 OUTSOURCING REVISITED




DECISION MAKING FOR NOT
OUTSOURCING                                        ...
MARCH 2009 SHAPING THE FUTURE OF THE NEWSPAPER




POST-OUTSOURCING PERFORMANCE                                           ...
VOLUME 8 REPORT N° 3 OUTSOURCING REVISITED




        Most Important Reasons                                             ...
Доклад SFN 8.3. -  Возвращение к аутсорсингу / Outsourcing Revisited
Доклад SFN 8.3. -  Возвращение к аутсорсингу / Outsourcing Revisited
Доклад SFN 8.3. -  Возвращение к аутсорсингу / Outsourcing Revisited
Доклад SFN 8.3. -  Возвращение к аутсорсингу / Outsourcing Revisited
Доклад SFN 8.3. -  Возвращение к аутсорсингу / Outsourcing Revisited
Доклад SFN 8.3. -  Возвращение к аутсорсингу / Outsourcing Revisited
Доклад SFN 8.3. -  Возвращение к аутсорсингу / Outsourcing Revisited
Доклад SFN 8.3. -  Возвращение к аутсорсингу / Outsourcing Revisited
Доклад SFN 8.3. -  Возвращение к аутсорсингу / Outsourcing Revisited
Доклад SFN 8.3. -  Возвращение к аутсорсингу / Outsourcing Revisited
Доклад SFN 8.3. -  Возвращение к аутсорсингу / Outsourcing Revisited
Доклад SFN 8.3. -  Возвращение к аутсорсингу / Outsourcing Revisited
Доклад SFN 8.3. -  Возвращение к аутсорсингу / Outsourcing Revisited
Доклад SFN 8.3. -  Возвращение к аутсорсингу / Outsourcing Revisited
Доклад SFN 8.3. -  Возвращение к аутсорсингу / Outsourcing Revisited
Доклад SFN 8.3. -  Возвращение к аутсорсингу / Outsourcing Revisited
Доклад SFN 8.3. -  Возвращение к аутсорсингу / Outsourcing Revisited
Доклад SFN 8.3. -  Возвращение к аутсорсингу / Outsourcing Revisited
Доклад SFN 8.3. -  Возвращение к аутсорсингу / Outsourcing Revisited
Доклад SFN 8.3. -  Возвращение к аутсорсингу / Outsourcing Revisited
Доклад SFN 8.3. -  Возвращение к аутсорсингу / Outsourcing Revisited
Доклад SFN 8.3. -  Возвращение к аутсорсингу / Outsourcing Revisited
Доклад SFN 8.3. -  Возвращение к аутсорсингу / Outsourcing Revisited
Доклад SFN 8.3. -  Возвращение к аутсорсингу / Outsourcing Revisited
Доклад SFN 8.3. -  Возвращение к аутсорсингу / Outsourcing Revisited
Доклад SFN 8.3. -  Возвращение к аутсорсингу / Outsourcing Revisited
Доклад SFN 8.3. -  Возвращение к аутсорсингу / Outsourcing Revisited
Доклад SFN 8.3. -  Возвращение к аутсорсингу / Outsourcing Revisited
Доклад SFN 8.3. -  Возвращение к аутсорсингу / Outsourcing Revisited
Доклад SFN 8.3. -  Возвращение к аутсорсингу / Outsourcing Revisited
Доклад SFN 8.3. -  Возвращение к аутсорсингу / Outsourcing Revisited
Доклад SFN 8.3. -  Возвращение к аутсорсингу / Outsourcing Revisited
Доклад SFN 8.3. -  Возвращение к аутсорсингу / Outsourcing Revisited
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Transcript of "Доклад SFN 8.3. - Возвращение к аутсорсингу / Outsourcing Revisited "

  1. 1. Shaping the Future of the Newspaper STRATEGY REPORT ANALYSING STRATEGIC DEVELOPMENTS AND OPPORTUNITIES IN THE PRESS INDUSTRY Volume 8 N°3 MARCH 2009 © WAN 8.3 Outsourcing In a challenging economy, newspaper companies around the world have implemented Revisited outsourcing and offshoring strategies across the value chain in order to reduce costs, realise process efficiencies and focus on core competencies www.futureofthenewspaper.com All the strategy reports are available to WAN members and subscribers at the SFN Web site
  2. 2. Shaping the Future of the Newspaper www.wan-press.org A WORLD ASSOCIATION OF NEWSPAPERS PROJECT, SUPPORTED BY WORLD LEADING BUSINESS PARTNERS www.atex.com/ THE LEADING SUPPLIER OF SOLUTIONS AND SERVICES FOR DIGITAL, ADVERTISING, CONTENT MANAGEMENT AND SUBSCRIPTION APPLICATIONS. www.man-roland.com/en/p0001/index.jsp A LEADING COMPANY FOR NEWSPAPER PRODUCTION SYSTEMS www.telenor.com/ THE LEADING NORWEGIAN TELECOMMUNICATIONS, IT AND MEDIA GROUP www.norskeskog.com/ A WORLD LEADING PRODUCER OF NEWSPRINT AND MAGAZINE PAPER, WITH 18 PAPER MILLS AROUND THE WORLD © WORLD ASSOCIATION OF NEWSPAPERS, 2009
  3. 3. VOLUME 8 REPORT N° 3 OUTSOURCING REVISITED TABLE OF CONTENTS Executive Summary 5 Introduction 7 1 2009 WAN Outsourcing Survey 9 Accounting Function 11 Administration Function 13 Advertising Function 15 Circulation Function 17 Customer Service Function 19 Editorial Function 21 Human Resources Function 23 IT Function 25 Printing Function 27 2 Why Newspapers Outsource 29 Survey Respondents Discuss Outsourcing Measures 29 ValueNotes Research 32 3 How Newspapers Manage Outsourcing 37 The Miami Herald 37 Firsthand Account: Sub-Editor Prepares to Offshore Job 40 RCS Quotidiani S.p.A. 41 Tips from Newspapers on Outsourcing and Offshoring 41 4 Outsourcers Discuss Their Businesses 43 Advertising, Design and Artwork 43 Tips from Outsourcing and Offshoring Companies 45 Editorial 48 Outsourced Printing 50 Conclusion 53 3
  4. 4. MARCH 2009 SHAPING THE FUTURE OF THE NEWSPAPER 4
  5. 5. VOLUME 8 REPORT N° 3 OUTSOURCING REVISITED Executive Summary As economic challenges escalate for developed in 1990 by Gary Hamel and C.K. newspaper companies, many are seeking new Prahalad, starts the strategic process at the ways to reduce costs, create efficiencies and centre of the company’s core strengths, with a earn new revenues. Newspaper companies higher quality, at a lower cost and faster than have found that outsourcing various company their competitors. functions can save an estimated 10 percent to In most categories, the 2009 survey findings 50 percent of in-house costs. If the outsourcing mirrored the results of the 2005 WAN partnership is well-managed, it can produce as Outsourcing Survey, with circulation, IT and good or better results in quality and efficiency printing being the most popular departments to than if the functions remain in-house, outsource either partially or fully in both according to publishers surveyed and surveys. Between 50 and 60 percent of the interviewed for this report. 2009 respondents said they fully or partially outsource these departments. According to the 2009 World Association of Newspapers’ Outsourcing Survey, most The least likely department to be outsourced is publishers focused on two main objectives editorial, with 52.5 percent of the respondents when engaging in outsourcing: cost savings saying they had no plans to outsource editorial and their core competencies, typically defined functions, the same percentage as in 2005. But, as editorial and advertising. A popular theme as a slew of editorial and advertising resounded in the survey and follow-up outsourcing companies emerge both interviews: Newspapers must focus on their domestically and abroad, the world’s core competencies of advertising and editorial newspaper companies are experimenting in in-house, and many of the rest of the company outsourcing functions that do not fall under the functions can be outsourced cost-effectively if all-important categories of gathering news and these situations are managed well. selling advertising. The “Core Competence” business model, These ancillary advertising and editorial 5
  6. 6. MARCH 2009 SHAPING THE FUTURE OF THE NEWSPAPER functions that are ripe for outsourcing and owned subsidiaries, designed to focus on offshoring are typically administratively and excellence in each competency, but with technically focused, such as ad production and separate budgets and with contractual ties to call centres for the ad departments, and page the mother ship. Subsidiaries that serve as makeup, sub-editing, listings compilation and outsourcers are particularly common among online forum moderation in the editorial larger media companies and multi-national departments. newspaper companies. While offshoring is by far less popular than “The primary reason for outsourcing our domestic outsourcing, the editorial and activities was our company strategy with its advertising departments are the most likely focus on the core business. The other reasons functions to be offshored. According to the were cost-related through better utilisation of 2009 survey, respondents said 28.6 percent of the (parent) group resources, but also to enable their editorial outsourcing is offshored, while better focus for the outsourced companies and 27 percent of their advertising outsourcing was development of core competencies, further on offshored. – more transparent structure and internal This report details five of the most prominent relations,” said a respondent from a 100,000 offshoring companies for advertising and circulation newspaper in Eastern Europe, editorial, with production centres in India, the which saves 20 percent of its total costs on Philippines, Australia and the United States. outsourcing six of its key departments to These expanding businesses, many of which companies owned by its parent company didn’t exist in 2005, may be part of the reason within its country’s borders. for the uptick in outsourcing and offshoring in Sound advice from both outsourcing advertising and editorial departments. companies and the publishers that hire them is Respondents who had no plans to outsource published in this report. Among the many tips advertising functions fell from 47 percent to are: 42.4 percent from 2005 to 2009. • Create a thorough analysis of each Compared with the 2005 outsourcing survey, department’s process and identify which printing and IT continue to be among the most functions would be appropriate to outsource. outsourced departments in responding newspaper companies, and growing. In 2005, • New roles must be created when adding 52 percent of the respondents partially or fully outsourced functions to any company, outsourced IT, or were planning to do so including in-house project manager. within two years, compared with 64.5 percent • Check references of the vendor, and in 2009. Regarding printing, those respondents thoroughly review a vendor's progress in the who either partially or fully outsourced first months of the contract. printing rose from 52 percent to 56 percent • Make sure the vendor offers business from 2005 to 2009. continuity. Do they have data backup? Will A variety of case studies are featured in the they still be able to operate and provide the report, including the outsourcing practices of service if a problem develops? the Miami Herald in the United States (editorial), RCS Quotidiani S.p.A. in Italy • Visit the facility. “You can tell the minute (prepress, IT and printing) and News you walk in what you're going to get.” International’s Newsprinters plant in the • Understand the company's finances. Find out United Kingdom (printing), as well as a who owns the company, and whether they are variety of outsourcing anecdotes from media sustainable. companies that did not wish to be identified. • Top management must buy into the Among the objectives for outsourcing include outsourcing concept, and support those who the important goals to improve quality, are carrying out the outsourcing strategy. efficiency, speed and know-how in the company. • There must be clear benchmarks and a broad agreement on how the project will scale up. Respondents report an interesting outsourcing theme: the domestic outsourcing of key departments within the company to wholly- 6
  7. 7. VOLUME 8 REPORT N° 3 OUTSOURCING REVISITED Introduction Newspaper companies around the world are Why Outsource? facing a preternatural challenge: audiences are expanding, but revenues are contracting. As As the road to outsourcing becomes more readers migrated to the Internet and ad travelled, newspaper companies are finding revenues dwindled along with a sickly global that not only does outsourcing help them economy, newspapers increasingly sought new achieve savings and limit expenses, it also ways to make their budgets stretch, all while allows for greater flexibility to experiment maintaining the quality levels in their content. with new revenue streams in today's dynamic At first, many newspaper executives and their environment. But most importantly, staff felt outsourcing was a betrayal of their outsourcing done right allows them to focus on own business, wanting to keep all functions in- and strengthen core competencies. house. But as times got tougher, the industry “Look at what makes you unique, what brings reached a tipping point, and the road to value, and outsource the rest,” said Robert outsourcing began. Berkeley, CEO of offshoring company Express KCS. Today, although outsourcing is nowhere near a Respondents to the 2009 World Association of point of saturation, it is in current or future Newspapers Outsourcing Survey said the business plans of most newspapers. ability to focus more on their core business ValueNotes Research, for example, estimates was the main reason to outsource non-core the current opportunity to provide offshore functions. services to the newspaper industry in the United Kingdom and United States alone is Common functions or departments to about US$3.5 billion. Offshore vendor outsource include accounting, administration, revenues in India are currently valued at $35 circulation, customer service, IT and printing, million – just 1 percent of the total the survey found, while those less likely to be opportunity. outsourced were advertising and editorial. 7
  8. 8. MARCH 2009 SHAPING THE FUTURE OF THE NEWSPAPER “The key reporters and editors that create not a silver bullet. One European newspaper content are exclusive and unique to us, so we executive pointed out that although had to identify these areas where we thought outsourcing creates opportunity to gain more we could achieve some savings that didn't control, reduce costs and reshape departments, impact that more sophisticated news it also comes with new challenges to be met. gathering,” said Rick Hirsch, multimedia In-house, existing employees must work with editor of the Miami Herald, which has four the outsourcer as if the work was still internal. ongoing projects with India-based Mindworks “This is still your business and you are still Global Media Services. responsible,” the executive said, whether that “I think in the environment we're in, you really work is done in-house, in another city or need to check out what possible alternatives around the world. are. Again, the goal is to make sure we can do Several respondents to WAN's survey said they investigative reporting and cover local news, learned early on how important it is to define so if there are experiments you can do to tasks in outsourcers' contracts, as hiring bolster those resources and save costs someone outside the company makes it elsewhere, we want to try them.” necessary to clearly define the scope of services, yearly outlay and cost controls in the Cutting Costs contract. When an industry must reduce its operating When it comes to offshoring, one of the most costs, it becomes ripe for outsourcing. common challenges is “bridging the cultural Currently, the newspaper industry in many divide – a key factor for the newspaper countries is at a point in which “everyone industry that thrives on its ability to connect climbs on the band wagon,” said Ken with the masses,” according to ValueNotes. Swanson, CEO of offshoring company Affinity Express. “In the last two years (newspaper This means that while functions such as ad outsourcing) went from experimentation, and imaging, content management and pagination they kind of had a choice, to 'we have no have high offshore potential, functions such as choice. We have to do this, and do it right ad ideation, copy editing and copy writing away. Forget experimentation, it's part of our have low potential for offshoring success, the strategy.'” report states. Functions that go outside learned skill sets, such as design or digitisation, and To understand how costs might be cut through venture into areas that require knowledge and outsourcing or offshoring a function, Swanson understanding of local culture are more advises clients think of cost in three ways: difficult, as they cannot be taught. 1. Direct costs: Everything associated with that function. Achieving Long-Term Success 2. Indirect costs: The building, equipment, utilities, human resources, etc. The impetus to outsource is nearly always 3. Activity: Labour, time and resources related financial, but along the way, outsourcing can to the function. For example, managers needed lead to efficiencies in other areas and position to oversee that department, time it takes to newspapers to better compete in an plan that function in a meeting, etc. increasingly crowded information marketplace. “For a typical newspaper publishing operation, the direct costs form approximately 81 percent “Newspapers are beginning to see there is a of the total costs. Amongst the direct cost trade-off, and they need to protect their heads, production constitutes 34 percent of the investments and refocus on creating unique key cost components,” ValueNotes Research and compelling content,” said Tony Joseph, states in ch. 2. CEO and co-founder of offshoring company Mindworks Global Media Services. “We believe all (cost-cutting) solutions, in some Lessons Learned places have diminished newspapers, in a time Newspapers incorporating outsourcing into when the core should be strengthened – and their business plans are finding that that core is compelling and unique local outsourcing is a piece of the strategy puzzle, content.” 8
  9. 9. VOLUME 8 REPORT N° 3 OUTSOURCING REVISITED 1. 2009 WAN Outsourcing Survey The World Association of Newspapers conducted an online survey from November Survey Responses by Region 2008 to February 2009, aimed at Total responses: 59 understanding the outsourcing and offshoring Latin efforts in different functions of newspaper America North 10.2% publishing companies around the world, America including: 23.7% 6 14 • Levels of outsourcing • Performance measurement post outsourcing • Decision making for outsourcing or not outsourcing Africa 3 5.1% 23 Europe Among the 59 respondents who completed 39.0% the survey, 39 percent are from Europe, 23 11 percent are from North America and 18 percent are from the Asia Pacific region. Asia 2 Another 10 percent came from Latin 18.6% Australasia America, while only about 5 percent and less 3.4% than 3.5 percent are from Africa and Source: WAN Outsourcing Survey 2009 © World Association of Newspapers 2008-2009 Australasia, respectively. According to the survey, IT, printing and partially or fully. The lowest levels of circulation are the functions with the highest outsourcing went to accounting and editorial outsourcing levels, with more than half of the functions, with more than 50 percent of the companies outsourcing those functions responding companies not outsourcing them. 9
  10. 10. MARCH 2009 SHAPING THE FUTURE OF THE NEWSPAPER Outsourcing Level Fully Partially Will be outsourced Will be outsourced in the No plans Don't know/NA outsourced outsourced within next two years future; but no timeline yet Accounting 5.08 20.34 6.78 8.47 54.24 5.08 Administration 5.08 44.07 3.39 3.39 40.68 3.39 Advertising 3.39 38.98 1.69 8.47 42.37 5.08 Circulation 8.47 45.76 5.08 5.08 27.12 8.47 8.47 Customer service 6.78 27.12 6.78 5.08 47.46 6.78 Editorial 35.59 1.69 5.08 52.54 5.08 HR 3.39 32.20 8.47 49.15 6.78 IT 5.08 55.93 3.39 11.86 20.34 3.39 Printing 25.42 30.51 1.69 6.78 32.20 3.39 % 0 10 20 30 40 50 60 70 80 90 100 Source: WAN Outsourcing Survey 2009 © World Association of Newspapers 2008-2009 The most satisfactory post-outsourcing The majority of companies still chose not to performance measurement went to editorial – offshore across functions. However, more than half of the companies said the companies named advertising, circulation, quality and efficiency of outsourced editorial customer service, editorial and IT as work has improved. More than 50 percent said functions they are more likely to offshore – efficiency has improved on administration, at least two out of 10 said they have advertising and printing functions after offshored those functions either fully or outsourcing. partially. However, less than one-fourth said the quality of circulation and customer service has improved after outsourcing, according to the survey. Percentage of Companies with Improved Performance after Outsourcing 39.10 Accounting Quality 47.80 Efficiency 40.00 Administration 53.30 40.00 Advertising 53.30 21.60 Circulation 40.50 23.80 Customer service 47.60 52.20 Editorial 60.90 33.30 HR 42.90 IT 35.10 43.20 37.10 Printing 51.40 % 0 10 20 30 40 50 60 70 Source: WAN Outsourcing Survey 2009 © World Association of Newspapers 2008-2009 10
  11. 11. VOLUME 8 REPORT N° 3 OUTSOURCING REVISITED Offshore Outsourcing Level by Function Yes, totally offshore Yes, partially offshore No Don’t know/NA Accounting 3.60 7.10 78.60 10.70 Administration 11.80 79.40 8.80 Advertising 2.70 27.00 67.60 2.70 Circulation 2.30 18.60 72.10 7.00 Customer service 10.00 10.00 70.00 10.00 Editorial 3.60 28.60 64.30 3.60 HR 11.50 80.80 7.70 IT 21.30 68.10 10.60 Printing 10.00 87.50 2.50 % 0 20 40 60 80 100 Source: WAN Outsourcing Survey 2009 © World Association of Newspapers 2008-2009 Accounting Function OUTSOURCING LEVEL Of all the respondents, more than half said To break down by region, the survey shows at they have not and do not plan to outsource least half the respondents across all regions accounting work, while more than 20 do not outsource accounting. In Asia, more percent have already partially outsourced than 35 percent partially outsource the accounting. accounting function. Outsourcing Level: Accounting Function by Region Africa Asia Australasia Europe Latin America North America Fully outsourced count 0 0 0 3 0 0 % of all companies in the same region 0% 0% 0% 13% 0% 0% Partially outsourced count 0 4 0 5 1 2 % of all companies in the same region 0% 36% 0% 22% 17% 14% Will be outsourced within next two years count 0 0 1 1 0 2 % of all companies in the same region 0% 0% 50% 4% 0% 14% Will be outsourced in the future; but no timeline yet count 1 0 0 2 1 1 % of all companies in the same region 33% 0% 0% 9% 17% 7% No plans count 2 6 1 12 4 7 % of all companies in the same region 67% 55% 50% 52% 67% 50% Don't know/NA count 0 1 0 0 0 2 % of all companies in the same region 0% 9% 0% 0% 0% 14% Source: WAN Outsourcing Survey 2009 © World Association of Newspapers 2008-2009 11
  12. 12. MARCH 2009 SHAPING THE FUTURE OF THE NEWSPAPER FACTORS LEADING TO OUTSOURCING Outsourcing Level: The most popular accounting functions Accounting Function outsourced by the responding companies include Don't know/NA recording, classifying and summarising financial Fully 5.08% outsourced information, interpreting the financial results and 5.08% invoicing and receipting. Cost savings was the 3 3 Partially main factor in the decision making process on outsourced 20.34% whether to outsource accounting, followed by being able to focus on core competency. Lack 12 of in-house expertise and sharing risks are No considered less important factors, according to plans 32 54.24% the WAN outsourcing survey. 4 Will be outsourced within next Most Important Reasons 5 two years for Outsourcing Will be 6.78% the Accounting Function outsourced in the future; (5-point scale, 1 means least important, but no timeline yet and 5 means most important) 8.47% Source: WAN Outsourcing Survey 2009 Sharing Risks 1.79 © World Association of Newspapers 2008-2009 Lack of In-House 2.48 Expertise Quality POST-OUTSOURCING PERFORMANCE Improvement 2.96 MEASUREMENT Focus on Core 3.50 Competency Among the companies that have partially or Cost Savings 4.07 fully outsourced the accounting function, more 0 1 2 3 4 5 than 55 percent said the performance has Source: WAN Outsourcing Survey 2009 remained the same in terms of quality, while © World Association of Newspapers 2008-2009 nearly 40 percent said it has improved after outsourcing. Four percent said it has deteriorated. OFFSHORE VS. ONSHORE/DOMESTIC OUTSOURCING In terms of efficiency, 47.8 percent of Nearly four out of five companies that respondents said performance has remained outsourced accounting did so domestically. the same or improved. Only 7 percent partially offshored the function, while another 3 percent did so completely offshore. After outsourcing, has the performance of the accounting function in your Is the outsourcing of the company improved, deteriorated, accounting function offshore? Yes, or remained the same totally Don’t know/ in terms of quality and efficiency? offshore NA 3.60% 10.70% % Yes, 60 Quality partially Efficiency offshore 56.5 50 7.10% 47.8 47.8 40 39.1 30 20 10 No 0 4.3 0.0 0.0 4.3 78.60% Deteriorated Remained Improved N/A the same Source: WAN Outsourcing Survey 2009 Source: WAN Outsourcing Survey 2009 © World Association of Newspapers 2008-2009 © World Association of Newspapers 2008-2009 12
  13. 13. VOLUME 8 REPORT N° 3 OUTSOURCING REVISITED Cheaper labour costs was listed as the biggest Administration Function reason to offshore the function, as opposed to outsourcing it domestically. OUTSOURCING LEVEL DECISION MAKING FOR NOT About 45 percent of respondents partially OUTSOURCING outsourced the administration function at their publications, while another 40 percent did not The companies that decided to not outsource outsource or plan to do so at all. Only about 5 any part of accounting said they made their percent fully outsourced the administration decision based on existing adequate in-house function. expertise. Other top factors include a loss of control, as well as the cost to outsource would be too expensive. Outsourcing Level: Administration Function Don't Most Important Reasons know/NA Fully 3.39% outsourced for Not Outsourcing 5.08% the Accounting Function 2 3 (5-point scale, 1 means least important, and 5 means most important) No plans 40.68% 24 Adequate In-House 4.02 Expertise Loss of Control 3.49 26 Too Expensive 3.14 Partially Political outsourced Sensitivities 2.51 44.07% 2 2 Organisation 2.33 Will be Resistance outsourced Lack of in the future; Will be Outsourcing 2.33 but no outsourced Experience timeline yet within next 3.39% two years 0 1 2 3 4 5 3.39% Source: WAN Outsourcing Survey 2009 Source: WAN Outsourcing Survey 2009 © World Association of Newspapers 2008-2009 © World Association of Newspapers 2008-2009 Outsourcing Level: Administration Function by Region Africa Asia Australasia Europe Latin America North America Fully outsourced count 0 0 0 3 0 0 % of all companies in the same region 0% 0% 0% 13% 0% 0% Partially outsourced count 1 6 0 9 3 7 % of all companies in the same region 33% 55% 0% 39% 50% 50% Will be outsourced within next two years count 0 0 0 2 0 0 % of all companies in the same region 0% 0% 0% 9% 0% 0% Will be outsourced in the future; but no timeline yet count 1 1 0 0 0 0 % of all companies in the same region 33% 9% 0% 0% 0% 0% No plans count 1 3 2 9 3 6 % of all companies in the same region 33% 27% 100% 39% 50% 43% Don't know/NA count 0 1 0 0 0 1 % of all companies in the same region 0% 9% 0% 0% 0% 7% Source: WAN Outsourcing Survey 2009 © World Association of Newspapers 2008-2009 13
  14. 14. MARCH 2009 SHAPING THE FUTURE OF THE NEWSPAPER To break down by region, the survey found that in Europe, Asia, Latin America and Most Important Reasons North America, the outsourcing level of for Outsourcing administrative functions were especially high the Administration Function – at least half of respondents from these (5-point scale, 1 means least important, regions said they partially or even fully and 5 means most important) outsourced the function. Focus on Core Competency 4.24 POST-OUTSOURCING PERFORMANCE MEASUREMENT Cost Savings 4.09 More than half the companies that Quality Improvement 3.56 outsourced administrative work said the Lack of In-House efficiency has been improved after 3.38 Expertise outsourcing, while another 43 percent said it Sharing Risks 2.40 remained the same. In terms of quality, 40 percent said it has improved, while over half 0 1 2 3 4 5 Source: WAN Outsourcing Survey 2009 said it remained the same. © World Association of Newspapers 2008-2009 After outsourcing, OFFSHORE VS. ONSHORE/DOMESTIC has the performance of the OUTSOURCING administration function in your Nearly four out of five of those surveyed said company improved, deteriorated, they chose to outsource administrative or remained the same functions domestically, while 11 percent chose in terms of quality and efficiency? to do so partially offshore. Cheaper labour % 60 Quality costs and lower taxes were the top reasons to Efficiency outsource the administration function offshore. 50 53.3 53.3 40 43.3 40.0 Is the outsourcing of the 30 administration function offshore? 20 Don’t know/NA 8.80% 10 Yes, partially 0 3.3 0 3.3 3.3 offshore Deteriorated Remained Improved N/A 11.80% the same Source: WAN Outsourcing Survey 2009 © World Association of Newspapers 2008-2009 DECISION MAKING FOR OUTSOURCING No 79.40% The administration functions most typically outsourced include maintaining Source: WAN Outsourcing Survey 2009 © World Association of Newspapers 2008-2009 photocopiers, fax machines, and postage meters; maintaining established shipping/receiving procedures; and ordering, DECISION MAKING FOR NOT storing and distributing supplies. OUTSOURCING The most important reasons for publishing When asked why they chose not to outsource companies to outsource the administration the administration function, these companies function is to focus on core competency. said it was because they had adequate in-house Cost savings is also another important factor, expertise, and were afraid the outsourcing according to the WAN Outsourcing Survey. would cause a loss of control. 14
  15. 15. VOLUME 8 REPORT N° 3 OUTSOURCING REVISITED Most Important Reasons Outsourcing Level: for Not Outsourcing Advertising Function the Administration Function Don't know/NA Fully (5-point scale, 1 means least important, 5.08% outsourced and 5 means most important) 3.39% 3 2 Adequate In-House 3.88 No Expertise plans Loss of Control 3.23 42.37% 25 23 Too Expensive 2.9 Organisation Resistance 2.63 Political Partially Sensitivities 2.31 outsourced Lack of 38.98% Outsourcing 1.96 5 1 Experience Will be outsourced Will be 0 1 2 3 4 5 in the future; outsourced Source: WAN Outsourcing Survey 2009 but no within next © World Association of Newspapers 2008-2009 timeline yet two years 8.47% 1.69% Source: WAN Outsourcing Survey 2009 © World Association of Newspapers 2008-2009 Advertising Function To break down by region, both of the two responses in Australasia chose to partially OUTSOURCING LEVEL outsource the function, while in North More than 40 percent of the publishing America, nearly 60 percent did so. In Africa, companies surveyed said they have not and do two of the three respondents said they have no not plan to outsource advertising, while plans to outsource advertising, while the third another 39 percent said they have partially said although there are plans to do so in the outsourced that function. future, there is not yet a timeline. Outsourcing Level: Advertising Function by Region Africa Asia Australasia Europe Latin America North America Fully outsourced count 0 0 0 2 0 0 % of all companies in the same region 0% 0% 0% 9% 0% 0% Partially outsourced count 0 3 2 8 2 8 % of all companies in the same region 0% 27% 100% 35% 33% 57% Will be outsourced within next two years count 0 0 0 1 0 0 % of all companies in the same region 0% 0% 0% 4% 0% 0% Will be outsourced in the future; but no timeline yet count 1 2 0 2 0 0 % of all companies in the same region 33% 18% 0% 9% 0% 0% No plans count 2 5 0 9 3 6 % of all companies in the same region 67% 45% 0% 39% 50% 43% Don't know/NA count 0 1 0 1 1 0 % of all companies in the same region 0% 9% 0% 4% 17% 0% Source: WAN Outsourcing Survey 2009 © World Association of Newspapers 2008-2009 15
  16. 16. MARCH 2009 SHAPING THE FUTURE OF THE NEWSPAPER POST-OUTSOURCING PERFORMANCE OFFSHORE VS. ONSHORE/DOMESTIC MEASUREMENT OUTSOURCING More than half of the companies that have Compared to the accounting and outsourced advertising functions said administrative functions, more companies efficiency has been improving, while 40 chose to outsource advertising offshore – percent said the quality has become better. nearly 30 percent partially outsourced it Fifty percent said the quality remained the offshore, while about 3 percent did so same after the outsourcing, while 36.7 percent completely. However, 67 percent of companies said so in terms of efficiency. However, 6.7 said they outsourced the advertising function percent of the companies said both quality and domestically only. efficiency became worse after outsourcing. A majority of the companies choosing to outsource advertising offshore picked India, After outsourcing, due to the cheaper cost of labour there, the has the performance survey found. Other options include Egypt and of the advertising function in your the United Kingdom. company improved, deteriorated, or remained the same in terms of quality and efficiency? Is the outsourcing of the % Quality advertising function offshore? 60 Yes, Don’t Efficiency totally know/ 50 53.3 50.0 offshore NA 2.70% 2.70% 40 40.0 36.7 Yes, partially 30 offshore 27.00% 20 10 6.7 6.7 3.3 3.3 0 Deteriorated Remained Improved N/A the same Source: WAN Outsourcing Survey 2009 © World Association of Newspapers 2008-2009 No 67.60% DECISION MAKING FOR OUTSOURCING Source: WAN Outsourcing Survey 2009 According to the survey, the top reasons © World Association of Newspapers 2008-2009 companies outsource advertising functions are to improve quality, as well as to save on costs. Another important factor is to focus on core competency. Most Important Reasons for Not Outsourcing Most Important Reasons the Advertising Function for Outsourcing (5-point scale, 1 means least important, the Advertising Function and 5 means most important) (5-point scale, 1 means least important, Adequate and 5 means most important) In-House 4.48 Expertise Quality 3.65 Loss of Control 3.74 Improvement Political 2.59 Cost Savings 3.64 Sensitivities Focus on Core Too Expensive 2.45 3.31 Competency Organisation Resistance 2.22 Lack of In-House 2.82 Expertise Lack of Outsourcing 2.10 Sharing Risks 2.26 Experience 0 1 2 3 4 5 0 1 2 3 4 Source: WAN Outsourcing Survey 2009 Source: WAN Outsourcing Survey 2009 © World Association of Newspapers 2008-2009 © World Association of Newspapers 2008-2009 16
  17. 17. VOLUME 8 REPORT N° 3 OUTSOURCING REVISITED DECISION MAKING FOR NOT OUTSOURCING Outsourcing Level: Circulation Function Of the companies choosing to not outsource advertising, the top reason is that they have Don't Fully know/NA outsourced adequate in-house expertise. Loss of control is 8.47% 8.47% another concern. 5 5 No plans 16 27.12% Circulation Function OUTSOURCING LEVEL 27 Compared to the accounting, administration, Partially Will be 3 outsourced and advertising functions, more companies outsourced 3 45.76% chose to outsource the circulation function, or in the future; but no Will be plan to do so in the future. More than 8 percent timeline yet outsourced of the responding companies fully outsourced 5.08% within next it, while another 46 percent did so partially. two years 5.08% More than 10 percent said they will do so in Source: WAN Outsourcing Survey 2009 the future, while less than 30 percent said they © World Association of Newspapers 2008-2009 have no plans to do so. To break down by region, Asia and Latin America are the areas with the highest percentage of outsourcing. More than 60 Less than 10 percent in Asia chose not to percent of companies in Asia and Latin outsource. The percentage is much higher in America have outsourced the circulation Australasia, North America, Africa and function fully or partially. Europe, with at least 30 percent saying so. Outsourcing Level: Circulation Function by Region Africa Asia Australasia Europe Latin America North America Fully outsourced count 0 1 0 4 0 0 % of all companies in the same region 0% 9% 0% 17% 0% 0% Partially outsourced count 1 6 1 8 4 7 % of all companies in the same region 33% 55% 50% 35% 67% 50% Will be outsourced within next two years count 0 0 0 1 1 1 % of all companies in the same region 0% 0% 0% 4% 17% 7% Will be outsourced in the future; but no timeline yet count 1 1 0 1 0 0 % of all companies in the same region 33% 9% 0% 4% 0% 0% No plans count 1 1 1 7 1 5 % of all companies in the same region 33% 9% 50% 30% 17% 36% Don't know/NA count 0 2 0 2 0 1 % of all companies in the same region 0% 18% 0% 9% 0% 7% Source: WAN Outsourcing Survey 2009 © World Association of Newspapers 2008-2009 17
  18. 18. MARCH 2009 SHAPING THE FUTURE OF THE NEWSPAPER POST-OUTSOURCING PERFORMANCE function. Focus on core competency and quality MEASUREMENT improvement are also important, they indicated. More companies (40.5 percent) said efficiency has OFFSHORE VS. ONSHORE/DOMESTIC improved after outsourcing, compared to quality OUTSOURCING (21.6 percent). However, nearly 19 percent Among those who outsourced the circulation said both efficiency and quality became worse. function, 72 percent chose not to do so offshore. Meanwhile, 20 percent either partially or fully outsourced it offshore. After outsourcing, has the performance The destinations of offshore outsourcing of the circulation function in your included Saudi Arabia, United Arab Emirates, company improved, deteriorated, Philippines, India, El Salvador and China. or remained the same Cheaper labour costs and being able to penetrate in terms of quality and efficiency? the foreign market more easily are the top two % Quality reasons for outsourcing circulation offshore. 60 Efficiency 50 45.9 40.5 40 Is the outsourcing of the 30 29.7 circulation function offshore? Yes, Don’t 21.6 totally know/ 20 18.9 18.9 offshore NA 13.5 2.30% 7.00% 10 10.8 Yes, 0 partially Deteriorated Remained Improved N/A offshore the same 18.60% Source: WAN Outsourcing Survey 2009 © World Association of Newspapers 2008-2009 DECISION MAKING FOR OUTSOURCING Delivering newspapers to the subscribers, dealers and newsstands were the most No popularly outsourced functions – more than 80 72.10% percent of respondents who have outsourced said they chose to outsource this function. Source: WAN Outsourcing Survey 2009 © World Association of Newspapers 2008-2009 Cost savings is the most important reason companies chose to outsource the circulation Most Important Reasons Most Important Reasons for Not Outsourcing for Outsourcing the Circulation Function the Circulation Function (5-point scale, 1 means least important, and 5 means most important) (5-point scale, 1 means least important, and 5 means most important) Adequate In-House 4.0 Expertise Cost Savings 4.33 Loss of Control 3.5 Focus on Core 3.59 Competency Too Expensive 3.0 Quality 3.39 Political Improvement 2.61 Sensitivities Lack of In-House Organisation 2.39 Expertise 2.69 Resistance Lack of Sharing Risks 2.53 Outsourcing 2.11 Experience 0 1 2 3 4 5 0 1 2 3 4 5 Source: WAN Outsourcing Survey 2009 Source: WAN Outsourcing Survey 2009 © World Association of Newspapers 2008-2009 © World Association of Newspapers 2008-2009 18
  19. 19. VOLUME 8 REPORT N° 3 OUTSOURCING REVISITED DECISION MAKING FOR NOT OUTSOURCING has improved, while about 23 percent said customer service has improved in terms of The main reason companies chose to not quality. However, there were still 19 percent outsource circulation is that they have who said the performance, either quality or adequate in-house expertise. Loss of control is efficiency, has deteriorated. another concern. Customer Service Function Outsourcing Level: OUTSOURCING LEVEL Customer Service Function Although about half of the respondents said Don't Fully know/NA outsourced they have no plans to outsource customer 6.78% 6.78% service functions, another 30 percent said they 4 4 have outsourced customer service either fully Partially outsourced or partially. 27.12% The outsourcing level of customer service is 16 relatively low in Asia and Latin America – more than 60 percent of respondents said they have no plans to do so. In Europe and North America, No 28 however, a higher percentage of companies have plans 47.46% chosen to outsource it – more than 40 percent 4 Will be outsourced have done so either fully or partially. 3 within next Will be two years POST-OUTSOURCING PERFORMANCE outsourced 6.78% MEASUREMENT in the future; but no timeline yet 5.08% Nearly 50 percent of companies that have Source: WAN Outsourcing Survey 2009 outsourced customer service said efficiency © World Association of Newspapers 2008-2009 Outsourcing Level: Customer Service Function by Region Africa Asia Australasia Europe Latin America North America Fully outsourced count 0 0 0 2 1 1 % of all companies in the same region 0% 0% 0% 9% 17% 7% Partially outsourced count 1 2 0 8 0 5 % of all companies in the same region 33% 18% 0% 35% 0% 36% Will be outsourced within next two years count 0 0 0 1 1 2 % of all companies in the same region 0% 0% 0% 4% 17% 14% Will be outsourced in the future; but no timeline yet count 0 1 0 2 0 0 % of all companies in the same region 0% 9% 0% 9% 0% 0% No plans count 1 7 2 8 4 6 % of all companies in the same region 33% 64% 100% 35% 67% 43% Don't know/NA count 1 1 0 2 0 0 % of all companies in the same region 33% 9% 0% 9% 0% 0% Source: WAN Outsourcing Survey 2009 © World Association of Newspapers 2008-2009 19
  20. 20. MARCH 2009 SHAPING THE FUTURE OF THE NEWSPAPER OFFSHORE VS. ONSHORE/DOMESTIC After outsourcing, OUTSOURCING has the performance of the Among the respondents who have outsourced customer service function in your customer service, seven out of 10 said they company improved, deteriorated, only did it domestically. Ten percent said they or remained the same completely offshored it, while another 10 in terms of quality and efficiency? percent did so partially. % 60 Quality Efficiency Philippines is the most popular destination for 57.1 sending customer service work offshore, 50 47.6 according to the survey. India is another place 40 respondents mentioned. 30 33.3 Cheaper labour cost is the top reason for companies to outsource customer service 20 23.8 19.0 19.0 offshore, according to the survey. 10 0 Is the outsourcing Deteriorated Remained Improved the same of the customer service Source: WAN Outsourcing Survey 2009 function offshore? © World Association of Newspapers 2008-2009 Yes, Don’t totally know/ offshore NA DECISION MAKING FOR OUTSOURCING 10.00% 10.00% Yes, partially Starting, stopping or suspending delivery of offshore 10.00% the newspaper is the most popular customer service function to outsource, according to the survey, with nearly 85 percent responding that they outsourced it. Web site and billing information/questions is another popular function to outsource – six out of 10 said they have done so. No The most important reason to outsource 70.00% customer service is to cut costs. Focusing on Source: WAN Outsourcing Survey 2009 core competency and improving quality are © World Association of Newspapers 2008-2009 also important. Most Important Reasons for Not Outsourcing Most Important Reasons the Customer Service Function for Outsourcing (5-point scale, 1 means least important, the Customer Service Function and 5 means most important) (5-point scale, 1 means least important, and 5 means most important) Adequate In-House 4.14 Expertise Cost Savings 4.20 Loss of Control 3.78 Focus on Core Too Expensive Competency 3.55 2.92 Quality Organisation 2.09 Improvement 3.31 Resistance Lack of Lack of In-House Outsourcing 2.09 Expertise 2.81 Experience Political 2.05 Sharing Risks 2.54 Sensitivities 0 1 2 3 4 5 0 1 2 3 4 5 Source: WAN Outsourcing Survey 2009 Source: WAN Outsourcing Survey 2009 © World Association of Newspapers 2008-2009 © World Association of Newspapers 2008-2009 20
  21. 21. VOLUME 8 REPORT N° 3 OUTSOURCING REVISITED DECISION MAKING FOR NOT OUTSOURCING Outsourcing Level: Editorial Function According to companies that chose to not Don't outsource circulation, the most important know/NA reasons are adequate in-house expertise, as 5.08% well as loss of control. 3 Partially outsourced 35.59% 21 Editorial Function No OUTSOURCING LEVEL plans 31 52.54% Outsourcing levels for editorial functions are Will be 1 outsourced relatively low compared to other functions. 3 within next More than half of the respondents said they two years 1.69% have no plans to let go of editorial work. About Will be outsourced 35 percent said they have partially outsourced in the future; some editorial work, but no respondents have but no timeline yet fully outsourced this work. 5.08% Asia is the region with a high percentage of Source: WAN Outsourcing Survey 2009 editorial functions outsourced – 55 percent © World Association of Newspapers 2008-2009 have done so partially. American respondents, however, have a relatively low percentage – more than 80 percent from Latin America and nearly 65 percent from North America said In Europe, more than half of the respondents they have no plans to do so. said they chose not to do so. Outsourcing Level: Editorial Function by Region Africa Asia Australasia Europe Latin America North America Fully outsourced count 0 0 0 0 0 0 % of all companies in the same region 0% 0% 0% 0% 0% 0% Partially outsourced count 0 6 2 9 1 3 % of all companies in the same region 0% 55% 100% 39% 17% 21% Will be outsourced within next two years count 0 1 0 0 0 0 % of all companies in the same region 0% 9% 0% 0% 0% 0% Will be outsourced in the future; but no timeline yet count 1 0 0 0 0 2 % of all companies in the same region 33% 0% 0% 0% 0% 14% No plans count 2 3 0 12 5 9 % of all companies in the same region 67% 27% 0% 52% 83% 64% Don't know/NA count 0 1 0 2 0 0 % of all companies in the same region 0% 9% 0% 9% 0% 0% Source: WAN Outsourcing Survey 2009 © World Association of Newspapers 2008-2009 21
  22. 22. MARCH 2009 SHAPING THE FUTURE OF THE NEWSPAPER POST-OUTSOURCING PERFORMANCE Design, layout and pagination are also MEASUREMENT outsourced by about six out of 10 companies that chose to outsource editorial. Compared to other functions, post- outsourcing performance measurement of Unlike other functions, quality improvement is editorial is more satisfactory than other the top reason for companies to outsource an functions – more than half said quality has editorial function, while cost savings is the improved, while more than 60 percent said number two reason. efficiency has improved. OFFSHORE VS. ONSHORE/DOMESTIC OUTSOURCING After outsourcing, has the performance Nearly 65 percent said they outsourced of the editorial function in your editorial work domestically only, while nearly 30 percent did so partially offshore, according company improved, deteriorated, to the survey. or remained the same in terms of quality and efficiency? Reasons companies gave as to why they % outsourced editorial work offshore include 70 Quality Efficiency more choice and range and writers with more 60 expertise. 60.9 50 52.2 The destinations for outsourcing offshore are 40 quite diverse – including the United States, Canada, the United Kingdom, Spain, France, 30 34.8 Jordan, India, Egypt and China. 20 21.7 10 8.7 8.7 8.7 4.3 0 Is the outsourcing of the Deteriorated Remained Improved N/A the same editorial function offshore? Source: WAN Outsourcing Survey 2009 Yes, Don’t © World Association of Newspapers 2008-2009 totally know/ offshore NA 3.60% 3.60% DECISION MAKING FOR OUTSOURCING Yes, partially Reporting and writing are the most popular offshore 28.60% functions to be outsourced, with more than 65 percent of the outsourcing companies choosing those areas to be done under another roof. Most Important Reasons No 64.30% for Outsourcing the Editorial Function (5-point scale, 1 means least important, Source: WAN Outsourcing Survey 2009 and 5 means most important) © World Association of Newspapers 2008-2009 Quality 4.00 Improvement Cost Savings 3.70 Focus on Core Competency 3.15 DECISION MAKING FOR NOT OUTSOURCING Lack of In-House 3.00 Expertise According to the companies that chose not to Sharing Risks 2.24 outsource editorial functions, the most important reasons are that they have adequate 0 1 2 3 4 5 Source: WAN Outsourcing Survey 2009 in-house expertise, and do not want to lose © World Association of Newspapers 2008-2009 control over this aspect of their businesses. 22
  23. 23. VOLUME 8 REPORT N° 3 OUTSOURCING REVISITED Most Important Reasons Outsourcing Level: for Not Outsourcing HR Function the Editorial Function Don't Fully (5-point scale, 1 means least important, know/NA outsourced and 5 means most important) 6.78% 3.39% 4 2 Adequate Partially In-House 4.77 outsourced Expertise 32.20% Loss of Control 4.17 19 Political 3.24 Sensitivities No Organisation plans 2.87 49.15% Resistance 29 Lack of Outsourcing 2.59 Experience 5 Too Expensive 2.48 Will be outsourced 0 1 2 3 4 5 in the future; Source: WAN Outsourcing Survey 2009 but no timeline yet © World Association of Newspapers 2008-2009 8.47% Source: WAN Outsourcing Survey 2009 © World Association of Newspapers 2008-2009 Human Resources Function OUTSOURCING LEVEL The outsourcing level in Latin America is About half of the companies said they have no relatively high – half of the companies chose plans to outsource human resources. More to outsource HR partially. However, the than 30 percent, however, chose to outsource situation in Europe is quite different – nearly HR partially, while less than 5 percent chose to six out of 10 respondents have no plan to fully outsource it. outsource it. Outsourcing Level: HR Function by Region Africa Asia Australasia Europe Latin America North America Fully outsourced count 0 0 0 2 0 0 % of all companies in the same region 0% 0% 0% 9% 0% 0% Partially outsourced count 0 4 0 7 3 5 % of all companies in the same region 0% 36% 0% 30% 50% 36% Will be outsourced within next two years count 0 0 0 0 0 0 % of all companies in the same region 0% 0% 0% 0% 0% 0% Will be outsourced in the future; but no timeline yet count 1 1 0 1 1 1 % of all companies in the same region 33% 9% 0% 4% 17% 7% No plans count 2 4 2 13 2 6 % of all companies in the same region 67% 36% 100% 57% 33% 43% Don't know/NA count 0 2 0 0 0 2 % of all companies in the same region 0% 18% 0% 0% 0% 14% Source: WAN Outsourcing Survey 2009 © World Association of Newspapers 2008-2009 23

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