Outsourcing Ad Production: The Shape of Things to Come?

31 December 2007

SACRAMENTO, California: The McClatchy Company, America's third largest newspaper group, is to outsource ad production work to India for a second title in its 31-strong newspaper stable.

Earlier this month the company transferred ad preparation for The Sacramento Bee to New Delhi-based Mindworks - a move cagily described by McClatchy executive editor Anders Gyllenhaal as "in the testing phase".

But in economies where labor rates are lower than a snake's belly, such "testing phases" tend to be remarkably short-lived.

As was demonstrated by McClatchy's announcement late last week that sections of The Miami Herald are also to be switched to India, effective January.

The effect of these job exports on employment in the Miami and Sacramento areas is a matter on which executive editor Gyllenhaal was reluctant to comment when interviewed by Associated Press.

Data sourced from Wall Street Journal Online and Associated Press; additional content by WARC staff