Hot for offshoring: why it makes sense for marketers

David Wethey
Agency Assessments International

There is nothing new in the idea of sending work overseas, although the term 'offshoring' itself is new, and many of the venues are a surprise. Even before the economic downturn, actively controlling cost in the supply chain made perfect sense for marketers, as Charles Kirchner argued eloquently in Issue 42 of Market Leader. Now it's a no brainer. If we factor in the fevered debate about how agencies should be remunerated, offshoring is clearly also in the interest of agencies, as they rush to find ways of proving added value and reducing their dependence on charging for input cost.

Global companies and international agencies don't find it difficult to buy into the idea of profiting from their ubiquity. Trade followed the flag in all the world's great empires. IT, the internet, fast broadband and the wonders of digital now give extraordinary advantages to both suppliers and buyers of services, if they can leverage cost differentials while maintaining (and even at times enhancing) quality and continuity of supply.