Capitalising on lower cost resources overseas for creative production is not a new trend and one of the key reasons why having an offshore partner has become standard practice for many brands and agencies in 2020. It’s not surprising that the industry has transitioned from experimental to mainstream for many in the marketing, packaging and advertising world, as agencies look to lower their production costs by 40% or more with an offshore partner.
To better understand how to transition to an offshore model and benefit from the significant long-term impact this can have in terms of remaining competitive, increasing profits and accelerating growth, we’ll explore offshoring in more detail below.
Offshoring for creative production has had many false starts, but as the market matures and by developing the Smartshoring™ methodology, Amnet have redefined offshoring to make it compatible for the world of modern marketing and creative production. A more contemporary, relevant form of offshoring, Smartshoring™ is a customer-centric framework that allocates resource and expertise based on a customer’s precise requirement. Utilising the best talent wherever they may be in the world, alongside progressive pricing models has established Smartshoring™ as a strategic necessity for both brands and agencies, globally.
With a growing need for scalable campaign implementation and execution for global agencies, a recent study conducted by TKM Consultants generated new insight around market maturity, market rates, most popular locations and suitable services available, as well as Amnet’s approach to Smartshoring™. Their research reinforced some initial hunches but also introduced a raft of original, unique insight as to the “State of the Market for Offshore Creative Production”.
- 52% of those surveyed were currently offshoring.
- 100% of those that do offshore being very satisfied (43%) or satisfied (57%) with their experiences to date.
- 86% of those agencies that do currently offshore, have been doing so for at least 2 years.
- 50% of agencies have had relationships in place for more than 5 years, suggesting that long-term relationships are set to grow further.
India was easily the most popular location with 53% of agencies selecting their partner there. Having the advantage around its English-speaking workforce, an unmatched talent pool for creative services, supported by Higher Education Institutions, consistently high quality of production and an understanding of the international outsourcing market, it comes as no surprise that India was the favoured country for many of the agencies that participated in the research.