Publisher Finds Substantial Cost Savings ... in India
Eran Salu, managing director of Business Leader Media, says that ever since the company began outsourcing work to India, it has cut significant costs, allowing for reinvestment in its business.
For more than two years, Business Leader Media -- which provides local market intelligence to C-level executives -- has been outsourcing to India, where 65 percent of its workforce is now located.
The company publishes monthly magazines, Web sites and e-mail newsletters that provide profiles of businesses and leaders making an impact in their region. Business Leader Media hosts more than 70 business events annually and manages a daily newswire that provides local business news updated continuously. It also publishes national newsstand business-opportunity magazines and hosts the Web's most active small business forum.
Publishing Executive Inbox spoke with Salu to discuss the opportunities that overseas outsourcing can provide for publishers.
Inbox: Why did your company decide to outsource work?
Eran Salu: Our company began outsourcing projects to India about two-and-a-half years ago. Initially, we used overseas labor to digitize 50 years of magazine content onto our Web sites. We then hired programmers and Web designers to support our U.S. Web team. Gradually, we have replaced most U.S. positions in technology, administration, marketing, circulation and accounting/billing with equally talented labor in India.
Inbox: Why specifically are you outsourcing to India?
Salu: India has a tremendously educated and motivated work force. We typically have at least 10 qualified candidates for each open position. Labor rates in India are about 15 to 20 percent of what they would be in the U.S.
• 10-year CPA: $16,000 annually
• Senior Net Programmers: $15,000 to $18,000 annually
• Writers/Editors: $4,000 to $8,000 annually
• Circulation/Admin $2,000 to $4,000 annually
Inbox: What has your company's outsourcing experience been like?
Salu: We started with six employees and have grown to more than 100 employees in our Mumbai office. We run three daily shifts that span a 20-hour workday. Administration, circulation and accounting all work during U.S. nighttime hours, which is daytime in India. Our tech and marketing teams work a half-Indian, half-U.S. day. Writers and creative staff work U.S. hours. Outsourcing to India has made an aggressive growth plan possible. We primarily use Web and e-mail-based marketing efforts to grow our audience. These efforts would not be possible without utilizing a sizable overseas labor force.