Offshoring from US newspapers to India to grow; study

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New Delhi, Sep 9 (UNI) Offshoring from newspapers in United States to India, which is at a nascent stage now, is likely to grow in coming years as the US newspaper industry has been battling growing margin pressures in the last few years, a study says.

Dwindling circulation, decreasing advertising revenues, growth of the internet and rising newsprint prices have contributed to the downward trend in margins in the US, ValueNotes, a leading provider of business intelligence and research, says.

Apart from reducing global coverage, cutting edition sizes, streamlining resources and cutting excess jobs, several leading newspaper companies in the United States are evaluating offshoring.

The study says over the last couple of years, there has been an increasing trend of US-based newspaper publishers offshoring to India. ''This trend is set to gain traction in the next few years''.

The Indian offshore revenue from US newspaper publishers are projected to be 35 million dollars in 2008, says ValueNotes analyst Jaslene Bawa, adding it is liking to grow to 120 million dollars by 2012.

The study says there is a huge untapped potential for Indian service providers from the estimated kitty of 3.5 billion dollars.

But Indian service providers need to gain client confidence in terms of delivering consistently good quality output and quick turnaround.

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