Friday, May 25, 2007

Reuters Outsources to India to Cover US Financial News

Outsourcing of media and publishing is one of the most recent events in the Outsourcing industry, bringing about an unprecedented revolution in the global media and publishing business. Preceding Reuter’s decision to outsource its work to India, Time Warner's magazine Business 2.0, New York Times, and Technology news portal CNET have experimented with outsourcing their research reports, news alerts, editing work and are looking to initiate pilot programs to get news pages designed in India.

The aim again is cost-cutting and to provide up-to date news, keeping the reports, bulletins, and broadcasts, fresh throughout the day. Reuters has acquired a base in Bangalore (a Reuters Bureau, like any other) with 60 people who are to carry out their basic data analysis, and compile tables, with over 300 non-editorial people monitoring market data. In addition, a polling unit has also been set up to make calls for collecting data, starting with Australian economic polling. The stories, however, will be written in the original centre.

David Schlesinger, global managing editor, Reuters, corroborates that the driving force behind outsourcing their work to India is to avail of the huge cost advantage. According to Schlesinger, the move meant that Reuters could broaden their coverage of US companies without incurring crippling costs. Also, they can use their New York journalists for more interesting stories, and to conduct interviews with senior company officials. Reuters is keen to benefit from the advance in technology in India, which is apt for conducting editorial and publishing work, and looks forward to a flourishing outsourcing publishing business from India.

The journalists employed by Reuters, Bangalore, cover US financial news in night shifts. Company news is reported live as it happens on the New York Stock Exchange. These journalists get an opportunity to work for the world's biggest news agency, Reuters, for much less than their counterparts in the US. With this move, Reuters implements its massive cost-cutting program. The journalism operation in Bangalore could soon be significantly expanded, said Schlesinger.

So, while the News industry never tires of slamming the outsourcing industry in general, it seems to have discovered the benefits of Outsourcing for itself.