Thursday
Best Countries For Outsourcing
Lisa DiCarlo
By 2015, analysts predict that more than 3 million white-collar jobs in the U.S. will be farmed out to other countries, up from about 300,000 today. If that shift is inevitable, the next question becomes which countries offer the best choice. Here, we will provide some guidelines to help answer that question.
India | Phillipines | Russia | China| Canada | Mexico | Ireland
Outsourcing generally refers to the practice of farming out jobs from their home base to other countries, largely in an effort to cut costs. Many American companies are now transferring technology development, customer service, financial and administrative jobs to international markets. The move parallels the dramatic shift of manufacturing jobs outside U.S. borders.
"Twenty years ago we stopped putting a premium on assembling products," says analyst John McCarthy of Forrester Research in Cambridge, Mass. He suggests that many corporate functions are likewise becoming commoditized and therefore don't require a highly salaried workforce.
Companies like Citigroup and General Electric were pioneers, having established specialized centers in other countries and sending ever more complex and critical functions outside the U.S. Companies like IBM acknowledge the trend and are reportedly hastening efforts to move jobs outside the U.S. before its competitors do.
India is the leading recipient of the outsourcing of information technology functions like software development and maintenance, and also business process outsourcing. The latter includes back-office functions like accounting, human resources, call centers and data analysis.
Like manufacturing before it, outsourcing will fall into a tiered structure. Writes McCarthy, "Simple, base-level back-office payroll and data entry will go to rock-bottom-wage countries like Vietnam and Uruguay over time, and countries like India will move up the food chain and take on more complex software and product development services."
Here we provide a top-level assessment of seven countries that currently provide the best alternatives for U.S. companies. The data is based on information gathered by the A.T. Kearney division of Electronic Data Systems, which compiled its data from the Bank of America, Gartner Group, International Data, International Country Risk Guide, World Bank and World Markets Research Center. Data for our assessment were also provided by neoIT, a global outsourcing advisory firm.
By 2015, analysts predict that more than 3 million white-collar jobs in the U.S. will be farmed out to other countries, up from about 300,000 today. If that shift is inevitable, the next question becomes which countries offer the best choice. Here, we will provide some guidelines to help answer that question.
India | Phillipines | Russia | China| Canada | Mexico | Ireland
Outsourcing generally refers to the practice of farming out jobs from their home base to other countries, largely in an effort to cut costs. Many American companies are now transferring technology development, customer service, financial and administrative jobs to international markets. The move parallels the dramatic shift of manufacturing jobs outside U.S. borders.
"Twenty years ago we stopped putting a premium on assembling products," says analyst John McCarthy of Forrester Research in Cambridge, Mass. He suggests that many corporate functions are likewise becoming commoditized and therefore don't require a highly salaried workforce.
Companies like Citigroup and General Electric were pioneers, having established specialized centers in other countries and sending ever more complex and critical functions outside the U.S. Companies like IBM acknowledge the trend and are reportedly hastening efforts to move jobs outside the U.S. before its competitors do.
India is the leading recipient of the outsourcing of information technology functions like software development and maintenance, and also business process outsourcing. The latter includes back-office functions like accounting, human resources, call centers and data analysis.
Like manufacturing before it, outsourcing will fall into a tiered structure. Writes McCarthy, "Simple, base-level back-office payroll and data entry will go to rock-bottom-wage countries like Vietnam and Uruguay over time, and countries like India will move up the food chain and take on more complex software and product development services."
Here we provide a top-level assessment of seven countries that currently provide the best alternatives for U.S. companies. The data is based on information gathered by the A.T. Kearney division of Electronic Data Systems, which compiled its data from the Bank of America, Gartner Group, International Data, International Country Risk Guide, World Bank and World Markets Research Center. Data for our assessment were also provided by neoIT, a global outsourcing advisory firm.
Networks Increase Advertising on High-Traffic Internet Sites
Cable, Broadcasting Tap Portals to Promote Key Programming to Upscale Web Users 18 to 24
After a long period of deep mistrust of the value of online advertising, television networks are increasingly turning to high-traffic Internet portals to promote their new programming.
"It's the core of our campaign," said Dave Howe, senior VP of marketing for the Sci Fi Channel. "Entertainment is the No. 1 form of content on the Internet. If you're in the industry, how could you not consider using this medium?"
Fox, USA Networks, Sci Fi Channel, The WB, Animal Planet and others regularly place ads on sites such as Yahoo, MSN and AOL.
The buying comes as movie studios are regularly integrating online ads into theatrical campaigns and the Internet is enjoying an overall surge in ad buys-up 11 percent to $1.69 billion in the first quarter of 2003, according to the Interactive Advertising Bureau.
"We pretty much promote all of our shows on AOL and Yahoo," said Nancie Martin, senior VP of new media for The WB. "You want to reach your constituency wherever they are, and our audience was born with a mouse in its hand."
David Ernst, executive VP, director of futures and technologies, for Initiative Media, said Internet advertising is "a good opportunity" for networks. "Especially since very loyal TV viewers are apt to go out on the Web to seek information on the show," he said.
Fellow ad buyer Starcom has recently allocated an undisclosed amount of funds to test the medium's effectiveness in a new series of video-based online ads.
"A lot of advertisers that might have been scared off in the recent past are re-welcoming the Internet as part of their advertising budget," said Saneel Radia, manager of Starcom's IP division. "It's a much less cluttered environment than television. And we know for a fact the user is watching the ad and hasn't gotten up and walked away."
One successful promoter of online entertainment advertising is Jim Moloshok, senior VP of media, entertainment, information and finance at Yahoo and former senior VP of marketing for Warner Bros.
Under Mr. Moloshok's leadership, Yahoo has landed ads from 50 motion pictures this summer and has just announced a content-trading agreement with "Entertainment Tonight."
Mr. Moloshok hopes to have similar success courting television networks by emphasizing the Internet's use among business professionals. "We are like the television of the workplace," Mr. Moloshok said. "On the radio, you have an average of 24 minutes during a commute to reach a person. But we're with people eight hours while they're at work. If you have a show that's debuting tonight, they're going to know it's on."
Eric Hadley, director of ad sales and marketing for MSN, also stressed the medium's ability to reach workplace viewers. "[Network advertisers] are getting a great at-work audience throughout the day," Mr. Hadley said. "These are highly desirable upper-income professionals. They're on the computer all day; they're checking out stuff. This is an eight-to-10-hour advertising void while they're making their evening plans."
Targeting Demographics
Another benefit of portal ads is their ability to target particular demographics and interests. MSN and Yahoo, in particular, can place ads that appear only on the screens of select users. Variables can include the user's ZIP code, age, sex and interests.
"We don't work on the same breaks as Nielsen," Mr. Moloshok said. "You can't buy men 18 to 24 who live in the South and like action hours on television. We can target those people."
"We can really start eliminating a lot of the waste," agreed Starcom's Mr. Radia.
It is not clear, however, whether networks have yet taken advantage of this technology. Even Mr. Howe, who boasts that Sci Fi was the first cabler to advertise on Yahoo's homepage, said his network practices a blanket approach to buying online ad space.
"If you can't afford a huge buy, then you can target by ZIP code. But we haven't done that at this juncture," Mr. Howe said. "We will in the future."
Indeed, talking to marketers, it seems as if each approaches Internet ad buying with slightly different priorities.
For Sci Fi, there's an emphasis on click-through ads to take Web surfers to the network's site. "Click-throughs are very valuable," Mr. Howe said.
At The WB, the main attraction is the Web's interactivity. "We like that they can volunteer to look at something," Ms. Martin said. "And then you can show them something that actually looks like what they're going to be watching."
For USA Networks, which is devoting an increasing percentage of its marketing budget to online ads, click-throughs and extras are not the main attraction. "The attitude a few years ago was everybody was worried about click-through rates.
Now we're using this as another way of branding our programming," said John Halpin, director of interactive marketing for USA.
"The idea is to sort of hit people when they're planning to watch something. If they click through, great, but that's not the goal."
All the marketers emphasized, however, that online ads are an addendum to traditional ad venues, not a replacement. "I think it's good to reach somebody at work, and then again on their way home in a different medium, which would reinforce the message," Mr. Ernst said.
"Online advertising is smart, but I don't think it's something I'd do at the exclusion of another medium, he said."
After a long period of deep mistrust of the value of online advertising, television networks are increasingly turning to high-traffic Internet portals to promote their new programming.
"It's the core of our campaign," said Dave Howe, senior VP of marketing for the Sci Fi Channel. "Entertainment is the No. 1 form of content on the Internet. If you're in the industry, how could you not consider using this medium?"
Fox, USA Networks, Sci Fi Channel, The WB, Animal Planet and others regularly place ads on sites such as Yahoo, MSN and AOL.
The buying comes as movie studios are regularly integrating online ads into theatrical campaigns and the Internet is enjoying an overall surge in ad buys-up 11 percent to $1.69 billion in the first quarter of 2003, according to the Interactive Advertising Bureau.
"We pretty much promote all of our shows on AOL and Yahoo," said Nancie Martin, senior VP of new media for The WB. "You want to reach your constituency wherever they are, and our audience was born with a mouse in its hand."
David Ernst, executive VP, director of futures and technologies, for Initiative Media, said Internet advertising is "a good opportunity" for networks. "Especially since very loyal TV viewers are apt to go out on the Web to seek information on the show," he said.
Fellow ad buyer Starcom has recently allocated an undisclosed amount of funds to test the medium's effectiveness in a new series of video-based online ads.
"A lot of advertisers that might have been scared off in the recent past are re-welcoming the Internet as part of their advertising budget," said Saneel Radia, manager of Starcom's IP division. "It's a much less cluttered environment than television. And we know for a fact the user is watching the ad and hasn't gotten up and walked away."
One successful promoter of online entertainment advertising is Jim Moloshok, senior VP of media, entertainment, information and finance at Yahoo and former senior VP of marketing for Warner Bros.
Under Mr. Moloshok's leadership, Yahoo has landed ads from 50 motion pictures this summer and has just announced a content-trading agreement with "Entertainment Tonight."
Mr. Moloshok hopes to have similar success courting television networks by emphasizing the Internet's use among business professionals. "We are like the television of the workplace," Mr. Moloshok said. "On the radio, you have an average of 24 minutes during a commute to reach a person. But we're with people eight hours while they're at work. If you have a show that's debuting tonight, they're going to know it's on."
Eric Hadley, director of ad sales and marketing for MSN, also stressed the medium's ability to reach workplace viewers. "[Network advertisers] are getting a great at-work audience throughout the day," Mr. Hadley said. "These are highly desirable upper-income professionals. They're on the computer all day; they're checking out stuff. This is an eight-to-10-hour advertising void while they're making their evening plans."
Targeting Demographics
Another benefit of portal ads is their ability to target particular demographics and interests. MSN and Yahoo, in particular, can place ads that appear only on the screens of select users. Variables can include the user's ZIP code, age, sex and interests.
"We don't work on the same breaks as Nielsen," Mr. Moloshok said. "You can't buy men 18 to 24 who live in the South and like action hours on television. We can target those people."
"We can really start eliminating a lot of the waste," agreed Starcom's Mr. Radia.
It is not clear, however, whether networks have yet taken advantage of this technology. Even Mr. Howe, who boasts that Sci Fi was the first cabler to advertise on Yahoo's homepage, said his network practices a blanket approach to buying online ad space.
"If you can't afford a huge buy, then you can target by ZIP code. But we haven't done that at this juncture," Mr. Howe said. "We will in the future."
Indeed, talking to marketers, it seems as if each approaches Internet ad buying with slightly different priorities.
For Sci Fi, there's an emphasis on click-through ads to take Web surfers to the network's site. "Click-throughs are very valuable," Mr. Howe said.
At The WB, the main attraction is the Web's interactivity. "We like that they can volunteer to look at something," Ms. Martin said. "And then you can show them something that actually looks like what they're going to be watching."
For USA Networks, which is devoting an increasing percentage of its marketing budget to online ads, click-throughs and extras are not the main attraction. "The attitude a few years ago was everybody was worried about click-through rates.
Now we're using this as another way of branding our programming," said John Halpin, director of interactive marketing for USA.
"The idea is to sort of hit people when they're planning to watch something. If they click through, great, but that's not the goal."
All the marketers emphasized, however, that online ads are an addendum to traditional ad venues, not a replacement. "I think it's good to reach somebody at work, and then again on their way home in a different medium, which would reinforce the message," Mr. Ernst said.
"Online advertising is smart, but I don't think it's something I'd do at the exclusion of another medium, he said."
Monday
IAB Launches Acceleration Program
Reported by Dawn Anfuso
In a show of solidarity for the future of interactive advertising, the Interactive Advertising Bureau (IAB) last week announced that several IAB member companies will participate in an Acceleration Program designed to hasten the growth of the industry.
This will enable the association to immediately initiate programs and projects that will further improve the value of the interactive advertising medium for advertisers and agencies. Participating companies will fund the Acceleration Program by providing pre-paid membership fees worth $5.8 million.
Acceleration Program participating companies are:
* 24/7 Real Media
* America Online, Inc.
* CNET Networks
* Google
* LookSmart, LTD.
* MSN
* New York Times Digital
* Overture Services
* Wall Street Journal Online
* The Walt Disney Internet Group and
* Yahoo!
“Online publishers have created real momentum in the interactive medium over the past two years as their and the IAB's efforts have brought wider adoption of the medium as an integral part of marketers' budgets. The Acceleration Plan allows the IAB, on behalf of the industry, to build upon our success to date and further accelerate marketers’ adoption and thus, spending in the interactive medium," says Shelby Bonnie, chairman of the IAB and chief executive officer, CNET Networks, Inc.
The IAB acceleration funds are earmarked for the launch of critical industry initiatives over the next few years that are geared towards simplifying the process of planning, buying and creating interactive advertising and on educating key marketers, media planners and buyers on the value offered by interactive advertising. In addition, the funds will assist in building IAB membership and member services.
Specific projects made possible by the acceleration funds include:
1) the seven-city Cross Media Optimization Study (XMOS) Road Show conducted in April 2003
2) expansion of XMOS to include additional marketers
3) build-out of the IAB events and education division
4) industry simplification programs (the first of which was the Universal Ad Package, launched in May 2003), including industry-wide standards and guidelines (measurement, ad sizes terms and terms and conditions, etc.) as well as standards for particular industry segments such as email, classifieds, search, etc.;
5) development of additional member services, such as the Media Credit System designed to help businesses manage risk.
In a show of solidarity for the future of interactive advertising, the Interactive Advertising Bureau (IAB) last week announced that several IAB member companies will participate in an Acceleration Program designed to hasten the growth of the industry.
This will enable the association to immediately initiate programs and projects that will further improve the value of the interactive advertising medium for advertisers and agencies. Participating companies will fund the Acceleration Program by providing pre-paid membership fees worth $5.8 million.
Acceleration Program participating companies are:
* 24/7 Real Media
* America Online, Inc.
* CNET Networks
* LookSmart, LTD.
* MSN
* New York Times Digital
* Overture Services
* Wall Street Journal Online
* The Walt Disney Internet Group and
* Yahoo!
“Online publishers have created real momentum in the interactive medium over the past two years as their and the IAB's efforts have brought wider adoption of the medium as an integral part of marketers' budgets. The Acceleration Plan allows the IAB, on behalf of the industry, to build upon our success to date and further accelerate marketers’ adoption and thus, spending in the interactive medium," says Shelby Bonnie, chairman of the IAB and chief executive officer, CNET Networks, Inc.
The IAB acceleration funds are earmarked for the launch of critical industry initiatives over the next few years that are geared towards simplifying the process of planning, buying and creating interactive advertising and on educating key marketers, media planners and buyers on the value offered by interactive advertising. In addition, the funds will assist in building IAB membership and member services.
Specific projects made possible by the acceleration funds include:
1) the seven-city Cross Media Optimization Study (XMOS) Road Show conducted in April 2003
2) expansion of XMOS to include additional marketers
3) build-out of the IAB events and education division
4) industry simplification programs (the first of which was the Universal Ad Package, launched in May 2003), including industry-wide standards and guidelines (measurement, ad sizes terms and terms and conditions, etc.) as well as standards for particular industry segments such as email, classifieds, search, etc.;
5) development of additional member services, such as the Media Credit System designed to help businesses manage risk.
Sunday
European ad revenues sparking back into life
Silicon.com
French figures starting to blossom...
With almost €200m of advertising cash spent in the first quarter of 2003, the internet is strengthening its position in the top five advertising media in France, but it's still far behind television and the written press.
Advertising spend on the net reached €200m over the first three months of the year in France – a rise of 47.4 per cent compared to the same period in 2002. That's the finding of a study carried out by the Internet Advertising Bureau and media monitoring service, TNS Media Intelligence.
The research shows that advertisers spent almost €8.1bn across all media in the first quarter, with the internet representing 2.45 per cent of the total market. While it’s a share that might seem small, it's one that's grown massively in comparison with the first quarter of 2002, when internet advertising made up just 1.6 per cent of the total.
The sector strengthened its place in fifth position on the ladder of advertising media, leaving the cinema trailing it with €74m spent. Nevertheless, internet advertising still remains far behind the two heavyweights of the written press and television, which attracted €2.8bn and €2.68bn of advertising spend respectively, which in turn are followed by radio and hoardings.
Travel agents and tourist offices are the main users of internet advertising. They represent 22.4 per cent of advertising expenditure, behind telecoms with 20.4 per cent and the service sector at 12 per cent, according to TNS Media Intelligence.
French figures starting to blossom...
With almost €200m of advertising cash spent in the first quarter of 2003, the internet is strengthening its position in the top five advertising media in France, but it's still far behind television and the written press.
Advertising spend on the net reached €200m over the first three months of the year in France – a rise of 47.4 per cent compared to the same period in 2002. That's the finding of a study carried out by the Internet Advertising Bureau and media monitoring service, TNS Media Intelligence.
The research shows that advertisers spent almost €8.1bn across all media in the first quarter, with the internet representing 2.45 per cent of the total market. While it’s a share that might seem small, it's one that's grown massively in comparison with the first quarter of 2002, when internet advertising made up just 1.6 per cent of the total.
The sector strengthened its place in fifth position on the ladder of advertising media, leaving the cinema trailing it with €74m spent. Nevertheless, internet advertising still remains far behind the two heavyweights of the written press and television, which attracted €2.8bn and €2.68bn of advertising spend respectively, which in turn are followed by radio and hoardings.
Travel agents and tourist offices are the main users of internet advertising. They represent 22.4 per cent of advertising expenditure, behind telecoms with 20.4 per cent and the service sector at 12 per cent, according to TNS Media Intelligence.
