Offshoring Digital or Interactive Services

August 11, 2008

Overview

Members of the ANA West Coast Media and ANA New Technologies committees comment on the extent to which their companies offshore their digital or interactive services.

The Question

An ANA member asked:

  1. Are you currently offshoring your agency digital/interactive services?
    1a. If no, do you have plans to offshore?
    1b. If yes, what specific countries are involved?
  2.  How much of your digital/interactive work is being offshored today?
    2a. How much of it do you expect to do by next year?
  3. What kind of agency labor are you offshoring in digital/interactive (e.g., analytics, web production, web development, etc.)?
  4. What other ideas are you pursuing to reduce your digital/interactive agency costs?
The Responses

Member Response #1

We do not engage in any direct offshoring or offshore outsourcing. The agency we use for web development does have offshore sourcing of some of its programmers in eastern Europe, however.

We do not intend to engage in offshoring or offshore outsourcing. Our development costs are quite low and any efficiencies gained would likely be offset by administrative complexities (working in different time zones limits the ability to speak directly to agency resources).

We keep development costs low through the use of boutique development shops with low overhead.


Member Response #2

  1. Are you currently offshoring your agency digital/interactive services? No
    1a. If no, do you have plans to offshore? No
    1b. If yes, what specific countries are involved? N/A
  2. How much of your digital/interactive work is being offshored today? N/A
    2a. How much of it do you expect to do by next year? None planned
  3. What kind of agency labor are you offshoring in digital/interactive (e.g., analytics, web production, web development, etc.)? N/A
  4. 4. What other ideas are you pursuing to reduce your digital/interactive agency costs? Shifting more online marketing budget toward Search and CPA / performance-based online media

Member Response #3

We are not currently offshoring our agency and do not have plans to.


Member Response #4

[We are] not offshoring any digital/interactive services that I'm aware of.


Member Response #5

  1. Are you currently offshoring your agency digital/interactive services? No
    1a. If no, do you have plans to offshore? Would depend on the agency's structure. We have worked with our agency partner where they tapped their Canadian office.
    1b. If yes, what specific countries are involved?
  2. How much of your digital/interactive work is being offshored today? Zero
    2a. How much of it do you expect to do by next year? Zero, but would depend on our agency.
  3. What kind of agency labor are you offshoring in digital/interactive (e.g., analytics, web production, web development, etc.)? Zero, but would consider it to lower agency costs.
  4. What other ideas are you pursuing to reduce your digital/interactive agency costs? Production cost, head count/FTE's...overall reviewing/assessing every job positions/roles.

Member Response #6

[W]e offshore but not in the context I believe is intended here. At [my company] we host over 90 different brand sites across the globe. The sites are mostly all developed in-country, yet the actual build, implementation, maintenance, etc. is done in the U.S. by partners. Not sure if this is what the member is looking for.


Member Response #7

I hate to not be able to provide you answers, but at this point we're treating this information as confidential.


Member Response #8

No, we do not offshore our agency work at this time, nor are we planning to pursue this in the future. To reduce agency costs, we are experimenting with smaller / newer agencies.


Member Response #9

  1. Are you currently offshoring your agency digital/interactive services? No
    1a. If no, do you have plans to offshore? No
  2. How much of your digital/interactive work is being offshored today? None

Member Response #10

  1. Are you currently offshoring your agency digital/interactive services? No
    1a. If no, do you have plans to offshore? No. We are currently 100% contained in the U.S.

Member Response #11

To answer your question, we are NOT offshoring any component of our US digital efforts.

Thanks.


Member Response #12

  1. 1. Are you currently offshoring your agency digital/interactive services? Yes, but not my area of responsibility and do not know the details.
  2. How much of your digital/interactive work is being offshored today? See above.
  3. What kind of agency labor are you offshoring in digital/interactive (e.g., analytics, web production, web development, etc.)? IT
  4. What other ideas are you pursuing to reduce your digital/interactive agency costs? We are looking to create better flexibility with our existing agencies to source projects efficiently.

Member Response #13

  1. Are you currently offshoring your agency digital/interactive services? No
    1a. If no, do you have plans to offshore? No

        4.  What other ideas are you pursuing to reduce your digital/interactive agency costs? We've moved from a project basis to a retainer agreement, which has reduced expenses.


Member Response #14

  1. Are you currently offshoring your agency digital/interactive services? No
    1a. If no, do you have plans to offshore? No
Source

"Offshoring Digital or Interactive Services." ANA West Coast Media Committee; ANA New Technologies Committee, March 2007.