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Media Masala: How Offshoring News Production will Change the Publishing Marketplace
   
    16 August 2004
SUMMARY:
 
 
Reuters appears to be moving forward with plans to move some of its editorial operations to its Indian offices, in spite of increasingly vocal opposition from its unionized journalists. With reduced margins in the news business widespread the lure of offshoring appears to be an irresistible option for major news organizations, even as they try to navigate the most delicate issues of how local news teams will fare in the years ahead. It's bound to be a painful transition for some but in the end it's likely to allow news publishers to transform the craft of journalism into something far more dynamic and influential than found in today's news operations.

The rumbings of change were presaged more than a year ago, as captured in our weblog last August, but now that Reuters Group PLC has announced the moving of twenty editorial jobs from U.S. and European editorial offices to its Indian operations journalists at the legendary news service are getting nervous, according to The Motley Fool, as threats of a lawsuit citing breach of a collective bargaining agreement are raised by journalist union reps. It doesn't sound on the surface as if Reuters' plans have changed significantly from last year's announcement: the move seems still to be focusing on production-oriented content generation processes that don't require a lot of personal in-market contact. Nevertheless, when 20 jobs are replaced with 40 to 60 less expensive workers, you know where the trends are heading.

For a profession that is already searching for its soul in the face of increasing competition from weblogs that oftentimes jump queue on breaking news, online news services that make it easier to pick up news and press releases from virtually anywhere and a broadening pool of less-than-exemplary  peers  in the headlines, journalists are hard pressed at times to feel cheery about the future of their craft. Yet mainstream and professionally-oriented news organizations have no choice but to change their production methods to compete in a world that is not only electronic-first but that no longer proffers a significant market advantage to established publishers based on their core technologies. Just as a generation ago the pressmen running the printing plants of major papers fought a slow, losing battle over the future of aging content production technologies, journalists for major news organizations are beginning to feel the technology impact on global editorial operations that has been pacing at their doorsteps for more than a decade.

Offshoring content production is in its infancy but already it's clear that the ability of news gatherers to leverage well-educated staff in global markets will put a radical new spin on local and global news gathering operations. The emphasis at the moment from editorial staffs is on protecting jobs, but in the long run it's much more about transforming journalism into a much more dynamic and effective profession. Here are a few thoughts as to what the offshoring movement will mean to both publishers and editorial specialists:

  •  Turning journalists into news "smart bombs". Business and general journalism has weakened greatly in an era of Fair Disclosure regulations that make it hard to break through corporate information barriers and an explosion of media outlets that give individual news brands far less leverage than they did in the past for opening up paths to unique news. Offshoring opens up the door to an era in which journalists will have resources available to digest and package prepackaged news far more effectively and to analyze news sources for the information that's most likely to lead a reporter to breakthrough coverage. Like re-equipping simple gravity bombs with "smart bomb" technology, leading journalists may find themselves to be heads of international news gathering teams that can digest reams of information and leads to zero in on the news that's going to make them stand out  more quickly and effectively than ever before. 
  • Out-Googling Google News. Newspaper Web sites are enjoying more exposure from search engines such as Google News but they wrestle with the implications of these services for their own portals' long-term health. Offshoring opens up the possibility of having the cost effective staffs necessary to build a far more robust online content presence than would be possible with today's online news outlets, a content base that could be tiered for premium consumption above and beyond the ad-driven content provided to the news search engines. Straight journalism will never give an organization an edge in the search engine game based on traditional measures of quality: breadth and depth must present far more content on a tiered basis to operate effectively in a search engine-driven distribution environment. Heaven forefend, there may even be a fair amount of content from other sources that's pulled together in a unique fashion by a technology-driven editorial staff. What a novel concept!
  • Out-blogging the bloggers. Let us assume for the moment that the talk about weblogs being a lower form of the journalistic craft is true. If so, then why get senior journalists to spill their guts in public RSS feeds when you could have offshore operations filling the blogosphere with more utilitarian fare that could feed in to more premium sources of content with links? Regardless of what one thinks of blogging as a professional outlet the facts on the ground point clearly to people coming to trust the more unfiltered content available via weblogs as a key source of information and news. In a global marketplace for content there's nothing that says that an Indian, Australian or Hungarian could not become as trusted as someone in the U.S., U.K. or Germany for a certain level of content. Offshoring could be just the thing for matching the cost-effective weblogging medium with editorial sources well-matched for cost-effective delivery.

While none of this may warm the souls of journalism students in Western countries trying to plot out a career path, it's probably as realistic a road map as any as to where the offshoring movement will take editorial content in the years ahead. The good news is that there will always be a need for feet on the ground in markets where gathering news is a personal experience. The bad news is that more of the people in those markets are becoming personal news-makers themselves, limiting the opportunities for professional journalists to gain an edge without clearly superior methodologies. Offshoring is likely to be more painful for journalists before it becomes fully beneficial, but it does offer some promise  for publishers trying to plot out a road to premium profits, which in turn may buoy the hopes for happy careers in the ranks of journalism. Here's hoping that this all works out to everyone's benefit sooner rather than later.

- John Blossom

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