The Media Professional

American newspapers, anxious to lower their costs, have outsourced many of their production functions to countries, such as India, where costs are lower. Indians aren’t necessarily better artists than the American artists they replace. Their labor is simply less expensive to purchase…today.

The ready supply of available workers in India allows their costs to be low.

But, as soon as the demand for those production workers outstrips their availability, the price for their labor will rise. In fact, the cost for Indian labor is already rising in response to the changed markets for certain types of labor.

So, when Indian firms, whether newspapers or service bureaus, eventually need to trim their own costs, they may well emulate their American friends and outsource Indian jobs to other countries.

Won’t that be something to watch?

J.David Knepper

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