Outsourcing entry level jobs is shipping learning overseas
While speculation on the impact of AI on junior roles is widespread, Spinach’s Ben Willee reports that outsourcing to cheap offshore outfits is costing jobs right now.
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With budgets shrinking and margins narrowing, every agency in town is looking for a way to cut costs. While AI and automation are hogging the headlines, there’s another approach that’s been playing out in the background for decades: outsourcing.
What started with IT and call centres has now crept into the creative and media world.
Across the industry, many multinational agencies and, dare I say, some of the bigger indie agencies are quietly moving junior roles offshore. And I’m not talking about agency teams in far-flung countries. Instead, think freelance help desk-type talent, run by cheap labour hire outfits.
My sources tell me that at least two major holding companies have been outsourcing entry-level media positions for more than a year. One agency has reportedly got a labour hire hub in India where every task goes into a ticketing system before being assigned to whoever is available.
Ben, Your article makes complete sense. However, when margins are constantly being driven down and with many clients now wanting fees based on output – not head count and head hours – the cost of training people, no matter how much the industry benefits from it – is becoming more difficult to justify by the day. Even more so when every single marketer in Australia is being pushed by their senior management and Boards to adopt Ai and automation. Trust me , clients don’t care where work is created as long as it’s cheaper than it was yesterday.
Holding groups are dying quickly!