Offshoring and the Global Marketplace

The incentive for most book publishers who opt for Banta's global services, says Mead, is the "cost benefit for foreign sourcing … in projects that have a high labor component to the manufacturing process." For products produced in high quantities using processes that can be fully automated, "there often is not enough unit cost savings in the Far East to cover the added cost and time of the freight involved," explains Mead.

Another book manufacturer to go global—Phoenix Color in Hagerstown, Md.—did so in 2002, by setting up an onshore/offshore operation to provide publishers with the benefits of offshore manufacturing, but with the comfort of working with an American company. An American facility was set up in Rockaway, N.J., and an office in Asia. The Rockaway facility handles all prepress for domestic and Asian manufacturing; but, if a project is slated for Asian manufacturing, prepress is billed at Asian prices. Electronic files are created at both locations, which is another benefit to customers, says Sam Gallucci, COO Rockaway/Phoenix Asia. "Files in both locations allow you to have blended print runs, domestically and in Asia," he says.

Another advantage for publishers who work with American-based companies that source globally rather than work directly with foreign manufacturers is that customer service, estimating and billing is often handled in the United States.

Working with an American company also avoids another challenge that publishers who outsource offshore themselves sometimes face: international time zones. For example, Gallucci says, "Phoenix Color's sales and customer service teams provide … service and instant communication during EST business hours."

Global changes

However, working with a foreign company directly doesn't mean the inconvenience of international time zones either, especially in today's global marketplace.

Impelsys, an offshore electronic content production and processing company, launched its services for educational publishers in the United States in 2001. The company's primary production facilities are in Bangalore, India, which provides cost savings in the production process. However, its office in New York City ensures a familiar and convenient work environment for American clients, says Impelsys founder and CEO Sameer Shariff. "We can hold the customer's hand through the whole process, while the production is done offshore, so our customers don't have to get up at midnight to call someone overseas," explains Shariff. "Our office is open 24-7."