Outsourcing Age

Should Playboy have Offshored?

Author: OutsourcingAge Editor

Playboy Enterprises announced on Tuesday that it’s going to outsource all business functions except editorial to American Media Inc. It primarily meant that American Media will ‘handle’ production, circulation, advertising sales, marketing and other services of Playboy magazine and other publications. Playboy CEO Scott Flanders believes that outsourcing operations will significantly cut costs and lead to profitability at its magazines business in 2011.

The first question that comes to my mind (somthing that I havn’t been able to get answers to, as well) is; what do they mean by ‘handle’? Outsourcing is famous for saving costs but is that the real motive behind this association? Undoubtedly, I see this relationship reducing the cost of production of their magazines but i wonder if enough offshoring options considered. Playboy’s partner in Singapore is doing a fantastic job at publishing and even creating content for VIP Magazine. They should have been the ideal choice for a vendor to manage operations for Playboy, in addition to a number of other service providers who have a wide network in the U.S. to manage production and other operations. Wouldn’t this have led to more significant savings?

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Tags: Advertising Sales, Business Functions, Circulation, Flanders, Ideal, Job, Led, Magazines, Motive, Offshoring, Options, Partner, Playboy Ceo, Playboy Enterprises, Playboy Magazine, Profitability, Relationship, Sales Marketing, Service Providers, Singapore

This entry was posted on Tuesday, February 23rd, 2010 at 1:01 am and is filed under Company News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.