| The
seminar brought out five core elements to
the technology change
o
Broadband
o
Mobile
o
PVR
o
HDTV
o
Increasing competition from gaming and other
forms of non broadcast entertainment
Some
of the regulatory-led change are:
o
Digital broadcasting (analogue switch off)
o
Deregulation
Willaims gave out some pointers on how outsourcing
can help broadcasters
o
Outsourcing in broadcast markets as much
about innovation as cost savings.
o
Solving new problems, such as distribution
to emerging platforms.
o
Outsourcers act as a catalyst, enabling
broadcasters to transform ways of working.
At heart of every outsourcing relationship.
o
Economies of scale, improved operational
effectiveness and off shoring.
o
Typically savings of 20-30%, but depends
totally on the nature of the service.
Williams
also listed out some of the benefits achieved
by outsourcing other parts of the world.
o
Outsourcing in broadcast markets as much
about innovation as cost savings.
o
Solving new problems, such as distribution
to emerging platforms.
o
Outsourcers act as a catalyst, enabling
broadcasters to transform ways of working.
·
Significant technology investment needed
to compete in changing broadcast market.
o
Outsourcers can help broadcasters smooth
their investment profile.
o
Pay an annual charge i.e. from capex to
opex.
o Outsourcers and their partners
provide greater specialisation.
o
Apply learning from working with other broadcast
organisations.
o
Sometimes easier to measure and incentivise
services provided externally.
o At heart of every outsourcing relationship
.Economies of scale, improved operational
effectiveness and off shoring.
o
Typically savings of 20-30%, but depends
totally on the nature of the service.
o Allows broadcaster to concentrate
more effectively on its business strategy.
o
Reduces the level of management attention
required for non core activities.
o
Hands problem over to a third party.
·
Driven by cost savings and risk transfer
/ reduction.
·
Embeds outsource provider in broadcaster's
organisation.
o
Provides transformational change.
o
Driven by risk sharing / reduction and cost
savings.
o
Flexibility
Three
Principal Issues
o
Not understood initial cost base or level
of savings achievable in house
o
Not factored all costs into deal e.g. transition,
management and termination
o
Maintain outsourced services in house (pay
twice over)
o
Efficiencies change over time i.e. cost
efficient process in 2006 may be an expensive
one by 2010
Reasons
and Observations
o
Both actual falls and perception that service
levels have fallen are important
o
Broadcaster culture - problems need solving
at once even if not "on air"
o
Require realistic service levels to be agreed
and communicated to all users
o
Broadcaster and outsourcer need to understand
each other's business drivers
o Need to protect competitive strengths
and strategic identity. For instance, a
company outsourcing technology may decide
to keep enough of its technology strategists
in house to be in control of its technology
vision.
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