The San Jose (Calif.) Mercury News is outsourcing its ad production to a U.S. firm with offices in India, following the lead of other MediaNews Group dailies.

The Mercury News will be sending its ad work to Express KCS, which maintains digital production offices in Gurgaon, India.

The Mercury News will begin outsourcing work July 1 and complete the transition by Aug. 30.

“We are appreciative of the work that our composing room employees have performed over the years, and would not be making this decision if it were not supported by sound business reasons,” said an explanatory memo from a Mercury News executive that was posted on a Web site operated by the Newspaper Guild at the St. Paul (Minn.) Pioneer Press.

Job cuts still unknown

The memo didn’t mention how many workers will be affected by the decision to farm out jobs to Express KCS, but the company is expected to add about 18 workers to handle the Mercury News’ ad volume.

Express KCS in January began processing ads for about 40 northern California newspapers owned by MediaNews Group, including The Oakland Tribune and the Contra Costa Times (see Newspapers & Technology, January 2007).

Generally, firms can save from 25 percent to 50 percent of their costs by outsourcing, depending upon the work involved.

Outsourcing blossoming

Express KCS’ expanded agreement with MediaNews comes as newspaper publishers closely examine the benefits of outsourcing some of their operations to overseas companies.

The Columbus (Ohio) Dispatch last month turned over its ad processing to Affinity Express Inc. and The Boston Globe, (Minneapolis) Star Tribune and The Tampa (Fla.) Tribune are also evaluating outsourcing some of their prepress and customer service operations. Affinity, which maintains its U.S. offices in suburban Chicago, last month signed an agreement with Mediaspectrum to anchor all of its ad production on the vendor’s software.

Meantime, CCI Europe’s parent company and Indian newspaper The Hindu said they will begin offering production outsourcing services to North American and European newspapers.

The venture, CCI Sourcing, is backed by Stibo — which owns CCI Europe — and The Hindu.

The company will offer ad production and other prepress services, said Johnny Theogersen, president of CCI Sourcing.

“The Hindu has more than 3,300 employees and the two companies have been in business for more than 350 years. We both are also solidly founded in the graphic arts industry,” he said, citing the venture’s pedigree and its background. “We know IT and we have a newspaper-centered focus.”

Hindu overseeing training

CCI Sourcing will be based in Chennai, India, where The Hindu’s corporate office and main print site is based. Stibo will handle marketing the venture while The Hindu will be responsible for hiring, training and managing the designers doing the work.

Finally, 2AdPro, a Los Angeles outsourcer backed by Indian software developer Ninestars Information Technology Ltd., last month made its industry debut at Nexpo ’07. Company Co-founder and Chief Marketing Officer Todd Brownrout said 2AdPro is basing its services on Web-based software that makes it easier for newspapers to oversee the management of ads created overseas. Brownrout, a former Los Angeles Times ad executive, launched the firm with Pervez Sikora, the Times’ former director of advertising technology. Brownrout said 2AdPro has already signed up more than 12 newspapers as clients, although he declined to disclose their identities due to non-disclosure agreements.