Newly-formed companies and business start-ups are often hard-pressed to save as much money as possible during the initial investment. This means that a lot of fresh-faced entrepreneurs usually try to do everything themselves. If they want a corporate video produced, chances are they’ll opt for hiring one to two staff members for video or they’ll search for the best online freelance video producer they can get on budget. They may consideroutsourcing to a third-party Los Angeles video production house an unfeasible expense.
But the common argument against in-house video production is that it actually costs more over the long run compared to outsourcing to a production company. When the long-term costs are broken down—such as salary, overheads, new equipment, and other resources—budget-conscious businesses can’t help but agree. From this, a third option presents itself; outsourcing overseas.
Kissmetrics presents outsourcing overseas as an extreme: many entrepreneurs have experienced the benefits of outsourcing their video production overseas, while others have sworn off the option altogether due. Is saving a couple of bucks worth the process and procedure of working with production companies halfway across the globe?
OVERSEAS BENEFITSARE ALL ABOUT BUDGET
Right off the bat, the immediate benefit of outsourcing overseas would be cost. The low cost oflaborin other parts of the world make it seem like a win-win situation for both parties. People would much rather pay an out-of-area video company $150 per project than a Los Angeles video production house $150 per hour. When juxtaposed like that, the savings are hard to deny.
But is it really that simple?
Kissmetrics references this post from ZDNet, where an outsourcing executive actually asks people to consider the other resources they’ll be exhausting when outsourcing projects. Money may be saved on the initial investment for the actual video product, but what of the time and effort it takes to coordinate between and manage the two teams?
MONEY ISN’T THE ONLY RESOURCE YOU HAVE
Timezone difference will always be a factor, as will accountability and contract issues. It’s much harder to get a hold of—and connect with—people you can’t physically approach. Horror stories of freelancers suddenly quitting and dropping all forms of communication halfway through the project are the reason many businesses are predisposed against overseas outsourcing. In scenarios such as these, there’s definitely more money lost.
A survey run by Computer Weekly reveals that 62% of offshore IT contracts actually cost much more than average businesses expected. In business, resources spent equal money in the long run, and the more resources you exhaust on simply coordinating with an offshore video production team will eventually take its toll on your finances.
OVERSEAS QUALITY CONTROL
Another common issue people have with overseas outsourcing is the quality of the product. The saying “you get what you pay for” often rings true when it comes to outsourced videos. The fact that you only get to see the final video and have no say or option to physically check it during the pre- or post-production process makes it all the more difficult to perform quality control.
Precious few production teams will allow for a re-do once the video is finished. What may happen is they’ll demand an adjustment fee—once again adding to expenses—or they’ll require you to order an entirely new project. So as far as initial payment and investment is made, yes. Outsourcing to companies overseas is the cheaper option. But taking into account every other aspect of video production, outsourcing your needs to a Los Angeles video production company may actually save you far more in the long run.