China, Philippines, Malaysia, Singapore, South Africa and Australia are posing serious threat to the Indian advertising outsourcing business.
Releasing the `Paper on Outsourcing in Advertising: Is India the Destination Next?' Mr Mahendra K. Sanghi, President, Assocham, said that these countries offer a sound infrastructure and a single window clearance.
Whereas in India, policy makers are yet to evolve a mechanism to take a call to accept outsourcing opportunities.
Estimates reveal that during 2004-05, the Indian advertising industry spent $5 billion in going abroad to shoot films.
Mr Sanghi said this is because the advertising industry in India confronted hassles to obtain permissions to shoot sites of scenic beauties for filming documentaries to promote advertisements.
The paper, which will shortly be submitted to the Government, recommends a slew of proposals to make India an attractive destination.
These include creating a `single window clearance' to enable advertisers to outsource their business in India in a hassle-free environment and reducing the import duties on equipments needed to manufacture cameras that are cost competitive. Other suggestions include the promotion of the advertisement industry and the adoption of a process-driven approach for giving a higher confidence to the international customer.
Advertising agencies too should come together with a common vision that India's collective capability has to be sold to the international market rather than the agencies' individual capabilities.