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Hollywood Offshoring

Seems as if offshoring is now trendy enough to have been adopted by Hollywood, according to this post by Wired GC. Apparently, the New York law firm of Smith Dornan Dehn has established an affiliate in India with more than 40 people working on various matters for clients like HBO, Sony Pictures, Universal and MTV Networks. When you examine the costs, the offshoring decision makes sense. As Wired GC notes:

Office space in Mysore is 43 times cheaper than in Manhattan. In New York most legal fees go to real estate. We have eliminated that. We pay $2,000 rent per month for a three storey building in Mysore. For that kind of money we won’t get anything in New York.  And neither in Mumbai or Delhi. Also, Mysore is over five times cheaper if you consider legal services fees. We charge $30 to $90 per hour compared to $200 to $700 per hour in the US.

So perhaps it is only a matter of time before more associate work (growing more expensive each day with rising salaries) will migrate over seas as well.

Posted by Carolyn Elefant on June 27, 2007 at 07:20 PM | Permalink | Comments (0)


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