Digital Artwork Production Market Procurement Intelligence Report

Business practices within Digital Artwork Production market are heavily influenced by changing trends across the category as well as within the broader Communication Services market. In the broader industry, automated tools and advanced technology is making inroads and even replacing some of the non-core workforce of suppliers. As a result, overall cost structure of suppliers has become more favorable across the industry and buyers of Digital Artwork Production can expect to benefit from lower costs of suppliers once they break even with their investments in technology.

Rising cost of workforce possessing core skill sets is expected to offset some of the cost savings that suppliers are expecting through implementation of lean and technology-based operations.

Buyers are moving towards longer contract durations and strategic partnerships with suppliers to benefit from value-based discounts, integrated services, low renewal cost and lesser expenses on contracting activities.

As a result, category managers need to closely monitor the Digital Artwork Production procurement trends and identify changes required in their procurement environment for the category.

It has become imperative for category managers to remain as agile as possible in terms of their procurement practices. However, it is not always easy to quickly spot and implement alternative practices in a category like Digital Artwork Production. To help quick decision making, this report advises on several procurement best practices that have worked well for category managers.

For example, Service providers often hire subcontractors to assist in certain aspects of a project. Buyers must ensure that subcontractors are bound by the same terms and conditions that main service providers adhere to. Buyers should also ensure that the project budget does not exceed while negotiating with subcontractors.

Buyers should engage in long-term contracts with service providers to gain value additions and other benefits. Engaging in long-term contracts reduces the total cost of ownership, for buyers, for the service delivered.

While engaging with a service provider, buyers should procure creative services from a tier 1 creative agency and outsource the production work to a local agency to reduce billing rates.

Digital Artwork Production procurement managers also need to proactively identify and mitigate potential risks that can arise in the supply chain or contracts for Digital Artwork Production procurement. Some examples include: