Sales outsourcing to retain revenue at Playboy

Sales outsourcing to retain revenue at Playboy Popular US magazine Playboy is to implement sales outsourcing in order to reduce losses incurred during the recession.

American Media Inc, which publishes titles such as National Enquirer, Men's Fitness and Shape, will take over all aspects of Playboy's operations - including sales - apart from editorial work.

Marketing and sales outsourcing is expected to cut costs at the magazine, shrinking losses from $8 million to $5 million in 2010 and bringing about a move back into profit-making a year later.

Scott Flanders, chief executive of Playboy Enterprises, said: "Our goal is to focus our resources on what we do best, which is to create compelling content. By joining forces with American Media, we will be able to significantly reduce our cost structure."

Proactive Investors UK recently recommended that firms consider sales outsourcing in India, as the animation industry in the country is set to boom in the next few years, doubling turnover by 2013.

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