What's luring Indian digital agencies to set up shops abroad?

A number of India-based digital agencies like LS Digital, Gozoop, Foxymoron and Schbang are expanding internationally at a rapid speed. Not just they are setting up shops abroad but also serving them from India as well.

Leaders said that working in international markets is lucrative to them for a number of reasons, and better remuneration/revenue tops the list.

Harshil Karia

Harshil Karia, Founder, Schbang, said that Indian agencies that serve high-profile clients in India are looking at small and mid-tier clients in the international markets.

Speaking on behalf of Schbang, catering to foreign brands provides access to a certain kind of talent that we get to work with within the market to strengthen our own processes. It also allows Indian talent to work with a diverse set of clients,” Karia said. 

For DViO Digital, India accounts for 50% of its total revenue, and the other 50% comes from UAE and Southeast Asia.

Vivek Kumar Anand, Director- Business and Innovation, DViO Digital, stated that the most crucial factor for them is to venture into new markets, sectors and service lines to mitigate the market risk and secure their future. 

“Being a multi-country operation helps us reduce the volatility and socio-economic uncertainties of markets (like during Covid). We at DViO are very particular about the market we want to penetrate, and the currency's value is something we look at last. It is imperative to understand the synergy of the market, our capabilities and what it could mean for us and then comes the profitability, executability and growth potential,” said Anand. 

Anuraj Gupta

Anuraj Gupta, SVP- Business Alliance, LS Digital, said that Indian agencies are looking at foreign brands because of better remuneration. He said that the industry is mirroring the growth of India’s IT sector which started decades ago. 

“Developing nations always catch the eye of the world, the kind of population that India houses - in terms of the number of people who are technologically educated - is tremendous. All the brands that are global have come to India and become ‘glocal’. The globe looks at India as a good offshoring delivery partner. So, it is always lucrative for Indian agencies also to serve global brands and it is easy for us to do so because global brands are also accepting us,” Gupta said. 

Vivek Shah

Vivek Shah, Partner and Performance Lead, Django Digital, said that while better remuneration is a factor, it is also a win-win situation for both the global brands and the agencies. “Brands would be paying lesser for the same services when outsourced to Indian agencies, and in return, the agencies can charge a comparatively higher fee. It provides global exposure to agencies, which also allows Indian agencies to expand their footprint and also get a deeper understanding of the international market,” he added. 

Which international markets can Indian agencies make waves at? 

Many Indian digital agencies are expanding internationally. While some agencies are working actively towards expanding to international markets like the US and Europe, others see the MENA region as the one which will be driving the growth for the Indian agencies. 

According to Anand of DViO Digital, Africa, Australia and Israel are the next big markets. “Africa presents a large consumer market largely untapped by digital marketing agencies. In addition, its economies are also growing along with internet and mobile penetration, and businesses are increasingly turning to digital marketing to reach consumers along with internet and mobile penetration. Australia has a mature digital marketing industry and a large consumer market. Additionally, Australia has a high standard of living, and businesses are willing to invest in digital marketing to reach consumers. On the other hand, Israel is known for its high-tech industry, and start-up culture and digital marketing agencies can benefit from the innovation happening in the country and leverage it to improve their services.” 

Shah of Django Digital said, “The US is always going to be one of the most lucrative markets, followed by Europe, however, the Middle East has definitely seen a surge in their digital marketing landscape.”

Karia of Schbang said that while all parts of the world are going through digitisation per se, his agency will focus on expansion in Europe and the Middle East.

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