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Trinity Mirror cuts costs with IT outsourcing

Anh Nguyen | July 30, 2014
Trinity Mirror has revealed that outsourcing IT support and services functions have helped drive savings of £6 million in the first half of the year.

Trinity Mirror has revealed that outsourcing IT support and services functions have helped drive savings of £6 million in the first half of the year.

The newspaper publisher confirmed in January that it was outsourcing its Glasgow-based IT service desk function to service desk provider Endava in Cluj, Romania from March.

While the outsourcing has contributed to savings, the company was not able to avert a fall in pre-tax profit of 2.2 percent to £48.2 million in the 26 weeks to 29 June 2014.

"Operating costs fell by £5.7 million reflecting the benefit of structural cost savings of £6 million and ongoing cost mitigation actions which have more than offset increased investment in digital of £3 million and inflationary price increases," Trinity Mirror said in its results today.

"Structural cost savings in the first half have been delivered through the outsourcing of IT support and services functions, the restructure of editorial and advertising functions, the closure of the Reading print plant and a number of smaller offices and continued restructuring of all operating functions."

Digital investment

As well as cutting costs, Trinity Mirror has been working on building its digital business. For example, it hired Yahoo's MD for UK and Ireland, James Wildman, who joined in June as chief revenue officer of the National Advertising Sales Agency (NASA) division of Trinity Mirror.

The publisher said that its £3 million investment in digital had driven significant growth in average monthly unique users (91 percent to 61.3 million) and average monthly page views (132 percent to 440.2 million) across the web, mobile and apps, particularly for Mirror.co.uk. Meanwhile, its publishing digital revenue grew by almost 50 percent.

"We continue to refresh our websites to increase user engagement whilst ensuring we can drive revenues through a range of advertising formats," Trinity Mirror said.

In addition, in its regional markets, having a centralised technology platform has enabled Trinity Mirror to launch new publications across multiple channels more easily.

"Our group wide technology platform gives us the capability to add new products on multiple platforms with a minimal increase in costs or resource," Trinity Mirror said.

"One such example is the recent successful launch of the Sunday Echo in Liverpool, which has allowed us to increase our audience on a Sunday both in print and online through the provision of more comprehensive football content."

Trinity Mirror also said it is investing in increasing the quality and volume of video across its websites, as this channel brings in the highest revenue per thousand views.

In 2011, Trinity Mirror switched to Google Apps for email, collaboration and documents.

The following year, it rolled out its £1 million, internally-developed Advanced Recruitment Technology (ART) across its jobs sites portfolio, which includes Fish4jobs, GAAPweb, SecsintheCity, PlanetRecruit and TotallyLegal.

Trinity Mirror Digital Recruitment's ART is an enterprise-grade Java platform, hosted in the Amazon cloud, with new job recruitment features in social media, mobile and search.

 

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