The BPO industry is rapidly evolving, with more than 60% companies across the globe opting to outsource their non-core business operations to third party service providers. Most of the outsourcing firms, in order to align their business with changing the expectation of the clients, are designing industry-specific technology solutions to stand-out from their competitors. Hence, contracting out marketing services is expected to play a vital role in the IT services.
What exactly is Outsourced Marketing?
In this concept, an enterprise outsources its marketing functions to a third party service provider. The service includes research, planning, strategy, management and execution of activities like public relations, advertising, direct marketing, web-marketing, internal communication, as well as media buying and printing.
Companies of all sizes looking for end-to-end seamless, sustainable and strategic marketing services benefit from the professional expertise of service providers.
Difference between traditional marketing and outsourced marketing
The traditional marketing involves following features:
1. Maintaining professional relationships with multiple people like employees, clients and other business associate.
2. Numerous vendors are involved in the process.
3. Bills are generated multiple times, according to the number projects undertaken.
4. Institutional knowledge is shared with a single vendor at a given time.
5. Management and integration are done by the client itself.
On the other hand, the various feature of outsourced marketing area:
1. Companies only need to maintain a professional relationship with the service provider
2. Only a single vendor is involved in the process
3. One bill is generated from the services availed
4. Institutional knowledge is passed only once
5. Management and integration is either co-managed by both the companies, or are handled by the outsourcing firm.
Hence, it looks more profitable for the companies with complex business structure to outsource its marketing function to a professional business.
Advantages of marketing outsourcing
- Improves Efficiency: Even though companies have their own marketing department, outsourcing can help them focus on their core competencies.
- Reduces Costs: By involving an outsourcing firm, companies can reduce or avoid additional overhead costs required for handling the projects in-house.
- Media Neutrality: While traditional agencies only exist to produce marketing collaterals and maintain public relations; outsourced agency identify and deploys resources that are required to match a company's goals and objectives, within their budget.
- Maintains pace and momentum: Outsourcing marketing functions to a service provider helps the firm to avoid any economic or business fluctuation, while leveraging the benefits of access to a talented pool of professionals.
For all these reasons, more and more companies are engaging business process outsourcing companies to increase their business efficiency and growth while reaching a large audience.