Deciding whether to outsource marketing functions is a strategic choice that varies depending on the company. The role of managers and chief marketing officers is to determine whether outsourced marketing can help your organization for the short- or long-term. While startups and SMEs often find outsourcing necessary, larger, well-established organizations may already have internal marketing departments in place to handle brand promotion and strategic direction.

However, many companies choose to outsource non-core marketing activities to varying degrees, such as social media management and content development. The key lies in identifying which functions can be more effectively performed by a third party, if any. Additionally, it is essential to consider the type of outsourcing engagement required. Are you seeking end-to-end management of marketing services or the management of a specific marketing function? Whether your need is to scale up due to increased marketing activities or to access specialized expertise and resources.

The following guideline can assist you in making an informed decision:

1. Do you need outside expertise?

The marketing function requires multiple experts that may include communication professionals, research analysts, product specialists, content developers, digital marketing experts and others. Many organizations lack expertise at one time or another due to the unavailability of skilled talent or inadequate staffing. In this case, it’s a sound idea to work with a third party that can fill the talent gap in your organization.

2. Do you require enhanced technology?

Many marketing companies struggle with incompatible technologies and outdated systems, hindering their ability to execute promotion strategies effectively. Even companies in the high-technology sector may find that their marketing departments are not prioritized for technological upgrades. Developing the required applications or infrastructure internally can be excessively costly. An alternative solution is to collaborate with a marketing service provider that already possesses the necessary tools to optimize your marketing department’s performance.

3. Do you seek greater flexibility?

Marketing companies must constantly adapt to a rapidly evolving market to stay competitive. Unforeseen changes, such as shifts in customer demographics or sudden surges in volume requiring additional resources, can strain internal marketing departments. Outsourcing specific marketing functions can offer organizations greater flexibility in terms of scalability and adapting to such changes. Partnering with a third party during critical periods of transformation can help control costs (including hidden expenses), mitigate risks, and provide access to resources that may be lacking on a temporary basis.

4. Do you require access to industry best practices?

If you suspect that your internal marketing capabilities may be lacking, partnering with a service provider can enhance process efficiency and grant your organization access to industry best practices. Marketing service providers have amassed valuable experience working with diverse companies, enabling them to leverage the right technology, skilled personnel, extensive industry partnerships, and optimized process flows that give your company a competitive edge.

5. Do you need to scale up or expand rapidly?

Organizations aiming to swiftly bring products and services to the market often require additional support in terms of personnel, technology, and efficient processes. While it is possible to build these capabilities internally, it often demands substantial time and financial resources. Engaging with a marketing expert not only offers a more cost-effective solution but also expedites the product’s entry into the market. However, it is vital to establish a knowledge transfer system after the outsourcing contract concludes to maximize the benefits derived from the partnership.

6. Is it imperative to handle a specific marketing function internally?

Marketing department staff members undertake diverse roles, some of which, such as buyer demographics/segment analysis, product pricing, and data-driven operational improvements, play a strategic role within the organization. Other responsibilities, such as event planning and digital content management, while crucial, can be delegated to a trusted third-party provider. Chief Marketing Officers (CMOs) must assess whether a particular marketing function would be better executed by an external expert and consider outsourcing accordingly.

Benefits of Outsourced Marketing

Outsourced marketing engagements, when effectively managed, can serve as a powerful catalyst for transformation. Marketing service providers typically offer a broader range of capabilities and possess more resources compared to non-specialized marketing departments. This leads to enhanced services delivered at a lower cost. For larger companies with established, efficient marketing departments, outsourcing can foster innovation and provide a competitive edge. On the other hand, for startups and smaller organizations that may lack internal marketing expertise, partnering with an agency for outsourced marketing can level the playing field and enable them to compete effectively.

Other benefits of outsourced marketing include:

Enhanced Focus

By outsourcing non-core but essential marketing functions, your internal marketing staff gains valuable time to focus on core activities that drive your marketing efforts, such as performance analytics and strategic improvements. This enables startups to prioritize product development and expedite their market entry.

Cost Efficiency

Engaging a comprehensive marketing service from a third-party provider can significantly reduce overall costs compared to hiring a full-time, high-level marketing professional. You gain access to a team of marketing experts without the substantial expenses associated with software, office space, equipment, and infrastructure.

Expanded Talent Pool

 In-house marketing departments may not always possess the necessary skills or resources for complex or large-scale projects. Partnering with a service provider allows your organization to augment your internal team with experienced and talented marketing professionals who seamlessly integrate into your operations.

Transparency

When collaborating with the right outsourced marketing provider, you retain full access to internal data, knowledge databases, and intellectual property without any hidden fees or restrictions.

Customized Solutions

Unlike internal marketing departments that primarily focus on brand promotion regardless of current organizational needs, an outsourced team is tailored to your specific requirements, strategic goals, and budget. This ensures that resources and talent are allocated precisely where they are needed most.

Objective Perspective

An outsourced marketing team brings an external and objective viewpoint to enrich the marketing process. Working solely with an internal marketing staff can sometimes lead to a narrow focus and overlook customer perspectives and alternative strategies. Leveraging an outsourced team introduces fresh insights and diverse perspectives to drive innovative marketing approaches.

Investing in Marketing Outsourcing

With its many advantages, outsourced marketing seems like a logical decision for every organization. However, the impact of the same outsourcing engagement can vary widely depending on the company and its goals. This is why it is important to conduct a thorough internal and external evaluation to determine if a marketing function can be improved if performed by a third party.

One key aspect for maximizing the benefits of outsourcing is focusing on what your company excels at—the very reason you established your business. If your strength lies in developing and designing mobile applications, for instance, it’s crucial to concentrate on that area while entrusting other competent team members with their respective strengths.

Investing in outsourced marketing provides access to an entire team of marketing experts, along with the necessary technology and best practices, at a significantly lower cost compared to recruiting and supporting individual marketing staff members. Building an internal marketing team is not only expensive, but it can also be time-consuming, particularly when seeking top-level talent. Outsourcing marketing functions enables you to promptly acquire the talent, technology, and processes needed to scale up or down effortlessly and adapt to evolving customer demands and market dynamics.

Choosing the right provider is another critical factor for success. While any competent service provider can support your marketing efforts with talent and technology, it is crucial to seek out a qualified and experienced vendor that prioritizes value and innovation. Look for a marketing firm that establishes a long-term partnership guided by strategy and aligned with your business goals, striving to improve processes comprehensively.

To achieve even greater cost savings without compromising service quality, consider collaborating with an offshore marketing service provider. By leveraging lower labor and operating costs, offshore vendors can significantly reduce your overall marketing expenses.

To learn more about outsourcing, you can read our Top 8 Qualities of an Outsourcing Company in the Philippines article. We invite you to follow us on social media and to visit our website to learn more about our services.

About Us: Sourcefit is a widely recognized US-managed business process outsourcing company based in Manila, Philippines. We proudly serve over 100 clients with a workforce of more than 1,300 employees. Our global centers can serve multiple markets, and our staff is highly proficient in English, Spanish, French, and Portuguese. Whether you need a few or many employees, we can help you achieve your business goals and build high-quality offshore teams.

Latest Awards

Sourcefit’s commitment to excellence has been recognized through numerous industry awards and certifications.

We recently received the Fortress Cyber Security Award from the Business Intelligence Group. Sourcefit was also honored with the prestigious recognition of Best Outsourcing Solutions Provider in the Philippines during the 2023 Business Excellence Awards.

Other awards include: FT ranking of 500 high-growth Asia-Pacific, The Marketing Excellence Awards, Inquirer Growth Champion,  HR Asia Awards, among others.

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