5 Tips for Successfully Outsourcing Marketing Functions
Outsourcing is a complex decision for most international trade professionals because it becomes an unintentionally politically charged topic. However, it still remains as a massively successful strategy for many companies. There are multiple ways you can outsource successfully, with most of this approaching arising from good research, and properly weighing your options.
First, Figure Out if Outsourcing Makes Sense for You
The goal of outsourcing is to take work that could be done in house to another company. There are many benefits to this, but the negatives may make you dismiss this idea altogether. For example, a small company may find outsourcing too expensive, complex, or too demanding for financial and personal resources. However, when successfully implemented, outsourcing allows a company to lower operational and labor costs, access better technology, free up assets, and move production to world markets.
Understand That Outsourcing Doesn’t Always Equal Asia
Most people who think about outsourcing think of China as their option due to the wide market of companies, talent, technologies, and resources. It’s a manufacturing giant, and one to consider when looking to outsource. However, what blocks North American and European investors from setting up in China is its difficulty. Many foreign companies are required to establish joint ventures with domestic Chinese companies to even be considered. Instead, consider local outsourcing agencies like Clay.Global, whose head office is in San Francisco.
Outsourcing Makes Sense for Small Companies and New Markets
Small companies likely lack resources to outsource, but employing it can test market viability, speed market projection, and engage in contingent labor. Outsourcing has even become popular for non-profits and universities because it allows them to test marketing and teaching strategies. For many small companies, the risk can be astronomical because your resources are smaller but allowing another company to figure out your market and potential customer base. After your company starts to see profits, that’s when you use outsourcing to its fullest potential.
Outsourcing Distribution VS Distance From Customers
Although outsourcing provides a valuable market to scope out potential customers, at the same time, it separates you from your domestic customer base and can cost you data and opportunities. Even if you use more than one country as the middle-man for your products or services, you still miss out on large markets. Having a foreign distributor means you need to know your domestic market unless you’re content selling specifically to an international one. The best possible combination is a main office in your home country with a market research department and a distributer in one or more foreign countries.
Make a Decision Based on Individual Priorities
As an employer, it could reflect poorly on your business if you intentionally use an outsourcing company that mistreats its workers. Although each company should make a decision based on its own internal priorities, avoid sacrificing the well being of others for profits. If a company is a third party that provides cost-effective labor, fewer taxes, and less regulation than it can only benefit the company long term – but always do research that your workers are being paid fairly, have health insurance, and reflect a positive image.
As the world becomes more globalized, third party manufacturing will undoubtedly increase to have access to larger markets. The extent of these opportunities have yet to be determined, but with a base at home and in a foreign country, it’s possible to extend your profit margin, while employing more qualified individuals all over the world.
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