7 Reasons to Outsource Your Marketing

New research highlighting key lessons in how UK SMEs can succeed in challenging times proves interesting reading.

Of the many findings of research, undertaken by accountancy firm Kingston Smith in conjunction with the University of Surrey, it discovered:

Successful SMEs have the flexibility to adapt to changing market conditions and that outsourcing helps them achieve this flexibility.”

But is outsourcing only an option when times are ‘challenging’?

Clearly not - a New York Times article published before the start of the current downturn argued that many businesses do not thoroughly understand the benefits of outsourcing. Of course there are cost savings, but undertaken effectively outsourcing can provide a number of long-term benefits:

1  Control of capital costs
Outsourcing converts fixed costs into variable costs and releases capital for investment elsewhere in your business.  It also allows you to avoid large expenditures in the early stages of your business. Outsourcing can also make your firm more attractive to investors, as you are able to pump more capital directly into revenue-producing activities.

Increase efficiency 
The higher costs associated with undertaking all your activity internally has to be eventually passed onto your customers.  Utilising an external marketing provider’s cost structure and economies of scale can help you gain an important competitive advantage.

Reduce recruitment costs 
Recruiting and training staff, even for a short term project, can be very expensive and time consuming.   Outsourcing to an experienced provider lets you focus your human resources where you need them most.

Start new projects quickly
A good marketing firm has the resources and experience to start a project right away. Handling the same project in-house might involve taking weeks or months to hire the right people, train them, and provide the support (and benefits!) they need.

Focus on your core business 
Every business has limited resources and every successful business owner knows the secret to success is delegation.  Outsourcing can help your business to shift its focus from peripheral activities toward work that serves the customer; and it can help you focus on activities where you can add value to the business.

Level the playing field 
Most small firms simply can't afford to match the in-house support services that much larger companies maintain. Outsourcing can help small firms act ‘big’ by giving them access to the same economies of scale, efficiency, and expertise that large companies enjoy.

Reduce risk 
All businesses are exposed to risk.  Markets, competition, government regulations, financial conditions, and technologies all change very quickly. Good outsourced providers assume and manage this risk for you, and they generally are much better at deciding how to avoid risk in their areas of expertise.

So the key to success for SME’s seem to lie in outsourcing their marketing activity.  However there is a word of caution within the Kingston Smith commissioned research.  Specifically, outsourcing to providers who do not identify with your business:

‘Hence, it is essential to outsource to people who have the same work ethic and work approach and appreciation of the brand that you are trying to build.’


Acknowledgments: Kingston Smith, University of Surrey, New York Times

Posted by: Nimish Sawjani on Nov 27, 2012
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