Thursday, June 26, 2008

Sales and Marketing Process Outsourcing – Sales Pitch

Sales and Marketing Process Outsourcing (SMPO)

Top Reasons, why companies outside India and companies in India should outsource their Marketing, Communication, Lead generation and Demand Automation programs to India.

In today’s fast-changing, technology driven, digital media marketing landscape, the management of marketing function in organizations has become global. Now most of the marketing is done through new online, on-demand tools which can be used from anywhere across the world. Software as a Service model is steadily growing into organizations worldwide enhancing the online execution capacity of organizations. Also, these collaboration tools allow today’s marketers to sit in any part of world and deliver the same metrics which there counterparts in US or UK would be doing.

So why pay more? – May be language and cultural tone can pose barriers for companies outside India, however, this is a myth, as many of the organizations outside India have a good 20% staff which is Indian. Indians deliver far more superior quality of work than their US counterparts.

Companies outside India - Business Case for Marketing Outsourcing

Pay less and get more - An average email marketer in US or UK costs around USD 40 - 60K / Euro 25K - 40K annually. However in India you can get the same for 15-20K Euros. This person would be not just an email marketer but more than that. You would notice a higher level or business acumen and strong fundamentals in business.

Risk Mitigation
– Considering you have low cost resources available, you can have more resources at the same time with lower cost and you will deliver much better results. Also, in case of attrition, you can still work efficiently as you had built redundancy.

Strong Talent Pool
– A very strong talent pool is available in India. Not just that Indians are quick learners but also they ramp up their skills very fast. And due to a large population and stress given on education its always easy to get the right person who fits the bill.


Companies in India

From my experience in India. Most of the marketing departments anyways outsource there marketing activities partially to the agencies. However, due to lack of agencies which can provide integrated marketing which can cover Traditional and Digital marketing both, its very hard to retain one vendor.

Also, many small and medium enterprises hire people at low cost and the end product is shabby. In today's time if one individual was to know everything in the marketing domain with deep understanding of various media, buying behaviour and negotiations, agencies wouldn't have existed at all. However, this is not true. Hence, you need an agency which can deliver exactly what you need.

With a brilliant planning, media buying, creativity you also need a strong execution backbone and one think tank which looks ahead and keeps a track of market, competitors and more.

Mostly agencies do that and if they are not doing it yet, they should dedicate their resources in doing that.

With a setup like this, I see that the agencies can provide a detailed end to end branding and marketing setup to organizations. Also, the agencies need to come up with low cost marketing techniques to help the SME segment.

Today online media provides Low Cost Marketing solutions and that is what the Agencies need to look at. Coming up with market segmentation and offerings for low budget and high budget customers.

At last, I would say its always beneficial to outsource a majority of execution to an agency and spend more time in analysis and planning in house. A complete SMPO or Sales and Marketing Process Outsourcing company can come handy in India.

1 comment:

Alex said...

The post is very good and informative about sales and marketing outsourcing. It is clearly stating the reasons and stressing the necessity and advantages of marketing outsourcing and sales outsourcing.

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