Why financial companies outsource their marketing departments

Each of us has some personal experience that determines our attitude to this or that issue. For example, many financial companies outsource their marketing departments to hired outsourcing specialists to perform certain works. Guided by their personal experience, they will ardently defend their position. In this article we will review why it is beneficial to outsource marketing departments and why financial companies do it.

What is outsourcing in simple words?

Outsourcing is the transfer of a number of marketing functions on the basis of a long-term contract. Provision of one-time that are one-time, episodic, random and limited to the beginning and end – is not called outsourcing.

It is simply contract work that must be performed under the guidance of a full-time marketing manager – the moderator of all marketing management in the company. 

The benefits of marketing outsourcing

Often, not wanting to delve deeply into the tasks of marketing or believing that there are more important tasks, managers give marketing in one form or another to outsourcing. For many, this transfer of competences works. However, as a key point, it is worth noting that the outsourcing team always sells its experience, limiting the customer by the scale of the experience and the competence of the team.

Do not assume that outsourcers will do more than what is written in their contract and stipulated by the scope of work.

The outsourcing team is cost effective

Outsourcing allows the company to save costs on the maintenance and management of the marketing department in the company and to concentrate on the main business processes. Rational benefits also include reduction of expenses for office rent, social insurance, payroll taxes and others with high quality results.

We can provide a clear example of the efficiency of outsourcing. According to https://topforextradingbrokers.com/ outsourcing their marketing department brought great results, in terms of ranking and popularity, because the hired team was more qualified and experienced.

All this is not unambiguous. The outsourcing marketing team, in addition to the need to pay for working time for specialists, requires all the same expenses for renting premises. Specialists will be accommodated at home or in the office. All this should be paid for. The outsourcing team contains an accountant and a manager, and this also falls on the shoulders of the customer and is included in the cost of services. In addition, such an outsourcing team is the center of profit generation for its owner, which reduces your profit.

The customer cannot afford specialists of such a high level than that of the outsourcer

Another confirmation of the reasonableness of marketing outsourcing is the shortage of highly qualified marketing specialists and the fact that highly qualified specialists in financial companies simply will not come to the customer to work on a one-time project or low salary.

A highly qualified specialist, working for an outsourcer, simultaneously conducts several projects, which means that, with all his experience, he pays you no more of his working time, but knowledge, experience and attention may not be completely transferred to you. Now imagine that such a specialist pays more attention to another parallel project than to you, since another project is more economically profitable for the manager or is simply more interesting to him than yours.

It is also possible to involve third-party specialists in solving common marketing problems that do not require purely special competencies. This is often beneficial from an economic point of view if the need for this type of work arises sporadically, at intervals. If you can load a full-time specialist with work all 8 hours a day, take a full-time one. If the economics of the project allows you to pay for the full-time, even if it will just sit for 80% of the working time, take the full-time one. In other cases, a marketing outsourcer is simply more economically profitable.

If the amount of work cannot be completed by one full-time employee within the time allotted by the project, hire an outsourcer, provided that the only full-time specialist will be the coordinator and moderator of the work of the other outsourcers. Such a scheme is the most effective for conducting quantitative research, booking and conducting promotions in retail outlets.

Outsourcing marketing is definitely preferable if your project is one-time, temporary or the initial phase of your project development: trial marketing or start-up project.

Author: Editorial Team

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