Outsourcing in Marketing and Sales
September 7th, 2009
As investment firms react to the new post-crisis environment, one of the issues they will need to address is what they should outsource. I have no doubt that outsourcing will continue to increase in the industry as firms will be reluctant to staff up with full time help to the degree they have in the past, as managers will be cautious to increase their fixed costs.
In the sales area, the outsourced solution is third party marketing. These businesses should continue to serve small managers and alternatives firms, but whether their use with larger traditional firms becomes more popular is unclear.
I see the largest potential increase in outsourcing in the marketing area. There are now quality resources available on an outsourced basis in RFP production, data base population, all forms of writing and communications, presentation design, website design, and various other elements of the marketing process. Managers should consider these variable cost solutions to their marketing needs carefully before restaffing with full time employees.
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Shanna Squires | September 9th, 2009 at 8:06 PM
Yes, I agree that marketing outsourcing will continue to gain traction among investment managers.
Outsourcing certain functions, such as advertising and public relations, is common in industry. However, outsourcing on a broader scale is a relatively new concept, and one that is growing in popularity. Recent market conditions and events have exerted extreme pressure on firms to become – or remain – profitable. Against this backdrop firms have largely been forced to downsize, leaving most to operate on lean – if not skeletal – marketing budgets and staff.
But smart firms know that in tough times, marketing efforts are more important than ever. Enter marketing outsourcing.
Firms can outsource the full gamut of marketing efforts to highly skilled consultants and freelancers, balancing limited budgets and effective marketing. Advantages of outsourcing include:
1) Improved Focus. Firms can position staff to concentrate on the business of managing money without the distraction of marketing responsibilities.
2) Financial Benefit. Outsourcing is less expensive (a fraction of the cost, actually) of hiring, training and managing a full-time employee, presenting an extremely attractive ROI.
3) Outside Perspective. Consultants bring fresh, objective ideas to the table.
4) Valuable Expertise. Specialists in specific areas of marketing, such as writing or graphic design, consultants offer distinct skills necessary to help a firm stand out in the crowd.
As firms decide how to move forward, I anticipate many will find outsourcing marketing to be very good business sense, both in the near and long term.
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