Small IT firms outsource marketing

Small and medium IT firms (SMBs) are opting to outsource their key marketing functions like making pitch documents, lead generation and power point presentations. Even reverse outsourcing is taking its course as they are also marketing their products through local agencies in the U.S.

This new trend is becoming popular among the startups who are on the lookout for potential buyers and investors. Apart from the startups, many VCs and PEs are approaching outsourced Chief Marketing Officers for their company portfolios. As reported in Economic Times, Gaurav Gupta of Everest Group, says, "Outsourcing is catching up in telemarketing and analytics, particularly in financial services sector like credit cards, insurance and the like. Even captives of i-banks, for instance, bring to offshore tasks like pitch documents, power points, analytics and marketing support."

 

This has indeed opened a huge business opportunity for the service providers who are targeting small enterprises lacking in bandwidth or the ones who cannot afford a high-cost full time marketing resource. Vinod Harith, chief marketing officer (CMO), Founder, Director of Axis offers to build and run a company's annual marketing calendar. Tracking the same point, Vijay Menon a freelance CMO says, "These enterprises may not be able to derive benefits from hiring a full-time CMO, who may come at a salary level bill of up to Rs.50 lakh per annum."

In the global scenario, demand for outsourcing is seen for companies in the $20 million-$100 million range, and the biggest challenge for these companies would be building a brand. Srini Rajam, CEO, Ittiam Systems, makes a clear distinction between marketing and branding. Marketing becomes the fulcrum of any organization in deciding the road map as well as the genesis of product and services. Some parts of branding activity could be outsourced especially when a product is being taken to the market, he adds.