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With
all the noise about outsourcing, there's been a deafening silence about one
issue. The Big Elephant on the Table that nobody talking about is, in this
case, an Indian elephant. Carrying a payload of marketing
talent.
This
"Indian Summer" issue might have been devoted to the hot, humid days
in September. Instead, I'll be discussing this summer's lessons in working
with marketing's Big Elephant. Cutting to the
chase: it's not easy, but it really can work.
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Take-Aways
Outsourcing
parts of the Marketing function to India can work cheaply and effectively,
but only if well- managed.
If
you already have an engineering operation in India with a strong manager,
you can add a product manager and other marketing people who need to
interact with engineering as part of their job. These people should be
employees, and report into the US-based marketing VP even though
"hosted" by in-country managers..
If
you don't have an Indian operation already, you will have to work through a
network of agencies. As none of these people, even the project manager
in the US, will be an employee, you need to be very selective and manage
them on a short "leash."
Do
in India the things that take a lot of time, effort and abstract brainpower.
However, finesse, cultural understanding, and savvy cannot be outsourced or
offshored. Even the most wildly successful outsourcing would
require constant guidance and spin-control from a marketing leader at
headquarters.
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Caveats
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All
the things that can go wrong with engineering and call center
outsourcing can go wrong with marketing, too. Tight project
management is everything.
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Offshore
marketing can't adapt to rapidly changing conditions. Do not
offshore if you need flexibility, or if market conditions or company situation aren't stable (e.g.,
hypergrowth)
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Marketing
is more art than science, so finding (and keeping) the right talent for
marketers is harder than it is for engineers. Expect to travel
to India at least every 6 months.
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Almost
by definition, an outsourced Marketer cannot be close to the sales
team. This is a major limiter to the scope and effectiveness of
offshore marketing.
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Watch
out not just for language barriers, but for thought barriers as
well. Cultural match is critical to marketing effectiveness.
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India's
timezone is between 12-1/2 and 15-1/2 hours away. Some Indians
will work pure US hours, but the senior talent won't.
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India
has a strong work ethic, but it is different from ours. At
first, expect to do some micro-managing.
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Many Indians are over-eager to please and do not use the word "no," or
"I can't" often enough. Beware over-optimism and check that
early assertions are true later in the project.
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There
is a growing shortage of talent in Bangalore. Turnover of 25% /
year -- with related wage hikes -- is happening in call centers
right now.
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Best Practices
Your
Indian manager -- whether an employee there or a project manager here -- is
the king pin. Make sure you have the right guy before you start, and
that he has a strong network in country. Hiring/ firing/managing
skills are crucial.
Keep
all consultants and in-country agencies on a very short leash. Require
weekly metrics, not just status reports...and contractual penalties if
deadlines are missed.
Hire very selectively but be aware that the particular domain
expertise you need may not be available at any price in India. Take
the time to train -- it's cheap, and it will pay off.
Indian
marketers often know the Asian and Australian markets well, but that knowledge doesn't really apply to the US. Look for people
who have worked in your industry in the US before.
Make
sure to get a fixed price contract, or clear stipulations of "no
unauthorized overtime" if it's time-and-materials. Also,
stipulate that you're getting only the individuals you approve of, to
avoid substitutions.
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The Two Sailing Routes to India
As
you've read here and sensed everywhere, the level of Marketing spend is always an
issue. And the spend issue is usually the wrong one. The key
is to lower the cost
of customer acquisition -- if you achieve that, any marketing spend
level is a bargain.
That
said, it never hurts to get efficiencies.
If
your company already has an engineering operation in India, you can
embark on the direct sailing route to Indian marketing. If your Indian
engineering operation is working well, it will have infrastructure in place, local
employees, and a manager who (typically) has a history and ties with your US
engineering team. Assuming the engineering manager is
flexible, it can be
quite natural to add product management to the Indian engineering group. If that
goes well and the product manager has some people-management skills, the next
step is to add some local "marketing service" talent such as graphic
arts, web design, demo creation, market research, or competitive analysis. These roles often have to interact
with engineering anyway, and do not involve a lot of business savvy or finesse in language
skills.
But
for this strategy to really work, the local
manager must be your employee that oversees the whole overseas operation.
If
your company has no operation in India, you need to choose the indirect
route: finding, recruiting, and managing a US-based agent to be the
project manager. While a bunch of companies are in the "business process outsourcing"
arena, you must be very selective. The company must be capable of US-based
project management: designing the work,
selecting in-country
talent, monitoring progress, and being "editor in chief" for all parts of the
project. The project manager must work with you on a daily basis (at least
at the beginning), so (s)he must be local. Make sure your project manager has no more than two
other clients: overload is a frequent cause of problems.
Since you'll live and die by the
performance of the project manager, (s)he must be a trusted partner from the beginning. Even if
(s)he is a terrific person, they must
have access to a network of quality marketing talent in India. Test
them on this before you sign then up.
The
starting point for your Indian team can be market research, competitive
analysis, statistical analysis (such as SFA or CRM crunching), graphics, web
design, or telemarketing. Each of these things can serve as your pilot project to make sure your
measurement and management are up to snuff. From there, if you're lucky, the outsource work
can grow into drafting marketing documents.
Picky,
picky, picky: persuasiveness, quality, and finesse
Looking
at this from the perspective of headquarters, the offshore resources are service organizations
to the main marketing department. They are managed and measured just as
you would an agency -- with tighter controls and dramatically less cost.
However, unlike any agency, you must invest time to interview and
evaluate the in-country personnel.
Realistically,
you have to adjust your expectations about finesse. Marketing is,
at bottom, all about the art of persuasion -- with a special emphasis on listening and
adapting to customer input. While India can offer plenty of brainpower and
brute-force talent, it is very rare to find people who
understand our culture deeply enough to create persuasive communicators for the US
marketplace. Further, their education system encourages a writing
style that is understated or even unassertive (by high-tech standards). While it is possible to do some
outbound marketing / customer
persuasion with Indian marketers, it requires perfection in recruiting and is
still less effective than you'd hope.
To be effective, all outsourced marketing,
regardless of country, must be "architected," guided, and polished by
seasoned marketing leadership back at headquarters. Expect to have daily (nightly) phone
calls and document review sessions: you will need 100% quality control for a
while. If
you work with a very short leash, the low costs of Indian talent let you achieve
quality by doing more revisions.
That
said, don't drive yourself (or your team) crazy with perfectionism. Of course quality is
important, but it doesn't really matter if there is a stylistic error in a
webinar invitation email. Given the choice, I'll take 90% quality with double
the output for the same cost -- because I'll get more prospects and sales cycles
that way. Always watch your schedules -- as with any remotely managed
resource, you can't take the calendar for granted.
With
that, I have to return to my opening argument: saving money on marketing
in and of itself isn't good business. Even the most well-managed Indian
marketing operation by itself will not lower the cost of customer acquisition or
improve the fortunes of your business.
Instead,
you need to optimize for overall business leverage...with the resources working
wherever they are.
Quality & Stability vs
Features -- coming in October
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