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THE TABER REPORT
The Voice of Effective Marketing


     unsubscribeTaberConsultingsubscribepast issuesSeptember 2004

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. 

  

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.  

Caveats
                         

  • All the things that can go wrong with engineering and call center outsourcing can go wrong with marketing, too.  Tight project management is everything.

  • 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)

  • 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.

  • 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.

  • Watch out not just for language barriers, but for thought barriers as well.  Cultural match is critical to marketing effectiveness.

  • 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.

  • India has a strong work ethic, but it is different from ours.  At first, expect to do some micro-managing.

  • 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.

  • There is a growing shortage of talent in Bangalore.  Turnover of 25% / year -- with related wage hikes -- is happening in call centers right now.

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.

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 IndiaTest 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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David Taber

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