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Outsourcing Challenges

January 26, 2011

As we shared earlier this week, digitalArbor recently concluded a survey of marketers and agency executives at agencies and corporations across the United States.

79% of respondents have outsourced digital production, with the majority of work being completed domestically.

When asked about issues, many respondents experienced significant challenges in the process. Timing, and issues with time-consuming mistakes, leading to trouble meeting key client deadlines, was the number one challenge that 57% of respondents said have experienced, followed by quality issues (35%) and partners that didn’t truly understand the business’ needs or processes (29%).

We also asked what respondents looked for in a outsourced partner. Interestingly, although missed timing was considered the biggest challenge, fastturnaround was NOT considered one of the most important attributes of an outsourced digital production provider. This suggests that while “speed” is not an initial priority, many marketers and agency executives have been frustrated with their outsourcing partners’ effectiveness after delays, missed deadlines or similar issue occurs.

An overwhelming majority of respondents (89%) indicated that lack of in-house resources was the primary reason for outsourcing digital production projects, with very few indicating that shifting budgets to strategic resources (6%) or improving agency margins (5%) were primary drivers.

We’ll explore the 2011 digital production outsourcing outlook later this week. Stay tuned!

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