Marketing process outsourcing, the next wave in BPO

December 23, 2011: In the big outsourcing business which consists of Business Process Outsourcing (BPO), Knowledge Process Outsourcing (KPO) and Legal Process Outsourcing (LPO), new segment is now being added, which is Marketing Process Outsourcing or the MPO. Most of the organizations have realized that outsourcing accelerates, standardizes and automates routine marketing and that has resulted in lot of marketing work being outsourced to third party service providers.

According to Vinod Harith, founder of CMO Axis Outsourcing Services, the rationale behind marketing process outsourcing is that clients do not have to deal with different firms, for instance, Web Design Company, online marketing company, etc; all they have to do is to is to deal with one agent who handles all these functions.. He says that his company has been operating in the domain for the past four years and claims that it is the first of its kind in India. He added that they target the bottom of the pyramid which itself presents multibillion dollar business. The company expects to achieve $1.5 million in revenue by March 2012 and $5 million by 2012-2013.

Jessie Paul, Chief Executive Officer of Paul Writer Strategic Advisory, a company in the marketing consulting domain, says that Marketing Process Outsourcing is an arm of Knowledge Process Outsourcing. Jessie, former Chief Marketing Officer at Wipro added that Wipro too operates in the MPO sector, but serves only large players in the industry. Other players in the Marketing Process Outsourcing business are Champions Group, William Lea and some other new firms from parts of Tamil Nadu.

Mr. Vinod says that the opportunity for Marketing Process Outsourcing is very huge and is worth USD 8 billion in the United States alone. If this is the case in the US, then the opportunity in India will be about 20 to 30 times, with so many small and medium enterprises. In the case of small and medium enterprises, there won’t be marketing managers for many of them, which is again an opportunity for the MPO’s.

Even if the enterprise is small, it requires the same kind of marketing effort as in the case of big companies.

The advantages with outsourcing marketing function are reduced investment, reduced cost and flexibility in operations. The disadvantages are lack of control and inadequate technologies and processes.

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