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How outsourcing delivers significant efficiency gains

Driving efficiency is seen as a major business imperative in every sector of the economy, media and advertising included. As business leaders focus on efficiency, the business process outsourcing (BPO) market has exploded. According to a report by Technavio, outsourcing is expected to grow by USD 76.90 billion, in the next four years. That’s a CAGR growth rate of over 7%. Is there a connection? Absolutely!

Outsourcing drives productivity, both directly and indirectly, by enabling employees to focus on strategic, high-value work, while leaving technical, manual and process-driven work to a team of experts.

At Paragon, we’ve seen this phenomenon playout time and time again. When we partner with a media agency or a brand that has in-housed its media buying, they always remark that Paragon’s ad operations teams are able to deliver more campaigns than their teams were able to achieve. And in general, and we shave 60% off of their ad operations costs.

This is no criticism of their Account Managers, mind you. Unlike them, our teams focus 100% of their time on the minutiae of campaign delivery. That’s our job, it’s all we do. And if you do the same thing all day every day, you’re bound to be at the top of the game.

But that tells only part of the reason. The efficiency gains we deliver stem from our commitment to standardization, and the detailed processes we follow, which are laid out ahead of time in the detailed onboarding process documents we create for customers, as well as our effective error prevention process.

On top of our process-driven approach, we only hire highly experienced people who are certified in the systems used to deliver services. All new hires go through our digital training academy. And we have one of the most effective performance management operations in the industry.

The rigor we apply to our processes are pretty unique in the industry. We recently acquired a client that once used Infosys, a very reputable BPO company located in India. Actually, it’s one of the biggest BPOs in the world. We were able to deliver the same services to the client with 52 people, whereas Infosys required 64. That’s a 20% efficiency gain over somebody doing the same work as us.

The gains we achieve when taking over the ad operations of an agency are even higher.

The other side of efficiency

But the efficiencies we deliver tell just half of the story. A significant portion of the gains you’ll reap as an agency lie with your Account Management and Sales teams. They’ll spend less time chasing down creatives, generating reports, and doing billing reconciliation.

By removing the tasks of trafficking, your team can focus on forward-looking work: finding new business, growing existing accounts, focusing more on creative strategies and discovering new audiences for your clients’ products and services.

Additionally, efficiency gains come from the institutional knowledge your company will keep within its walls. Account Managers are often frustrated with the task of campaign trafficking. It’s stressful, and can be complex, highly manual work, and not what they had in mind when they majored in communications at college. Attrition and recruitment are tough challenges for media agencies.

Here’s where Paragon outsourcing can help. One of our outsourcing clients told me that recruiting has become a lot easier now that she can tell candidates that they won’t be responsible for trafficking campaigns! There are a lot of efficiencies to be gained when an agency can spend less time recruiting and training new employees, and more resources on delivering outstanding services to clients.

Want to discuss how Paragon Digital Services can drive efficiencies in your ad operations? Get in touch.

 

 

 

Author:David Tyler

Date:3rd June 2021