Market Research Outsourcing

Market Research Outsourcing

Study Overview

In a study conducted by iResearch Services, it was identified that there are about two hundred firms offering offshore market research operations from India, China & Philippines. In the past five years or so, outsourcing market research operations has become more of a norm than an exception in the research industry. This is due to various factors like reduced cost of operations, availability of the right skill set, improved operational efficiencies etc. However, with so many companies to choose from, how does an organization identify a right partner for their critical operational support?

There are numerous examples, where some very promising outsourcing relationships did not work because the organizations did not lay enough emphasis on some of the most significant factors, during their due diligence process.

This study tries to explain in detail, the key strategic & operational factors which are critical to the success of outsourcing market research operations, for CATI (Computer Aided Telephonic Interview) operations; and will take your partnerships from Good to Great, or even perfect.

Vendors or Competitors: An organization needs to analyze and ensure that the chosen vendor's service offerings are not in conflict with its own offerings. When an outsourcing partner also provides end to end research services, it may result in both the parties going after the same clients.

To avoid fuelling one's own competition and to sustain mutually beneficial long term relationships, the golden rule while outsourcing MR operations is to choose companies which are pure play outsourcing services providers.

Benefit: End Client independence

Cost vs. Value: Even though it is common knowledge that the cheapest is unlikely to be the best. Some organizations still fall into this trap and commission purely on price. Cost savings should not be the only deciding factor and organizations should simultaneously look beyond and focus on a fine balance between cost & value. An organization will be able to sustain cost savings for the long run only if the service levels remain uncompromised.

The best way to avoid falling into this trap is to first shortlist only the vendors which meet the value criteria, and then decide on the basis of costs.

Benefit - Value based decision

Partner Procurement Program: When selecting an outsourcing partner, it is prudent to employ a structured partner procurement program, which includes a detailed RFP process to evaluate multiple vendors.

The RFP, apart from the standard components, should also include:

¬ Information to disseminate organization's own needs, rather than just gathering data from vendors.

¬ Relevant questions to understand a vendor's cultural matchmaking abilities, which are critical for open communication and synergistic partnerships.

¬ Sections focused to gauge an organization's inclination to maintain long term collaborative relationships.

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