Saturday, May 26, 2007

"Outsource Everything. Insource Marketing "

These marketing guys seem to have achieved a bit of a coup with this outsourcing thing.

Let’s look at this in the publishing context, since that’s what I’m most familiar with.

Domain-specific activities:
Circulation: Outsourceable
Customer service: Outsourceable
Printing: Outsourceable
Distribution: Outsourceable

Now, the core activities:
Writing: Outsourceable
Editing: Outsourceable
Design: Outsourceable

And the regulars:
Sales: Outsourceable
Finance: Outsourceable
Accounting: Outsourceable
HR: Outsourceable
IT: Outsourceable

Reg the core activities: Many publishers will consider outsourcing of content (especially writing) blasphemous. But isn’t that what many have begun to do? And isn’t that what content aggregation is all about? For those not familiar with publishing, content aggregation is the online term for content syndication, when companies use content generated by other companies for a fee or credit.

So, if we agree that even content can be outsourced (that it isn’t extensively being done is another matter), what process does that leave in-house? Marketing (branding, business development)? Could it be that publishers need to hire people only for brand enhancement and outsource management?

Let’s look at another industry — airlines. What does an airline company need to keep in-house?

Airlines
Aircraft manufacture: Outsourceable
Aircraft maintenance: Outsourceable
Billing: Outsourceable
Passenger reconciliation: Outsourceable
Ticketing and reservations: Outsourceable
In-flight staff: Outsourceable
Ground staff: Outsourceable
Freight handling: Outsourceable
Catering: Outsourceable
In-flight entertainment: Outsourceable
Sales, finance, accounting, HR, IT: Outsourceable

Can I conclude that even in airlines, companies need only invest in marketing and outsource management?

Why am I getting the feeling that the marketing guys may have achieved a coup with this outsourcing thing?

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