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How to Leverage Outsourcing
Digital Marketing:

A Comprehensive Guide for Agencies

Introduction

Global spending on outsourcing hit an estimated $731 billion in 2023. Moreover, according to a recent Clutch study, 83% of small businesses plan to maintain or increase their spending on outsourced business services.

The above statistics only reiterate the fact that the outsourcing landscape is transforming and it’s transforming fast. With changing market conditions, evolving technology, and fluctuating customer demands, outsourcing is being viewed as a strategic tool by brands and agencies alike to achieve not only cost-efficiency, but also innovation and growth.

Speaking specifically of digital marketing agencies, they face some unique challenges like:

How to increase profitability
How to deal with expertise crunch when it comes to niche technical demands
How to manage the inconsistent workload
How to keep up with changing technology trends

These challenges make it harder for agencies to effectively support and retain their clients, meet their needs, and maintain competitiveness, growth, and profitability during uncertain times. And outsourcing is one option that agencies across the world are eyeing to deal with all the above challenges.

If you represent, own, or manage a digital marketing agency and are looking to learn how outsourcing can be a valuable and profitable approach for your firm, then this resource is perfect for you. In this ebook, we attempt to deep dive into every important aspect of digital marketing outsourcing that is relevant to modern-day digital marketing agencies so you can make the most out of outsourcing.

Here’s the tea you get in this ebook:

How agencies benefit from outsourcing
What services are agencies like you outsourcing
What services should agencies not outsource
When should an agency outsource to a local agency vs an offshore agency
Cost comparison - In-house vs Local agency vs Offshore agency
How to choose the region for outsourcing
Common outsourcing challenges and how to deal with them
How to pick the perfect-fit outsourcing partner for your agency (Best practices, Red flags, Questions to ask)
How outsource ready are you? Take a quiz to find out

How agencies benefitfrom outsourcing

As a digital marketing agency, you’re always on your toes to bring the best services and create the most compelling campaigns for your clients.

But what if….

One of your clients is unhappy that you don’t provide a certain service and is contemplating going to your competitor
Another client’s incoming workload is inconsistent, making it difficult to generate predictable revenues
You’re struggling to find and retain skilled professionals to offer that service
You don’t want to increase your already sky-high costs by purchasing new marketing tools or hiring new resources with specialized/niche skills

Outsourcing benefits digital marketing agencies in many ways. Now, you might just be wondering whether or not businesses are outsourcing for reasons other than cost benefits. Well, here’s something interesting:

In a survey done by Deloitte in 2020, 70% indicated cost was a primary reason for outsourcing. However, in another survey they conducted just 2 years later, in 2022, they found that while cutting costs did find a place in the top five drivers for outsourcing managed services, keeping up with technology and access to new capabilities were the top two primary reasons for outsourcing!

Reasons for outsourcingmanaged services

Outsourcing allows digital agencies to provide a wider range of services and thus satisfy more of their clients’ needs. Two, with “white label digital marketing”, they can rebrand these purchased services with their own logo and company name and resell them to clients at a premium, thus boosting their revenues and profits.

Next, outsourcing enables agencies to provide more services compared to their competitors. A more expansive service portfolio that effectively fills the gaps left by competitors gives agencies an edge over those competitors and also helps them attract more and more high-paying clients.

Finally, outsourcing allows them to accept clients’ additional and infrequent service requests without increasing their operational burden, without having to invest in new technologies, and without having to add more (expensive) in-house resources. Furthermore, they get the freedom to focus on their critical business areas and build on their core strengths, both of which can help them serve clients better in order to improve client satisfaction and build stronger and more meaningful client relationships.

Why digital marketing agencies outsource

To make up for a skills shortage in-house
To get support on adjacent services their clients require but they cannot provide themselves
To add offerings/services that are beyond their core areas of expertise
To avoid incurring additional expenses of adding low-demand/one-off services to their offerings portfolio
To respond quickly and positively when they receive one-off requests from clients for certain services
To efficiently manage demand fluctuations (e.g., due to seasonality) while maintaining workflow consistency and creating new revenue streams
To ensure that the right capabilities are available to accommodate a sudden demand spike, large incoming project, or client with unusual requirements
Retain all strategic/client-facing roles and responsibilities in-house while outsourcing technical or operational tasks to a reliable partner

What services are agencies likeyou outsourcing

So we’re taking out a leaf from our database of 985+ agency clients to show the percentage-wise bifurcation of agencies (based on team size) that have outsourced to Mavlers.

Next, you are probably deliberating which services are safe to outsource and maybe what other agencies like you are outsourcing.

You can outsource most of the digital marketing services you offer.

Commonly outsourced services by agencies
Web development	CRM and automation
Paid advertising	Email marketing
Search engine optimization	Link building
Social media marketing	Landing pages
Marketing analytics	Integrations and ESP/ CRM migration

Outsourcing these services to an agency can help to effectively deal with many challenges that commonly plague many marketing agencies:

Difficulties onboarding and serving clients with complex requirements like CRM management- outsourcing will provide you with the niche technical expertise you require
Expertise gap and talent crunch making it tough to meet clients’ demands- outsourcing or hiring a managed resource from an agency can help to keep old and get new clients
High hiring and training costs of in-house resources affecting overall profitability- it is estimated that the total cost to hire a new in-house employee can be three to four times the position’s salary, as this includes paychecks, perks, and benefits. So, while you’ll spend at least $60K + perks to onboard a new employee, with outsourcing, the cost is drastically reduced to a range of $36-60K while you also have access to the best in the field.
Difficulties managing inconsistent workloads with existing resources- the key is to outsource to an agency that scales with flexibility
Inflation in local markets has led to higher salaries for in-house resources. Moreover, with less business in the market, there’s high competition when it comes to pricing. Outsourcing gives you access to a larger talent pool while also being a cost-effective option
You are already struggling to penetrate the market and generate consistent revenue- outsourcing execution tasks can help here so that you can focus on finding new business
Availability of high-quality agency partner that consistently delivers quality over quantity, providing a sustainable option

What services should agenciesnot outsource

Now that we’ve seen the digital marketing services that can be outsourced, let’s take a look at the services that should never be outsourced as an agency.

Any activity that’s directly linked to your agency’s core competencies and is therefore largely responsible for your revenues, profitability, and even reputation.
Services where one-to-one meetings with clients are required. Typically, these are the services where the agency needs a detailed understanding of the client:

Business and revenue model
Product/service offerings
Market
Customers and customer personas
Customer sentiments
Business strategy and goals

All of this information can be sensitive or business-critical information, and its loss could adversely affect the client. That’s why the services that depend on garnering this information should never be outsourced.

When should an agency outsourceto a local agency vs an offshore agency

After you decide to outsource the digital marketing activities of your clients to an agency, you must decide whether to go with a local agency (also known as onshoring) or an offshore agency. You can also work with freelancers. All these choices come with pros and cons, and it’s important to be cognizant of these aspects before finalizing your outsourcing decision.

Let’s take a detailed look at the three options so you can make an informed decision:

Outsourcing option	When to select	Why to select	Challenges
Local freelancers	When you need to access a specific skill or want to outsource a specific service When you require a low-cost outsourcing option that fills your skills gaps and helps you maintain high profitability	They are experts in their chosen niche They understand the local context They can work with your team closely They tend to be very agile and flexible in terms of availability, scheduling, scope, etc. Ideal if you require someone for a specific project, service, or digital channel	May not be suitable for broadly-scoped projects May not bring multiple skills or capabilities (if you need them) Unavailability can have a tangible negative impact on project schedule, output quality, or client relationships
Local agencies	When you need to access multiple skills or outsource multiple services When you want to outsource strategic parts of your business When you want to create co-branded client pitches to win more projects, generate better results for clients, and boost your client base	They bring a broad skillset They understand the local context They can effectively augment your team’s capabilities Multiple resources available, minimizing the potential for disruptions due to unavailability of one resource	May not be suitable for broadly-scoped projects May not bring multiple skills or capabilities (if you need them) Unavailability can have a tangible negative impact on project schedule, output quality, or client relationships
Offshoring agencies	When you need to access multiple skills not available in your local geography When you want to outsource technical parts of your business while retaining the strategic parts in-house When you want the benefits of both freelancers (low cost) and local outsourcing (higher reliability, strategic partnerships) along with higher margins and profitability	They bring a broad skillset They can effectively augment your team’s capabilities They can do a combined client pitch with you Multiple resources available, minimizing the potential for disruptions due to unavailability of one resource More cost-effective than local outsourcing	More expensive than single freelancers

If you prefer to outsource to an agency partner, make sure you’re aware of the pros and cons of outsourcing to local partners versus offshore partners.

Local outsourcing

Pros

No issues related to time differences, especially around collaboration or coordination
No cultural or linguistic barriers plus the partner brings deep understanding of the cultural/linguistic/religious nuances in their/your country
No confusion regarding different laws and regulations for privacy, data protection, taxation, etc.
Higher quality control due a higher level of possible oversight plus a shorter feedback loop

Cons

Potentially higher costs and lower cost savings, especially if both parties operate in a high-cost country like the US, UK, Australia, etc.
Access to a smaller talent pool, especially in countries with fewer marketing agencies
Limited global knowledge and exposure, creating potential difficulties during planning and executing services for audiences from other countries

Offshoring

Pros

Higher cost savings and higher potential to increase revenues, especially if the agency is in a high-cost country and their partner agency is in a lower-cost country (e.g. India)
No cultural or linguistic barriers plus the partner brings deep understanding of the cultural/linguistic/religious nuances in their/your country
Access to clients in new markets and new revenue opportunities from those markets
Availability of offshore teams in different time zones allows agencies to offer 24/7 (or as near as) services to clients

Cons

Time zone differences can negatively impact collaboration between geographically dispersed teams (agency and agency partner)
Difficulties monitoring and overseeing offshore teams may affect collaboration and output quality
Potential communication barriers due to different English accents or use of native English phrases or terminology
Possible issues related to data security, which can become a serious problem with sensitive client data

Cost comparison - In-house vsLocal agency vs Offshore agency

Now that you have an idea of the pros and cons, let’s explore the cost comparison so you can make an informed decision. Here’s a country-wise cost comparison with respect to the average cost per hour.

2024 digital
marketing
prices by location

Hourly rates for digital marketing companies by
popular locations.

Country	Average Cost per Hour
United States of America	$100-$149
India	<$25
United Kingdom	$50-$99
Canada	$100-$149
Australia	$100-$149
Philippines	$25-$49
Ukraine	$25-$49
Poland	$50-$99
Spain	$50-$99
Mexico	$25-$49

How to choose the region for outsourcing

Now you understand that you have two main options to outsource your clients’ digital marketing projects: local outsourcing (onshoring) and offshore outsourcing.

Next, let’s take a look at the regions you can outsource and the pros and cons of outsourcing by different geographies.

Deloitte’s 2023 Global Shared Services and Outsourcing survey reveals that India emerged as the most preferred location as a Global Shared Services hub, followed by Poland (in Eastern Europe) and Mexico (in Latin America).

However, when trying to make a decision, it can help to check the pros and cons of outsourcing to these geographies. The overview below will certainly give some direction.

Outsourcing to Latin America		Outsourcing to Eastern Europe		Outsourcing to India
Top locations: Mexico, Brazil, Argentina, Chile		Top locations: Poland, Romania, Ukraine, Hungary		Top locations: Mumbai, Bengaluru, Delhi NCR, Pune, Ahmedabad
Ideal for: Outsourcing-ready North American marketing agencies		Ideal for: Outsourcing-ready European marketing agencies		Ideal for: Outsourcing-ready Asian, North American, European, African, and Oceanic marketing agencies
Pros	Cons	Pros	Cons	Pros	Cons
Advantageous time zones for North American agencies	Possible cultural and linguistic barriers affecting collaboration and/or output quality	Advantageous time zones for European agencies	Possible cultural barriers affecting collaboration and/or output quality	Advantageous time zones for Asian, North American, European, African, and Oceanic marketing agencies	Possible cultural and linguistic barriers affecting collaboration and/or output quality
Lower labor costs compared to agencies in high-cost countries	Possible technical infrastructure issues (e.g. Internet access)	Lower labor costs compared to agencies in high-cost countries	Low to moderate economic growth somewhat reduces the region’s attractiveness to foreign businesses	Lower labor costs compared to agencies in high-cost countries	Possible technical infrastructure issues (e.g. Internet access)
Pros	Cons	Pros	Cons	Pros	Cons
Access to skilled, English-speaking marketing professionals	Political or economic instability affecting staff availability and agency SLAs	Access to skilled, English-speaking marketing professionals		Access to highly skilled, English-speaking marketing professionals	Political or economic instability affecting staff availability and agency SLAs
Access to clients in new markets and new revenue opportunities from those markets	Low economic growth reduces the region’s attractiveness to foreign businesses	Access to clients in new markets and new revenue opportunities from those markets		Access to clients in new markets and new revenue opportunities from those markets
Strong laws and regulations around privacy and data protection		Strong laws and regulations around privacy and data protection		Strong laws and regulations around privacy and data protection
Pros	Cons	Pros	Cons	Pros	Cons
Government support		Government support		Government support and incentives for foreign firms
Incentives for foreign firms		Incentives for foreign firms

To give you a better view of the regions from where Mavlers gets outsourcing projects, here’s a peek into our database that gives a clear picture of the region-wise bifurcation of our agency clients:

Every coin has two sides. There are also certain challenges that come with outsourcing. Let’s delve into these and also see how we can overcome them.

Common outsourcing challengesand how to deal with them

Lack of outsourcing experience

When you haven’t outsourced earlier, working with an outsourcing agency can be overwhelming. You are not familiar with their workflow, practices, and concepts.

Be sure that you are outsource ready. Ask yourself questions like – why are you outsourcing, are you outsourcing the right services, do you have the expected KPIs in place, etc. This quiz will help you get a clear idea in this regard.

Cultural differences

Some of your clients’ requirements may demand a good understanding of the culture in their region. An agency located miles apart might not be able to deliver the expected results especially when it comes to copywriting.

Outsource to an agency located in the region of your client. Another solution here is to look for an agency that may be located elsewhere but has delivered culture-focused content to other clients.

Communication barriers

Language and communication barriers can result in not-so-good experiences. An agency located in another continent may not be fluent in English. And what if they are not prompt communicators? This can lead to delays and low-quality deliverables.

Choose an agency partner where English is commonly used. For prompt communication, make sure they use instant messaging and video calling and have a reporting structure in place.

Precise knowledge transfer

Transferring knowledge can be a huge barrier in outsourcing success, and it is a challenge that can arise from your side as well as the agency side.

Make sure the agency is providing a dedicated Account Manager who is the single point of contact for your needs. Moreover, make sure you have a dedicated POC at your end to deal with the agency requirements.

Finding the right engagement model

Your requirement is unique and you need a right-fit outsourcing model to meet them.

Check with the agency what outsourcing models they offer. Generally, a good agency will have well-structured models for every requirement. Let us give you an idea by sharing the models we offer at Mavlers.

Model type	Project-based	Retainer engagement	Dedicated model
Suitable for agencies?	Yes	Yes	Yes
Ideal if	You have a one-off or low-value project that can be executed quickly and cost-effectively by outsourcing	You require recurring or continuous support to help drive your client’s marketing strategy and deliver more consistent results for campaigns	You want to augment your in-house team by adding niche expertise without the hiring and training hassle and also get full scaling flexibility

How to pick the perfect-fit outsourcingpartner for your agency

Let’s start with the…

A. Best practices to follow when choosing an outsourcing partner

The best practices listed below will further assist you in finding the right outsourcing partner that’s most likely to support your – and your client’s – marketing and business goals.

Do your due diligence

When comparing different agencies, check each agency’s capabilities, history, and track record.
Do a Google search for important marketing keywords and see where they figure in the results.
Talk to their clients to get information about their output quality, timeliness, and ability to meet SLAs.
Make sure to ask the right questions and dig beneath the surface of generic responses to find out what these clients really think about your potential partner.
Research their staff’s skills around marketing, communication, adaptability, and time management.
Analyze client testimonials, third-party reviews, and ratings on sites like Glassdoor and Trustpilot to better understand their culture, reputation, and business priorities.
Also ask for customer references, case studies, capability decks, and proof of certifications to confirm that their expertise and skillset match your requirements.

Explore their focus areas

When reviewing digital marketing agencies for outsourcing, assess their focus areas and if those areas sync with your goals and objectives. Talk to their subject matter experts or solutions teams to understand what they can offer and where they claim to have expertise.
Also, ask yourself if you need a generalist or a specialist. A specialist agency will have specific and more advanced skills that will help you execute high-quality projects in that area for your clients. However, such agencies are generally more expensive than generalist agencies. If you need support in multiple areas, you will need to hire multiple specialist agencies, which will further increase your costs and decrease your profits. You can avoid these costs by hiring a generalist agency.

Check their working time zones

It can be advantageous to work with an offshore agency because it will enable you to provide more services to clients over a longer time window. However, different time zones can create communication and collaboration issues. Ideally, you should select an offshore agency partner or white-label service provider that works in the same time zone as your in-house team. The next-best option is for the teams to work a few overlapping hours to ensure seamless handover, smooth daily updates, and better control over project/campaign progress.

See how they present themselves in the online space

A digital marketing agency with a weak online presence may not be the best outsourcing choice. Review their website and social media presence.
Do they present their brand compellingly and professionally?
What kind of content do they produce?
The strength and visibility of their online presence will help you understand their capabilities and assess if those capabilities match your requirements (and reasons for outsourcing in the first place!).

Assess your initial engagement experience with them

Review what kind of questions they asked when discussing the potential for an outsourcing engagement with your agency.
How was your experience interacting with them?
Did their sales team make an effort to understand your challenges and requirements and offer to design a custom-tailored solution?
Or did they rush to close the deal with you, perhaps by offering generic, off-the-shelf solutions?
The answers to all these questions will help you better assess their capabilities and determine if they can meet your needs.

Do you require a marketing partner or white-label marketing services?

If you require an agency you can introduce to your client as your partner, go for an onshore agency. Ideally, this agency would already be familiar with your market, service portfolio, and perhaps even your client. But if you only need someone to help expand your service portfolio and won’t be involving them in client communications, white labeling to an onshore or offshore agency may be a better choice.

Do a trial run

Do a trial run with each of the agencies in your final outsourcing list. A trial, executed in “real” business conditions, will help you better assess their abilities and predict their compatibility with your agency. Ask them to execute a small project or campaign and then assess their output against the key performance indicators (KPIs) that matter most to your agency (and clients). If their results surpass your KPI baseline, they may be a good outsourcing partner.

Check if they are willing to accommodate your compliance and data protection requirements

An offshore agency in a different country may have implemented compliance and legal measures (e.g., for client confidentiality, consumer privacy, data protection, etc.) that are different from yours. However, if they are willing to accommodate your requirements and practices, there’s no reason why you cannot outsource marketing work to them. Remember that it’s important to work with an agency that can accommodate you in these areas. Otherwise, you may find yourself facing numerous compliance and legal challenges, including regulatory fines, legal action, and higher customer churn.

Keep an eye out for these attributes in an agency

Strong communication skills
Strong online presence
Marketing expertise
Understanding of client requirements and challenges (from a marketing perspective)
Excellent problem-solving skills
Outstanding execution skills
Adaptable and flexible
Operational and billing transparency
Results-focused
Creative
Able to maintain client confidentiality and protect client data

B. 5 Red flags to look out for in an outsourcing agency

The signals below should make you pause before signing on the dotted line.

Lack of a communication rhythm and POC
Effective communication is the cornerstone for any business engagement. Without communication channels in place, a rhythm for the communication, and a dedicated agency POC or account manager, you may find it tough to meet timelines and get good quality work. Professional agencies ensure they have these basics in place for smooth operations.
No good enough reviews
Testimonials act as an invaluable guide when picking an agency partner. Seek a consistent pattern in reviews and look for reviews beyond their website. See what their clients are saying about them on third-party platforms like Clutch, GoodFirms, Trustpilot. A robust history of positive feedback is a good sign, while a lack of reviews can be a red flag.
Lack of transparency
Is the agency not clear about what they can deliver and what they can’t? Well, that’s a red flag. Moreover, unclear pricing is another factor that should be a concern. It can lead to unexpected, added costs. A good agency clearly conveys their pricing structure, including any potential charges that could add up to the project cost.
No clear KPIs and project management strategy
Clear metrics for success and a systematic way of managing and reporting the progress of projects are factors that define a competent agency. Ensure the agency outlines the KPIs with you at the very start. Also, with no project management tools in place, the agency will struggle to align with your expectations. It is thus imperative to understand the prospective agency’s approach to managing projects and meeting goals along with deadlines.
Unwilling to share how they stay updated with latest trends and technologies
The ever-evolving digital landscape demands you to stay on top of the latest trends, tools, and technology. The agency you plan to partner with must prioritize staying ahead of industry trends; such an agency can provide innovative solutions, deliver better results, and do it faster. And most importantly, they must clearly convey to you what steps they take to stay updated.

C. 10 questions to ask when screening your outsourcing partner

How is your agency placed when it comes to scalability? Is your team capable enough to accommodate new/ urgent requirements?
Do you have a work portfolio to showcase your work for different industry clients?
What is the technology capability you possess when it comes to the diverse range of digital marketing services?
Can we speak to your former agency clients or brands you have worked with?
Do you have a Non-Disclosure Agreement/ Contract in place?
Can you give a customized quote for our agency’s specific requirement?
What is your working process and reporting structure?
What project management tools do you use? Can you accommodate our tools instead?
What are the data security measures you follow?
How can we be sure you will not directly connect with our client?

Answers to these questions will certainly set the right tone for the future engagement. So make sure you ask these questions and are satisfied with the answers you get.

How outsource ready are you? Take this quiz to find out

Well, we’ve covered almost everything you need to know about outsourcing your agency’s workload to another agency. So to end this on a really helpful note, we’ve put together a perfect quiz for you to help you decide whether you are outsource ready or need to do some homework before you go ahead.

Take the quiz

Wrap-up

In this comprehensive guide to digital marketing outsourcing, we discovered that outsourcing some of the digital marketing tasks of your clients can benefit your marketing agency in many ways. The key is to select an experienced, reliable, full-service agency that’s fully invested in your and your client’s success.

Mavlers offers a wide range of white-label digital marketing services that can help you expand your agency’s portfolio, build your client list, and create new revenue streams. With expertise in comprehensive digital marketing services and experience across industries, our predictive analysis is something you can absolutely rely upon.

Want to know anything about outsourcing?

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How to Leverage Outsourcing Digital Marketing: