How Agencies Outsource Their Clients' Work

Should you be outsourcing work to subcontractors? This question is very common among agencies and freelancers. A follow-up question is, “what is the best way to do it?” This is what we will discuss in this post.

Many times, it only makes sense to outsource certain projects. This is probably because you are not an expert in that field or it brings “easy money.” While it is a great idea, it can become an albatross if you don’t get it right. Without further ado, let’s show you how to outsource clients’ work without issues.

Why Do Businesses Approach Agencies For Their Work?

This is one very important question that we must answer before we discuss “outsourcing work.” Today, many businesses will rather choose to approach an agency than hire in-house staff for certain tasks. Such tasks include copywriting, graphic design, etc. Agencies seem to offer certain benefits that in-house staff and freelancers don’t. Here are some of these benefits:

1. Experience

While you may be experienced in your business, you scarcely have experience in other industries. Agencies have spent a long time doing what they do, just like you. As such, their experience puts them in a better position to handle your tasks. They owe their specialization (which you are paying for) to this experience. 

2. Unique ideas

This is a function of the experience that agencies have acquired over time. Add this to the number of professionals that they have at their disposal and you have a huge pool of ideas. Businesses need unique ideas for their tasks if they are going to stand out in the saturated industry.

3. Accountability

This is probably one of the most important reasons why businesses approach agencies. While agencies and freelancers do almost the same thing, agencies are more accountable. They understand timing and have the talent needed to meet deadlines. You can also hold agencies accountable for each product or service that you get.

4. Cost-effectiveness

There’s no denying the fact that working with agencies is far more cost-effective than all the other methods. They are budget-friendly, especially for businesses that have a ton of work per month. Most agencies require a flat subscription fee each month to carry out unlimited work. You also don’t have to pay any hidden charges or worry about workers’ allowances.

How Agencies Outsource Their Work

It is not just businesses that outsource their work to agencies. Many agencies these days are outsourcing work to other agencies or individuals. They do this mostly for the same reasons discussed above along with many others.

1. Obtain the client’s requirements

You cannot even go forward without doing this first. Before outsourcing work, you must first know what the task is all about. Discuss the task with the client to know what they expect. Make sure that you have a clear understanding of their requirements and the deliverables. 

Don’t forget that as an agency, you have become an extension of the client’s internal team. It means that you need to know their business objectives and the goals of the project. With this knowledge, you can discuss in clear terms with the agency or individual you are outsourcing to. It also ensures that you can communicate the scope of the task in clear terms.

2. Confirm the client’s budget/pricing

The fact that you will be outsourcing the task doesn’t mean that you should not make any profit. Why be the middleman if someone else will enjoy all the benefits? However, before you set your pricing or discuss it with another agency, you need to know your client’s budget.

How much are they willing and able to pay for the task? This gives you a picture of how much you can bargain with the company you are outsourcing to. Professionals will argue that you should present such projects in a way that you make at least 50 percent profit. This will cater to any contingencies on the way to completing and delivering the task.

3. Source for a service provider

In this stage, you are looking for a partner that will represent your company on the task. Many agencies get stuck at this stage for a while because they don’t know where to look. There are several platforms where you can find huge pools of talent when outsourcing work.

• Freelance sites – This is probably the easiest way to find freelance talent. All you need to do here is to sign up to a freelance platform as an employer. Put up your job ad and wait for freelancers to apply. Examples of freelance sites include Upwork, Guru, Fiverr, etc. Usually, these sites will require a token. You should factor this into your initial charge as well.
• Job ads – You can also post job ads on specific job boards. Many of these boards offer sponsored services that require you to pay a token. You should consider this so that your job post comes up before any others in your industry. Examples of platforms in this category include ProBlogger and Indeed.
• Social media – This is the easiest to use but may not be as efficient as the other two. However, it still exposes you to several talents from people within your network. It is also less costly than the other two methods discussed above.
• Employee referrals – Great employees always have a circle of other top employees. You can use this tactic if you have worked with great employees in the past. Ask them to refer someone who can help with the task. Make sure that you state your requirements clearly.

4. Select the best fit based on the client’s requirements

Sourcing for a service provider is one thing, picking the talent is another. When outsourcing work, you must remember that the person that you pick represents you. They are handling the task on your behalf so they must have the right attributes.

Check their level of experience and their portfolios as well. It is always great to compare different options in line with the requirements of the project. Asides from their track record, you must find out if they make use of a proper communication channel. It is important that the service provider you choose is reliable, efficient, and can satisfy the client’s requirements.

5. Communicate the Scope of Work to Chosen Service Provider

Great job, you now have a service provider to handle the project. Now the onus is on you to properly communicate the requirements of the client on this task. When doing this, you must be as clear as possible to avoid any errors that may tarnish your image.

Communication should be continuous as you constantly need to monitor the progress of the task. However, before kicking off the project, state the scope and the deliverables. Also, emphasize deadlines and put mechanisms in place to curb failure or disappointment.

6. Kick off the project

Congratulations!!! Everything is set and you can begin the project. Don’t forget that outsourcing work is very similar to project management. In this case, you are the project manager so the responsibility still falls on your shoulders. Continuous supervision and communication are important if you are going to get the best of this project.

Outsourcing and White Labeling

White labeling in the digital marketing context is when an agency provides marketing services that are resalable under the brand of another company. The reseller provides the services at a markup price to make a profit while the white labeler gets the work done. However, it is important to note that outsourcing and white labeling differ from one another.

White labeling involves buying a service or product with no brand name and reselling it under your name. Outsourcing on the other hand is when a business contracts the services of any agency to fulfill the demands of a business process. Therefore, the difference between the two options lies in the intended use.

For white labeling, there is the intent to resell a service or product, however, for outsourcing, the intent is to improve internal processes.

Conclusion

Outsourcing work is never easy. Nevertheless, it has several effects on the quality of your work and your profits. Don’t forget to weigh your options properly before diving in.