1. Out-tasking Comes to Market Research:
Why In-House vs Outsourced Is No Longer the Choice
Clients seeking to conduct a market research project typically choose one of two paths:
do it in-house or outsource to a full-service market research agency. Pretty simple.
But now, a third option exists: out-tasking.
Today, there are plenty of fantastic freelancers and micro-boutiques that have deep
expertise. And on the client-side, there are lots of cases where research needs are high but
budgets are low. Consider these two trends together, and the emergence of a new option
becomes obvious: market research out-tasking.
[As an aside, Jeff Kaplan of ThinkStrategies originally coined the phrase “out-tasking” to
describe the selective outsourcing of specific IT tasks to third-party service providers. At
the time, 1994, this was a pretty important distinction because IT projects until then were
typically done in-house or outsourced in entirety.]
An example of Market Research Out-tasking
Here’s a perfect example. A client-side research manager had a need for a project. He
knew enough to know that it was too big for his team to handle in-house. So he talked to
a few research agencies, and got back bids averaging about $50,000.
The thing was, the client was doing the data collection. So that was $50,000, with no
sample costs. Upon further reflecting, the client decided there had to be an option. So I
discussed various scenarios with him, helping to weigh the respective pros and cons. The
market research manager’s ultimate decision? Do the project management and reporting
in-house, but hire an experienced researcher for questionnaire design and data analysis—
two very discrete parts of the process.
The budget impact in this case was notable. The out of pocket costs dropped from $50k
to roughly $12k.
Of course, there are far more costs than that $12k. They are also going to dedicate a
significant amount of staff time (2 mid-level professionals, and access to an internal
graphics pro), survey hosting, and data collection costs. So while the OOP is low, it’s not
the only cost. Further, they won’t get the benefit of a full-service agency’s experience.
2. Not a Fluke
Out-tasking of market research is becoming more common. But it isn’t a risk-free
proposition. You should only consider out-tasking a viable option if:
• Someone on your team has experience managing market research projects. There
are lots of risks in market research; you need a project manager who can navigate
around them.
• You have access to a known, quality sample source (which is harder than it
sounds)
• You don’t mind a little risk. Freelancers are, after all, individuals. They generally
don’t have back-up. Someone gets sick, or has a sick child, and your schedule
could slip.
• Your internal clients will find an internally delivered report credible. Sometimes
research results simply have more authority when delivered by a reputable third
party.
Bottom-line
Market research out-tasking is a legitimate choice for clients seeking to augment in-house
resources with specific skills sets in order to get the job done. There are many highly-
skilled, independent researchers available, offering various skills. If a full-service agency
isn’t an option, out-tasking is great alternative.
For more information, please contact Kathryn Korostoff at
KKorostoff@ResearchRockstar.com or visit us online at www.ResearchRockstar.com.
![Out-tasking Comes to Market Research:
Why In-House vs Outsourced Is No Longer the Choice
Clients seeking to conduct a market research project typically choose one of two paths:
do it in-house or outsource to a full-service market research agency. Pretty simple.
But now, a third option exists: out-tasking.
Today, there are plenty of fantastic freelancers and micro-boutiques that have deep
expertise. And on the client-side, there are lots of cases where research needs are high but
budgets are low. Consider these two trends together, and the emergence of a new option
becomes obvious: market research out-tasking.
[As an aside, Jeff Kaplan of ThinkStrategies originally coined the phrase “out-tasking” to
describe the selective outsourcing of specific IT tasks to third-party service providers. At
the time, 1994, this was a pretty important distinction because IT projects until then were
typically done in-house or outsourced in entirety.]
An example of Market Research Out-tasking
Here’s a perfect example. A client-side research manager had a need for a project. He
knew enough to know that it was too big for his team to handle in-house. So he talked to
a few research agencies, and got back bids averaging about $50,000.
The thing was, the client was doing the data collection. So that was $50,000, with no
sample costs. Upon further reflecting, the client decided there had to be an option. So I
discussed various scenarios with him, helping to weigh the respective pros and cons. The
market research manager’s ultimate decision? Do the project management and reporting
in-house, but hire an experienced researcher for questionnaire design and data analysis—
two very discrete parts of the process.
The budget impact in this case was notable. The out of pocket costs dropped from $50k
to roughly $12k.
Of course, there are far more costs than that $12k. They are also going to dedicate a
significant amount of staff time (2 mid-level professionals, and access to an internal
graphics pro), survey hosting, and data collection costs. So while the OOP is low, it’s not
the only cost. Further, they won’t get the benefit of a full-service agency’s experience.](https://image.slidesharecdn.com/outtaskingcomestomarketresearch-100519123828-phpapp01/85/Outtasking-comes-to-market-research-1-320.jpg)
