In simple words, what a CPO House does is, it adds to agencies’ capabilities, without a large investment, helping you grow from small to big and from big to bigger.
This is how it works?
Creative Process Outsourcing partnerships can be taken as a strategic move by the agencies in order to gain a competitive edge in the market. It thus, opens up opportunities for organizations/agencies to utilize skill sets and expertise that they normally would not be able to access without a large investment. It can also become a savior to startups and small agencies, which have a modest capital to work with.
In times when creative teams are overburdened with routine jobs that take up much of their time and there is a constant rise in the cost of resources, the marginal profits of the agencies are going down. This is where a CPO can help you out, by helping your provide better services to your clientele, at a lower cost.
1. Enhanced service portfolio:
There are many agencies that provide only specific creative services to their clients, but there are clients’ who want all their creative work to be done from a single point of contact. In such a situation, agencies either have to say NO to the client or have to contact different agencies for each service. This is where a CPO steps in. It can provide a single touch-point for various services required, working for the client on behalf of and under the name of the agency.
2. Better focus on core competency:
As the agency grows or the number of clients grows, routine jobs for the creative teams also multiply. These jobs take up much of the time and energy of the creative teams. Outsourcing these jobs frees the creatives from non-core functions and puts their focus back on their core competencies. This also gives the agencies more time and opportunity to expand their business, while reducing the cost of human resources and infrastructure.
3. Complete flexibility of resources:
A CPO house provides you complete flexibility in choosing the resources as per your requirement. These are trained in your regional and cultural sensitivities and do not take much time in understanding your brand and agency procedures.
Besides, each resource comes with a probation period, where you can observe the resource’s performance and in case you are not satisfied, you get an option of replacement at no extra recruitment cost. Additionally, you have the flexibility to lay off a resource by giving a notice of just 15 days, without paying for any liability or dues.
4. Reduced operating & resource costs:
Lower cost is perhaps the biggest advantage of creative outsourcing. Work is done at a fraction of the cost as compared to the cost incurred when it is done locally without compromising on quality. Besides the resource cost, you also save on your operational costs with limited resources stationed at your entity.
5. Entry into the untapped SME market:
Today,the SME market is not just massive and growing but also mostly untapped. This is mainly because the agencies find it difficult to bear the high costs of the resources in the region for exploring this low-cost segment. With a CPO partnership, an agency can easily enter the growing SME market, without having to bear the cost differentials.
Listed above are just some of the advantages that one can enjoy by outsourcing work to a CPO. Be it a small sized agency looking for growth, a mid-sized agency looking to diversify or even a large-sized agency planning to expand in various sectors and regions, a CPO can always come handy for providing better, more diversified and cost-effective services to the relevant market.