Should UK agencies outsource?
For some time, the online advertising agencies have clung on to an in-house, holistic model of production where coders and creatives sit side by side. Yet, now the digital industry and its new wave of start-ups are beginning to take their lead from traditional advertising agencies (much as they would hate to admit it), and are opting to outsource instead.
Keeping production in-house is undoubtedly lucrative, giving agencies a far larger net income, but the margins are relatively slim.
Although some shops are only taking tentative steps, opting for a hybrid model. Some say these young agencies are only outsourcing because it is financially impossible for them to have all the relevant skills on their payroll. However, some insist that outsourcing is vital to strategic integrity, ensuring sthat clients are not force-fed solutions premeditated by an agency's financial needs or digital production capabilities.
Outsourcing does afford agencies the flexibility to cherry-pick the best talent as and when the client requires, which is proving particularly attractive to traditional advertising shops that want to get into the digital act without having to go on an online recruitment spree.