Organizational culture and the Outsourcing decision
There is a lot of saying about how cost is the main and only reason companies consider before outsourcing. However, a blind spot exists that no one has talked about, organizational culture. Here is a helpful case study to understand the importance of organizational culture and the outsourcing decision.
Josh’s & Co, a mid-size law firm located in Toronto, where it has an office space to accommodate 15 people, with a running cost of 11 660 Canadian dollar monthly.
Josh’s & Co has decided to launch its digital marketing campaign for more conversions. They had to choose between hiring a full time Marketing Manager or outsource the service to a reputable BPO company onshore. However, due to some security concerns, they chose to go for full time recruitment.
After three months of recruitment, the digital marketing manager resigns due to different factors, of which:
1.Lack of understanding of the nature of marketing field:
A law firm's specialty is law. It is highly rare for an attorney to understand the digital marketing technology aspects.
2. The organizational culture:
Which in most cases adheres to strong hierarchy, does limit the marketing manager creativity space, which puts a working pressure and increase burnout.
3. Personality traits:
Whether we admit it or not, there is a strong bond between personality and profession. Groups of experts, practicing the same occupation, tend to understand each other more and think the same way. The attorneys at Josh & Co did not get along with the Marketing manager due to many differences. They preferred to chat with each other because they use and understand the same law terminology that the marketer could not comprehend.
The marketing manager's decision to resign due to organizational culture cost the company a minimum of 12000 Dollars, including salary payment and recruitment expenses. It also generated additional expenses for using office utilities and further fees to find a replacement.
Unlike hard cash, time cannot be reparable. On the off chance, Josh & Co spent a high opportunity cost that definitely exceeds 12000 CAD while failing to fulfill its promotional service need.