Scaling development capabilities to meet client demands has always been a challenge for marketing executives. With technology and consumer expectations evolving faster than ever, leaders face intense pressure to deliver innovative solutions swiftly and efficiently.
But it doesn’t have to be this way.
In this article, we’ll dive into five key challenges in software development and show how partnering with a specialized tech company can help you tackle these obstacles effectively.
1. Accessing the Right Tech Stack Talent to Align with Client Demands
As agency clients demand increasingly sophisticated digital components in their campaigns, ad and marketing executives face a critical challenge. The complexity of modern projects requires expertise across a wide array of technologies, including AI, machine learning, big data, AR/VR, and customer data platforms.
However, agencies don't always have the in-house tech stack talent to support the diverse needs of their clients. The task of finding and retaining experts in these specialized fields is not only challenging but also exceptionally expensive. The competitive market for skilled developers, characterized by high salary demands and low retention rates, exacerbates these difficulties.
Accessing a pre-vetted talent pool from a technology outsourcing firm can alleviate this challenge effectively. By partnering with a nearshore provider, particularly in Latin America, agencies can tap into a rapidly growing pool of tech talent with the necessary expertise at competitive rates. This strategic move ensures agencies have the right talent to support various client tech stacks.
This enables them to meet complex project requirements without the burden of continuous recruitment and training. Additionally, the time zone alignment with Latin America facilitates better communication and seamless collaboration, making integrating and delivering high-quality digital solutions for clients easier.
2. Quickly Scaling Teams with Recruitment Headaches
Ad and marketing executives perennially need help with rapidly scaling development teams to meet project demands. Project scopes and timelines require flexible staffing solutions that adapt to varying workloads.
However, recruiting and onboarding new team members can be time-consuming and costly, often resulting in delays and inefficiencies. In 2024, the average time to hire a new employee is approximately 44 days, which can extend even longer depending on the complexity of the role and the specific industry requirements.
This prolonged process puts agencies at significant risk of losing new opportunities if they cannot scale quickly to support new accounts or large projects.
Engaging a technology partner for staff augmentation provides the agility to scale teams quickly and efficiently. With access to a diverse pool of skilled developers, outsourcing firms can quickly provide the precise expertise required for specific projects.
3. Managing the Ebbs and Flows of Client Demand and Rising Costs
Another significant challenge that ad and marketing executives face is managing the fluctuating demand for technology talent.
Client projects can vary significantly in scope and duration. At the same time, a sophisticated digital campaign might take months to complete; having a full-time developer on the payroll is an annual expense. This mismatch can severely affect an account's overall profitability, as maintaining a full-time in-house team for short-term projects becomes financially unsustainable.
The rising costs of hiring skilled in-house developers add another layer of complexity. With top developers commanding substantial salaries and benefits, maintaining a robust in-house team can be exceptionally expensive for many ad and marketing companies. The increased competition for talented developers has driven salary demands even higher, further straining financial resources and impacting profit margins.
Outsourcing software development to a nearshore partner can effectively solve these challenges. By engaging a technology partner, agencies pay only for the time the partner's talent is assigned to a client project, ensuring cost efficiency and alignment with project timelines.
Firms in regions like Latin America offer competitive salaries and comprehensive benefits, enabling agencies to maintain high-quality standards while significantly reducing billable rates. This strategic reduction in operational costs enhances profit margins. It frees up resources that can be reinvested into other critical business areas, such as innovation and client relationship management.
4. Maintaining Core Competencies Amid Integration Complexity
In the fast-evolving digital landscape, agencies often find themselves diverted from their core competencies—strategy, design, and creativity—by the need to integrate new technologies into their campaigns.
Ensuring compatibility, maintaining system performance, and avoiding disruptions can be formidable, especially when the in-house team lacks technical expertise or resources. This complexity can lead to project delays and increased costs, making it difficult for agencies to deliver their best work.
Leveraging a technology outsourcing partner can help agencies stay true to their foundational strengths. By collaborating with a specialized tech partner, agencies can delegate the intricate and often cumbersome technology implementation process to experts with the necessary skills and experience.
This approach allows agencies to focus on what they do best—developing compelling strategies, designing innovative campaigns, and fostering creative solutions—without being derailed by technical hurdles.
A dedicated technology partner brings specialized knowledge in various tech stacks and has extensive experience handling complex projects. This ensures that new technologies are seamlessly integrated into existing systems without compromising performance or causing operational disruptions. Such partnerships minimize the risk of project delays and accelerate time-to-market for new digital solutions, enabling agencies to deliver cutting-edge campaigns that meet client expectations efficiently.
5. Data-Driven Marketing and Optimizing Campaign Performance
In today's marketing landscape, data is the driving force behind successful campaigns. The ability to organize, analyze, and derive actionable insights from client data is essential for optimizing campaign performance while minimizing investment. This data-driven approach allows agencies to fine-tune their strategies, personalize their messaging, and ultimately deliver better client results.
However, managing and analyzing such vast amounts of data can be daunting, especially when coupled with stringent data privacy regulations like GDPR and CCPA and industry standards such as ISO27001, SOC2 Type 2, and HIPAA. These regulations complicate data management, increasing non-compliance risk and potentially hefty fines.
Partnering with a technology firm specializing in data security and privacy compliance can provide agencies with the critical capabilities they need. These technology partners are well-versed in regulatory requirements and equipped with robust security protocols to ensure all client data is managed and protected to the highest standards.
Technology partners offer advanced data analytics tools and platforms that can be seamlessly integrated into the agency's workflow. These tools enable agencies to track real-time campaign metrics, allowing for immediate adjustments and optimizations. Furthermore, technology partners can develop customized analytics solutions for internal and client-side use cases, ensuring that data-driven insights are accessible and actionable across the board.
In conclusion, the complexities of digital transformation in the advertising and marketing industries necessitate strategic partnerships to thrive. By addressing critical challenges such as accessing the right tech stack talent, reducing costs, managing data securely, and scaling teams effectively, a nearshore technology partner can be a game-changer for organizations seeking to enhance their digital capabilities.
For a deeper dive into these topics and more insightful strategies on mastering technology outsourcing, download our comprehensive eBook, "The Ad Exec's Guide For Mastering Technology Outsourcing." This essential resource provides valuable insights into leveraging Latin American talent to drive innovation and growth in your business.