Why Organizations Outsource Market Research

In today's fast-paced business environment, making effective decisions hinges on an accurate and objective understanding of market trends, opportunities, threats, and the overall competitive landscape.

Market research was traditional time-consuming and labour-intensive, however with the advent of technology many of these challenges have been mitigated and many organizations in MR industry begin to concentrate their efforts in specializing their skills and tools needed to develop a comprehensive knowledge base.

The global revenue of the market research industry exceeded 84 billion U.S. dollars in 2023 and has grown more than twofold since 2008.

Conducting ongoing market research can be especially challenging when faced with budget constraints and staff turnover. This is why many successful organizations and brands choose to outsource their market research to specialized agencies, as it offers competitive edge and numerous significant benefits and advantages such as:

1. Access Specialized Knowledge and Skill: Market research firms offer expertise that companies may not have internally, and would need inputs from the dynamic and everchanging consumer needs. A specialized MR agency can also identify trends that span multiple industries, offering a richer and broader perspective on any given topic, both from a Business to Business and Business to Consumer perspective.
2. Obtain Qualitative Research: Competitive intelligence is just one of the many components a market research firm can provide. Custom market research firms with a global presence like Divergent Insights Pte Ltd, excels at interviewing market participants at every node of the value chain, including customers and trade partners. These in-depth interviews answer important “why” questions that delve deeper than surface-level numerical data, helping businesses pinpoint specific areas for improvement.
3. Make Data-Driven Decisions: "In the current swiftly changing consumer landscape, all major strategic business decisions need to be supported by independent data. Hence, the demand for outsourcing market research remains strong," explains Narendra Mansukhani , our Chief Growth Officer. “Companies can be slowed down by being committed to their own view. An outside market research partner can help a company see new opportunities and trends”
4. Save Time and Money: Although market research is not cheap, it can mitigate the hidden costs associated with poor business decisions and free up staff to focus on other urgent tasks which is core to business. By purchasing insights through qualitative and quantitative studies, companies can save hundreds of hours of research and access information that would be difficult to obtain otherwise.
5. Maintain Flexibility: Outsourcing market research provides companies with greater flexibility. They can acquire market research on an as-needed basis instead of hiring, training, and retaining an in-house staff. When headcount and overhead costs are a concern, maintaining this flexibility can give organizations a valuable edge.

Potential Disadvantages: Outsourcing market research may have potential disadvantages if not managed carefully. The quality of the research depends on the market research firm’s suitability for your needs. Incomplete or inaccurate data can lead a company down the wrong path, so it’s important to vet a market research firm thoroughly. Understanding the scope of the research and maintaining good communication is key to avoiding misunderstandings.

Conclusion: Divergent Insights Pte with its office and teams across APAC region partners with organizations globally to address a variety of business challenges that may require more targeted information, such as measuring user experience, audit evaluation, new product development, geographic market expansion, competitive intelligence, and product and pricing tests. By leveraging our global research expertise, businesses can make well-informed decisions, gain a competitive edge, and navigate the complexities of today's dynamic market landscape.

To know more about Divergent Insights, visit www.divergentinsight.com.

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