- April 03, 2023
In recent years, with the intensification of market competition and changes in global industry trends, more and more gaming companies tend to use outsourced services to run their business. According to research by TC-GAMING's 2023 market team, this trend will continue to grow. Furthermore, outsourcing companies are constantly improving their professional knowledge and technical level to meet the industry's needs better.
Therefore, the outsourcing industry will continue to be one of the important ways for gaming companies to achieve cost-effectiveness and improve efficiency. The editor of this article will discuss with the bosses the various trends and advantages and disadvantages of the development of the gaming outsourcing industry, hoping to provide you with different views on the management of gaming company bosses.
- Economic globalization - Since the 1980s, global economic integration has accelerated, which has promoted the development of the globalization trend of corporate outsourcing, and the gaming industry has also been affected by it. Under such an image, the outsourcing of the gaming industry has also accelerated, and more gaming companies have referred this direction to outsourcing to reduce costs and improve efficiency.
- Technological advancement - With the development and popularization of communication technology, enterprises can more easily manage and monitor global business. At the same time, with the progress and development of the Internet, enterprises are no longer restricted by geographical location and can cooperate with outsourcing companies only through network communication.
- Impact of the epidemic - The emergence and development of the epidemic have had an important impact on the outsourcing trend of the gaming industry. On the one hand, the epidemic has impacted the global economy. Gaming companies need to reduce costs to cope with the global economic crisis. Outsourcing has become an option. On the other hand, the restrictive measures of the epidemic have also promoted the development of game outsourcing. Due to the restrictions on the flow of people or gatherings caused by the epidemic, many gaming companies began to look for solutions to remote work and remote collaboration.
- Professional knowledge and skills - Outsourcing services can allow gaming companies to immediately obtain professional knowledge and technical support because outsourcing service providers usually have professional skills and knowledge and can better execute a job or business with large resources. Outsourcing services can also allow gaming companies to focus on their core business.
- Reduced costs - Outsourced service providers usually have extensive experience and expertise, so they can complete the work more quickly, reducing the company's administrative costs. In addition, outsourcing service providers have greater scale and resources, which can take advantage of these advantages to maintain more efficient business operations. Since gaming outsourcing service companies often perform work or business at a lower cost than gaming companies, most gaming companies reduce related costs through outsourcing services.
- Speed and efficiency - Through outsourcing, companies can save a lot of time because outsourcing service providers usually have established effective workflows and systems and have rich experience and professional skills to focus on providing specific services. In this way, gaming companies no longer have to spend time and energy building these systems and processes.
- Resource release - Outsourcing services can allow companies to release internal resources, which gaming companies can use to develop more core business projects or projects.
- Loss of Control - Outsourcing a gaming company may result in losing control over certain jobs or operations. The outsourcing company may not have the same interests and values as the own company, which is likely to have a negative impact on the image and brand of the own company.
- Security risks - The choice of outsourcing services by gaming companies may bring some security risks. For example, the outsourcing company may have access to the gaming company’s confidentiality or customer information. If the outsourcing company does not have sufficient security measures, this information may be leaked out, causing hidden dangers.
- Cost increase - When a company or enterprise chooses outsourcing services, it may increase costs in the long run. It is mainly because the price of outsourcing services may change with the growth of the own company, so additional uncertain costs may be incurred, as well as insurance costs that may terminate the service contract. Therefore, gaming companies should fully evaluate all related costs and risks when using outsourcing services.
- Quality issues - The output quality of outsourcing companies are also likely to be inferior to that of the company's own employees. If the outsourcing company cannot provide high-quality work or business, this may negatively impact the company's service or product business.
Examples of Outsourced Business
Currently, most gaming companies will hand over some non-core business to outsourcing companies to focus on the development of core business. The following are some common types of outsourcing business among TC-GAMING Outsourcing Network clients:
- Platform construction - This part is the white label service everyone is familiar with. Tiancheng Package Network provides a complete one-stop package network service solution for customers who still need to establish their own brands. The Tiancheng network package solution can deliver the platform within 10 minutes, allowing you to save the cost of self-built platforms and various costs significantly.
- Talent recruitment - Recruitment service outsourcing can help gaming companies reduce the cost of human resources in the recruitment department. In contrast, professional recruitment companies can provide more efficient and accurate talent selection.
- Art design - Art design outsourcing can not only help enterprises save personnel costs, but also professional art design companies can provide better and more diversified design styles. In addition, art design outsourcing companies usually have a professional designer team and a complete design process, which can greatly save time and effort for enterprises' power, thereby increasing efficiency and generating more revenue.
- Online customer service - Many gaming companies also outsource online customer service to increase return rates and customer satisfaction and reduce personnel costs. According to the customer data of TC-GAMING, currently, about 25% of gaming companies will outsource some of their online customer services.
- Cash flow payment - Due to the gradual development of the gaming industry in Southeast Asia, China's implementation of the card cut-off policy, and the restriction of bank card acquisition conditions, three-party cash flow payment has become the most commonly used outsourcing service in the gaming industry. In addition, the platform interface method is very mature, so only some gaming companies will choose to develop their own cash flow channels.
All the outsourcing services mentioned above are provided in the one-stop service of TC-GAMING. If you need a boss, please contact us!
Based on the above analysis, in terms of advantages, outsourcing services can effectively reduce company costs and improve work efficiency, especially for complex businesses that require professional knowledge. In terms of disadvantages, if you use outsourcing services for a long time, you may lose control over your work or business, causing problems such as brand image and information security risks.
In addition, effective control of output quality is also an important issue since outsourcing companies may have different interests and values. Therefore, when considering outsourcing, bosses should carefully evaluate all the associated pros, cons, and risks and choose the option that brings their company the most value and benefits. For example, suppose you need to reduce costs, obtain professional technology quickly, save time, and be sure that you can control risks and ensure the output quality of outsourcing companies. In that case, outsourcing is definitely a good choice.