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Kantar Marketplace  is an  automated market research platform  designed for insights professionals, marketers and agencies who want to test, learn and move faster.  

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Outsourcing vs Insourcing: The Pendulum of Market Research

Chief Data Officer, Profiles Division

Many of you that have been in the marketing research space over the past few decades will have noticed the trend of insourcing, shifting to outsourcing, and back again. It has been a common behaviour that seems to change cyclically with the economy, often described as a pendulum, where the behaviour of companies defines the movement. Those that get tired of paying higher overall costs by outsourcing to external vendors swing the pendulum in one direction and go through the effort of hiring their own insights teams.

Conversely, we have seen several swings in the opposite direction, particularly when economic conditions dictate tightening of belts, where it’s easy to keep the carrying costs of research off the balance sheet in favour of buying on the open market when necessary. It’s not unheard of for an enterprise to shed research talent only to see that group of individuals create their own research company and end up servicing the company they just left. I'm sure if you took the last 30 years of global economic cycles and charted them over time you could fairly accurately predict the swinging of the pendulum between moving research in-house, to outsourcing, but who has time for that? Before we get into predicting the next swing, lets discuss what market research outsourcing is and how it can benefit any organization.

So, What Exactly is Market Research Outsourcing?

Market research outsourcing refers to the practice of hiring external firms or professionals to conduct market research activities on behalf of your company. It involves delegating the tasks of data collection, analysis, and reporting to specialized research firms, allowing organizations to leverage their expertise and resources. This approach enables organizations to access valuable insights and make informed decisions without the need for in-house research teams or the associated overhead costs.

Why Should Organizations Consider Market Research Outsourcing?

Market research outsourcing offers numerous benefits, including access to cost savings, access to experienced professionals, and scalability.

Cost Savings

By outsourcing research activities, companies can save on infrastructure costs, staffing, and training expenses. Moreover, outsourcing allows organizations to scale their research efforts based on their specific needs, without the burden of maintaining an in-house research team at all times.

Knowledge and Experience

By outsourcing market research, organizations can benefit from the extensive knowledge and experience of research firms. These external partners bring industry-specific expertise, sophisticated research methodologies, and access to diverse data sources, enabling comprehensive and unbiased analysis. They can efficiently gather primary and secondary data, conduct surveys, interviews, focus groups, and perform data analysis, providing companies with a holistic view of the market landscape, customer preferences, industry trends, and competitive intelligence.

Flexibility and Scalability

Outsourcing market research also offers flexibility and scalability. Companies can engage external agencies on a project-by-project basis, tailoring the scope and scale of research activities to their specific needs. This allows businesses to allocate resources effectively, focusing on their core competencies while relying on specialized research firms for their market intelligence requirements. Moreover, outsourcing enables companies to gain fresh perspectives and novel insights from external experts, which can lead to innovative strategies, improved decision-making, and a competitive edge in the marketplace.

What next? Will the pendulum swing back to market research outsourcing?

Recently a colleague of mine suggested that the economic contraction from COVID-19 would swing the pendulum back to the outsourcing side, but this time I think things are different. In fact, I think our pendulum’s movement has changed and our straightforward pendulum example has evolved into a Focault's pendulum – it's moving in two planes. A Focault's pendulum is what you get when you swing any item of weight from a string. No matter how hard you try, the pendulum motion is rarely side to side but, more often, is elliptical or circular in pattern.

Why do I think this is what we're looking at with the most recent economic contraction? It's primarily due to the past decade's explosion of technology and data.

How technology and data are changing market research outsourcing

Companies that are now looking at outsourcing are thinking less about unburdening the costs of insights on the enterprise; they're examining how they can simplify outsourcing through automation  and democratisation. Many look at the research systems they're using and have realised that there's a pattern to the types of research they buy, and simultaneously, those research projects they run are increasingly becoming subject to automation. Kantar has already embraced this trend with Kantar Marketplace, providing easy access to research tools that can be broadly deployed across the organisation with less insights-managed oversight needed. We've also seen the explosion of new research DIY tools geared toward making the survey creation process easier for broad ranges of customers – both expert and not.

This is enabling enterprises to be more strategic and makes the pendulum not just swing forward and back between insourcing and outsourcing, but between insourcing, outsourcing, serviced and self-service. As a result, companies are opting to pay for licences to platforms instead of paying for insights staff. They're also opting to invest in tools to enable business stakeholders to have direct access for creating their own bespoke research projects, rather than outsourcing or insourcing the work to insights professionals.

This evolution from a decision of “where on the budget does the work sit” (staff vs. vendors), to reduction and disintermediation of a function, will undoubtedly continue as the global enterprise navigates these challenging times. With the contraction in the economy from COVID-19, it’s highly unlikely we'll next see the pendulum swing in the same pattern we've seen in the past – but it will move from where it has been. One thing I think we will see in this most recent evolution is a pressure on key business stakeholders to increase their workloads to accommodate the new tools they have access to. While the tools are now at a place where anyone can programme a survey, most brand managers or strategy planners have don't have the ability or time to spend getting their projects in and out of field.

Kantar blends the best of both market research outsourcing and insourcing

At Kantar we're acutely aware of the emerging shift from full-service market research outsourcing to more self-service, DIY solutions. This is why we're doubling down on enabling turnkey automation and accelerated service options. With the launch of our new Accelerated Answers portfolio of solutions, our busy clients now have options no matter where the pendulum swings. Whether it's scripting their own surveys in Kantar's self-service tools, taking a project they've run in the past and creating a template it so it's repeatable and automated, or taking advantage of our managed survey services which let clients submit a questionnaire in an email and our team will program, field and return results in as little as 6 hours.

The modern enterprise is flush with technology and options, and with the launch of Accelerated Answers, we can help our clients turbo charge those offers by taking the manual work out of the process while still enabling flexible data discovery and freeing time for critical thinking. With this new product launch, companies now have long term coverage no matter where the pendulum may swing next.

Learn more about Accelerated Answers here.

Want more like this.

Read: 7 things you didn’t know templated survey tools could do

Read: Making the most of first-party data: a recovery playbook

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Kantar's Profiles Blog

Welcome to 2020 a deeper understanding of people for the year ahead.

2019 was a year of tremendous growth and change for us, where the industry took note and recognised us for our approaches to data quality, innovation, leadership and I&D.

We not only moved to a single brand across Kantar, we also implemented our OnePlatform strategy, launched our API-driven Kantar Profiles Network, and enhanced our offer to provide you with access to insights at the speed of life - all without compromising on quality in an increasingly time-poor and data legislative world.

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In building the Kantar Profiles Network, we had a clear aim: helping brands and marketers to better understand their audiences. This commitment has been central to the development of our largest single source of respondents to help, simply and securely, connect our clients to trusted data and make informed decisions. But how exactly do we do this?

Here’s just five of the reasons the Kantar Profiles Network helps improve your access to actionable data…

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2018 Top Challenges & Opportunities in Research

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Top 10 Market Research Companies [2024 Review & Comparison]

Edited by Kamila

Read this In-depth Review and Comparison of Top Market Research Companies to Select the Best Market Research Firm for your Business:

What is Market Research?

Market Research can be defined as an attempt at understanding consumer behavior. This involves gathering data systematically about people or companies – a market – and then analyzing it to better understand the needs of that group of people/companies.

This type of research can be undertaken by the company itself (i.e. in-house) or by a third-party agency specialized in market research.

Table of Contents:

Market Research Companies

Market research company types, faqs for market research firms, comparison of market research agencies, #1) nielsen, #4) gartner, #10) intage, was this helpful, recommended reading.

Advantages of conducting business market research include:

• Identify problem areas in business.
• Identify changing market trends and associated business opportunities as well as new areas for expansion.
• Understand the existing customer’s needs and comparative analysis of services offered to customers vis-à-vis competitors.
• Develop effective strategies and make well-informed decisions about the services.
• Set achievable targets for sales, business growth, and the latest product developments.

There are two types of market research: Qualitative research and Quantitative research .

• Qualitative research is focused on descriptive words and symbols. It usually involves questioning consumers about their product or service consumption experiences or observing them in a marketing setting. The data collection methods used in this case include in-depth interviews, focus groups, bulletin boards, uninterrupted observation, and ethnographic participation/observation.
• Quantitative research is the one that looks to quantify a problem which often involves statistical analysis since it requires significant attention to the measurement of market phenomena. It collects data through audits, points of purchase (purchase transactions), surveys in different modalities (online, phone, paper), and click-streams.

The two ways through which data is collected include Primary Data and Secondary Data.

• Primary data is the original data that is collected first hand by the researcher. The most common primary research tools are surveys, focus groups, in-depth interviews, and observation.
• Secondary data is the data that has already been collected and is readily available. This data is pre-existing public information, for instance , the data shared in public sources like magazines and newspapers, government statistics; commercial sources like paid industry reports; and internal sources i.e. the market data that the organization already has in-house.

The procedures that are used to analyze the data collected include (but not limited to) product testing, market segmentation, advertising testing, usability testing, key driver analysis for loyalty and satisfaction, awareness and usage research, and pricing research (using techniques such as conjoint analysis).

Below are the top 10 Market Research Companies by revenues (2018):

Upon comparing the revenues of the top 5 Companies for 2019 as well, these 5 Companies have been observed to retain the top slots with some minor changes in the rankings.

Market research companies can be large corporate companies, small business companies, or product-specific companies. These companies are usually categorized based on clients they take up rather than based on market research work they undertake.

#1) Syndicated market research firm: Such companies look at the market requirements and then prepare their reports accordingly. These research reports are for the open market rather than for specific companies.

#2) Custom market research firm: Such firms offer customized market analysis basis for the client’s needs.

#3) Specialty market research firm: A firm with a focus on one specialty falls under this category. Such firms are involved with an in-depth analysis of the client’s specific requirements, for instance , conducting market feasibility studies for a soon to be launched pilot product.

#4) Online market research firm: These firms are considered to be useful for online marketers, bloggers, and online e-commerce portals. They connect the brands/website owners with their desired users while also conducting online analysis at the same time.

This online analysis enables the website owners to land up on top in search engines, understand the gist of their brands in the online community, and thereby improvise their existing product lines. Brands, for instance, taking a cue from the ‘trends’ showcasing top websites like Twitter and Facebook.

Pro-Tip: Once the said company has decided to hire a market research firm, the following factors need to be considered before choosing the one:

• The extent of understanding of its sector by the market research firm.
• Capabilities of the market research firm – qualitative/quantitative/both.
• Timelines expected by the company vs. promised by the firm.
• A clear understanding of the company’s research objectives and methods to be used by them – focus groups vs. survey vs. secondary search.
• The company’s scale of project and affordability as a market research agency usually does not takes on projects with a budget below £3,000. So, for small-scale field research, the best option may be a freelance researcher.
• Cost calculations as a majority of market research firms charge per hour. However, researching the published material is considered easier than conducting focus groups and surveys.

Q #1) Which is the best methodology for undertaking Market Research?

Answer: Depending on the needs and objectives of the market research i.e. measuring or exploring, the company can choose between focus groups and in-depth interviews as part of a qualitative approach or online surveys as part of a quantitative approach.

Q #2) Should the research be done as in-house or get expert help?

Answer: The first question that arises once a company has decided to undertake market research is whether to conduct the study in-house or do it using a third-party help. While hiring a third-party market research firm ensures confidentiality (for surveyed customers) and expertise ait increases the overall cost allocated for a project.

The ideal solution therefore of hiring a market research firm or not boils down to the cost/benefit analysis. Once the company is aware of its research budget, which as per Philip Kotler, is 1-2 percent of company sales, it can compare the cost of hiring a marketing research firm with the cost of paying one or more of its employees to do the work.

The end objective of the study expected should also be kept in mind.

Q #3) How much does market research cost?

Answer: Costs vary greatly depending on the scope and methodology. A professional survey usually starts from £1,000 while in-house research costs not much money but time.

A 1,000 complete telephone survey will be costlier than a 100 complete online survey while 50 in-person interviews will be costlier than 10 in-depth interviews conducted over the phone. A 10-question survey targeted at 200 general consumers will be less expensive than a 40-question survey targeted at 800 B2B C-Level decision-makers.

Q #4) How much time does market research take?

Answer: Qualitative research takes comparatively lesser time for completion than a quantitative one.

An email survey is completed (~75%) usually within 24 hours of the initial invite and an online survey project can be done in ~2 weeks while focus groups (using 2 groups) and in-depth interviews typically last 4 to 5 weeks owing to the time involved in recruiting participants in addition to the fieldwork.

List Of Top Market Research Companies

Review of the top market research companies:

Nielsen, an S&P 500 company, offers measurement and data analytics services on a global scale. It claims to cover more than 90 percent of the world’s GDP and population through its services.

The services delivered include marketing and media information, analytics, and retailer and manufacturer expertise related to what and where consumers buy and what consumers read, watch, and listen to. The Company caters clients primarily from the CPG, media, and advertising industries.

Headquarters: New York, United States Founded In: 1923 Employees (2018 and 2019): 46,000

Core Services: Measurement and data analytics – Consumer Purchasing Measurement & Analytics; Media Audience Measurement & Analytics. The former includes Retail Measurement Services, Consumer Panel Measurement, and Analytical Services while the latter includes key activities of Planning, Activation, Audience Measurement, and Advertising Effectiveness.

Revenues (2018 and 2019): USD 6.5 billion

Clients: Top clients include NBC Universal/ Comcast Corporation, Nestle S.A., The Coca-Cola Company, Twenty-First Century Fox, The Procter & Gamble Company, and the Unilever Group

Website: Nielsen

IQVIA, formed through the merger of IMS Health and Quintiles, is a Human Data Science Company serving the life sciences industry. The company has been able to integrate information, analytics, domain expertise, and technology through its IQVIA CORE solution, thereby enabling its clients to tap into a deeper understanding of human behaviors, diseases, and scientific advances.

Headquarters: North Carolina and Connecticut, United States Founded In: 2016 Employees: 58,000+ (2018); 67,000 (2019)

Core Services: Research & Development Solutions, Technology & Analytics Solutions, and Contract Sales & Medical Solutions. The Technology & Analytics Solutions offerings include Technology platforms, Analytics and consulting services, and Information offerings.

Revenues (Technology & Analytics solutions): USD 4.1 billion (2018); USD 4.5 billion (2019)

Clients: The company serves other companies from the life sciences industry including pharmaceutical, consumer health, device and diagnostic, and biotechnology. Nearly all of the top 100 global biotechnology and pharmaceutical companies, measured by the revenue, are its clients.

Some of the clients identified include Noble Analytics & Consulting, Minerva Surgical, PatientPoint, Young & Ellison LLC, Providence Health and Services, Nova Biomedical, and Georgetown University.

Website: IQVIA

Kantar, a part of WPP, is a data, insights, and consulting company. The company offers its services across the entire lifecycle of sales and marketing with research solutions ranging from in-depth qualitative research expertise to the latest AI-based technology.

In April 2019, Kantar unified all its legacy brands, including Kantar Consulting, Kantar IMRB, Kantar Health, Kantar Media, Kantar Public, Kantar Millward Brown, Kantar Worldpanel, Kantar TNS, Lightspeed, all country-specific brands into Kantar. Further, WPP sold Kantar’s 60% stake to Bain Capital in Dec 2019 and hence shown as discontinued operations by the WPP group as of Dec 31, 2019.

Headquarters: London, UK Founded In: 1993 Employees (2018 and 2019): 30,000

Core Services: Research capabilities include Consumer Panels, Data Solutions, Managed Services including Survey Design & Fielding, DIY Solutions, Panels & Audiences, Virtual Reality, Eye Tracking, and Behavioral Sciences.

Revenues: USD 3.4 billion (2018); USD 3.0 billion (2019)

Clients: Kantar serves over half of the Fortune 500 companies. Some of them include Diageo, Volkswagen, Unilever, SAB Miller, PepsiCo, European Commission.

Website: Kantar

As a member of the S&P 500, the company is engaged in providing research and analysis solutions to the computer software, hardware, communications, and related information technology industries.

The company research services are offered through a subscription-based model that includes on-demand access to published research content, direct access to a network of approximately 2,300 research experts located globally, and data and benchmarks.

Headquarters: Connecticut, United States Founded In: 1979 Employees: 15,173 (2018); 16,724 (2019)

Core Services: Research, Conferences, and Consulting. Research service is offered to clients through reports, briefings, access to its research experts, proprietary tools, peer networking services, and membership programs.

Revenues (research segment): USD 3.1 billion (2018); USD 3.4 billion (2019)

Clients: Gartner serves 73% of the Global 500 companies. It serves 15,600+ distinct organizations in more than 100 countries, Coca-Cola Bottling Company United being one of them.

Website: Gartner

Ipsos is a market research company offering advertising, media, public opinion, marketing, and social research services.

Headquarters: Paris, France Founded In: 1975 Employees: 18,130

Core Services: Brand Health, Creative Excellence, Clinics & Mobility Labs, Innovation, Ipsos MMA, Ipsos UU, Market Strategy & Understanding, Social Intelligence Analytics (excl. pharma and the public sector), Observer, Customer Experience, Mystery Shopping, Market Measurement, Quality Measurement, Retail Performance, Audience Measurement, ERM, Media Development, Corporate Reputation, Public Affairs, and quantitative and qualitative research services for Pharma sector

Revenues: USD 2.1 billion (2018); USD 2.2 billion (2019)

Clients: Some of the clients include Budweiser, Clorox, Ad Council, and Zillow.

Website: Ipsos

GfK is a market research institute engaged in conducting consumer response tests, providing data as well as analysis of consumer purchasing behavior, and tracking retail sales data for consumer technology products.

It has been able to provide one of the world’s largest retail panels for technical consumer goods and user experience (UX) research and design for a large number of devices and interfaces.

As of October 2018, Ipsos acquired four global divisions of custom research business of GfK: Customer Experience; Experience Innovation; Health; and Public Affairs.

Headquarters : Nuremberg, Germany Founded In: 1934 Employees: 13,000+ Revenues: USD 1.6 billion (2018)

Website: GfK

Information Resources, Inc. (IRI) is engaged in providing big data and predictive analytics solutions to CPG, retail, OTC healthcare, and media companies. The company claims to be catering 95% of CPG, health and beauty, and retail companies in the Fortune 100 list.

Headquarters: Illinois, United States Founded In: 1979 Employees: ~5,000 Revenues: USD 1.2 billion (2018)

Website: IRI

Dynata is a provider of first-party data contributed by business professionals and consumers. The company claims to be one of the largest providers of technology-based research solutions and online panel data based on opted-in data.

The company is a result of a merger between Research Now and SSI that happened in December 2017 and was rebranded as Dynata in January 2019.

Headquarters: Texas, United States Founded In: 1999 Employees: ~5,000 Revenues: USD 0.509 billion (2018)

Website: Dynata

Westat offers research services to help clients in improving outcomes in health, social policy, education, and transportation. Westat undertakes studies on health conditions, employment, medical expenditures, science, technology, and earnings.

Headquarters: Maryland, United States Founded in: 1963 Employees: ~2,000 (only HQ) Revenues: USD 0.506 billion (2018)

Website: Westat

Intage offers marketing research services as well as marketing system solutions and consulting services based on data obtained from custom research and panel research. The company primarily serves consumer goods clients, companies from the services sector, and government agencies.

Headquarters: Tokyo, Japan Founded In: 1960 Employees: 2,829 Revenues: USD 0.489 billion (2018)

Website: Intage

Nielsen, Ipsos, and Kantar are the three top picks for a majority of research offerings globally. In retail measurement, Nielsen along with Information Resources, Inc. (IRI) are the two major players while consumer panel services and analytics services witness Nielsen, GfK, Ipsos, Kantar as the major ones.

For audio audience measurement, Nielsen, along with Kantar and GFK, are the global players while in television audience measurement, Nielsen, Kantar, GfK, and Ipsos are the major ones.

The emergence of new technologies, particularly software technologies associated with artificial intelligence and machine learning, has a significant impact on the research market. Further, the very nature of the research conducted has changed owing to the advent of other technologies such as virtual reality.

Companies like Ipsos and Nielsen have already adopted artificial intelligence and machine learning while IQVIA has adopted machine learning.

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Kantar Foresight Co-Lab Reports

Explore how important topics will take shape in the near future with these informative reports from kantar’s foresight practice..

Beyond Ozempic

Planning for the Next Five Years of AOMs.

Navigating Confrontational Consumerism

How should brands anticipate and safeguard against this new breed of consumer activism?

Disrupted Consumers, Dynamic Commerce

What will commerce look like in 2025 and beyond, and how will consumers engage with this dynamic world?

Gen Z and Sustainability

How will Gen Z’s unique values, attitudes and expectations redefine where brands and businesses need to take action on sustainability?

Generative AI 2028: The Human View

How will people integrate generative AI into their lives as the technology evolves and what will it mean for businesses?