Why Going To Outsourcing Of The Sales Process And What Benef

Why Going To Outsourcing Of The Sales Process And What Benef

From Olga Iskara

Why Going To Outsourcing Of The Sales Process And What Benefits It May Bring

Support this campaign

Subscribe to follow campaign updates!

More Info

Sales are the cornerstone of the existence of any profit-based company. But with time-consuming HR processes, hard scaling up and down, and unpredictability of the business environment, every wise manager of any big enough company ponders about outsourced sales and marketing at least once. And some actually go for it to have a great chance of grabbing tangible benefits, which we are considering below.

 

Models of sales outsourcing

There are two basic models of sales outsourcing: full and partial. With full, all your sales will be off-house, with the entire process from generating a lead to the closure of a deal will be done by an outsourced team. In this case, you won’t have any hired sellers, only some process managers. With partial, this can be further divide into vertical, horizontal, and geo-based. 

With vertical, only a part of the process is made by an external team, like the attraction of a client and turning them into a quality lead, whereas a deal closure is made by a highly efficient internal team, as well as managing the rest of the client’s lifecycle. 

With horizontal, you might have both in-house and off-house teams working on the same market selling the same or different products (which might effectively create competition between them to spur up the efficiency of your in-house sellers). 

With a geo-based model, you’ll assign sales on different goes to different local sales teams, which have deep knowledge about local markets. In a partial model, your in-house sales team with shrink in number from mildly to significantly. 

 

Financial benefits of outsourced sales

1.     Cutting costs. You can hire sales outsourcing companies on cheaper markets, thus, saving on the salaries of an average salesman, not compromising (much) on quality. But even hiring some of the local companies might mean lower costs per seller due to more optimal processes in these companies and a more balanced sales approach.

2.     Rent & office. When you’re not having hired personnel anymore, you no longer need to rent offices for them. Associated costs are cut as well: cleaning and other office support, hardware, furniture… You, probably, might relocate your entire company to a new place to cut even more costs.

3.     HR connected to the sales team. That’s a large chunk: find, hire, onboard, control, rotate, train, fire…

4.     Tech: high-end professional IT software for sales can be extremely costly. You won’t need it anymore if you’ll have it fully outsourced.

 

Expertise and time-saving benefits to outsource sales

A company you hire might have even bigger expertise than your company has in sales, which includes software experience, building sales processes and reporting management expertise and an already bulky enough client database.

When anyone in the out-house team takes a sick leave, they will be replaced immediately by teammates. When there is a new product to sell, getting started with it can be much quicker. In these and similar cases, off-house teams are prompter and more flexible than an in-house team.

 

Scalability & flexibility in outsourcing sales

Not only might you need quick expansion when you want to seize new markets swiftly. But, as Covid-demics show, you might need to shrink swiftly as well. Also, if you have enough leads generated so as to fully complete the sales plan for a while (given the production capacities if you’re not some software company), you’re able to stop using the off-house team’s services momentarily, the same immediately starting using them again when required. That’s not something you could do with an in-house team.

 

Expansion & risk reduction

When you need to quickly open new markets for yourself, with outsourced teams, you can start working on them nearly immediately, being provided with expertise, which you wouldn’t gain momentarily with an in-house team. Also, by doing so, you won’t have any mistakes connected to hiring wrong people or ones who can’t operate in new markets without making critical mistakes. Also, geo-knowledgeable teams will surely work within local legislation, requirements, language, and other things. Even if you’re mistaken with one outsourced team, you can always fire it and hire another, which would still be easier and faster than working on building and training an in-house team. 

 

Afterword

Before you get to the process of outsourcing sales teams, you have a set of questions to deal with:

  • How do you reduce or eliminate the risks connected to outsourcing – stealing your client database, intruding into your processes, making worse numbers than your in-house sales team was showing, how do you measure KPI and do reporting, and how you can affect and promptly change the sales outcomes of the outsourced sales team?
  • What part of the sales process will you leave for the in-house team and what will you pass to a contractor?
  • How will the structure and position salaries in your company change after such transition?
  • What processes and goals of your company will be affected?
  • What other processes will you want to outsource? 

This is not a one-night switch turn on/off but a voluminous work, which can eventually affect your company dramatically. So the entire hierarchy of your company shall be interested and closely involved in this change process to be successful. 

 

Campaign Wall

Join the Conversation

Sign in with your Facebook account or