Benefits of Outsourced Sales
While many smalls businesses and startup companies embrace outsourcing for their IT, financial and human resource needs as standard operating procedure sales outsourcing has still not hit similar adoption levels. However over the next two years this trend may be changing. And according to Dun & Bradstreet research, outsourcing sales and outsourced marketing is now the third most considered area for outsourcing after finance and IT. And according to several reports from Forrester and Dun & Bradstreet, sale outsourcing is expected to increase by 3X to 5X over the next several years.
Many outsourcing sales decisions begin with the goal of getting instant accesses to talent, processes and marketing expertise that is not currently accessible within the company. Outsourcing is generally explored primarily to drive smarter, faster and more efficient topline revenue growth. But outsourcing sales can also provide this topline growth while helping to provide some solid financial and business benefits beyond simply driving more sales. These benefits include:
A reduction of direct costs – Outsourcing will provide the economies of scale. Outsourcing sales and marketing companies offer the equivalent sales and marketing functions at lower direct cost than in-house companies. This is not driven by paying sales reps less than you would need to on your own. It is primarily driven by the direct sales management costs you would incur building a team on your own. In additional outsourcing sales companies will typically be located in more economically favorable employment markets than if you need to employ in more competitive locations like the Bay Area, New York City, Boston and Southern California.
A reduction in indirect costs – The expense of in-house Marketing and Sales support are typically underestimated. Sales reps and marketers need to be recruited, trained and given technology, software and hardware to do their jobs. When you combine these costs with employee churn your indirect costs can be doubled or tripled before getting an effective team in place. A outsourcing company has the experience to resolve the issues as part of the daily course of doing business so you don’t need to. This allows you to focus your internal team’s attention on high value activities which leads to more productivity and a significant reduction of indirect costs.
A reduction of opportunity costs – Focused outsourced programs improve sales coverage. More leads are qualified, geographic regions or channels are covered in greater depth, and more sales can be wrung from secondary sources. In these and other cases, sales are recovered from previously overlooked sources, improving sales performance at low marginal cost.
Turn fixed costs to variable costs – Sales growth is rarely a clean and systematic month over month increase. When a company is going through a growth spurt, sale outsourcing can help a company deal with expansion or contraction by turning a fixed cost into a variable cost. Outsourcing sales allow companies to grow a sales organization or launch a new product without the need for investing in the fixed costs of adding and supporting headcount.
To learn more about Gabriel Sales approach to outsourcing sales we invite you to visit our outsourcing services page.