When Outsourcing Sales Makes Sense ? Part I - MarketStar

Companies have outsourced since the railroads hired Pinkertons to run down Butch and Sundance. It continues today, but margin pressures and digital communications have accelerated the demand. It is commonplace to outsource business processes (BPO) such as accounting, payroll, and human resources. In sales, economies have propelled outsourcing far beyond its roots in call centers.

Today, companies outsource services ranging from evaluating incentive programs to running worldwide sales organizations. The ultimate in outsourced sales is assigning your primary sales responsibilities to a third party. In a tight economy, manufacturers look hard at this option. When the market demands a direct presence, specialist firms (like MarketStar) can quickly deliver a complete sales solution for companies that want to avoid the costs, risks and delays of building their own infrastructure. As management guru Tom Peters said, ?Do what you do best and outsource the rest.?

While most outsourcing programs are launched to cut costs, more and more outsourced sales programs are triggered for additional reasons:

[1] Cost Reduction

Outsourced sales and marketing providers allow companies to benefit from equivalent or even superior levels of service at lower direct costs. The costs of in-house sales and marketing support are often underestimated. Employees need to be recruited, trained, managed and equipped and time and cost associated with turnover may be steep. Outsourcing partners must face these problems head-on and solve them for their clients ? or go out of business.

Freeing your sales team from low-value activities is a significant reduction of hidden costs. Relieved from managing day-to-day administration and support, they are free to focus on other high-value initiatives.

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[2] Labor Pool Challenges

Although many people are looking for work, it is sometimes difficult to source qualified sales professionals with the right experience in specific locations. The best sales outsourcers have a pool of qualified sales professionals to assemble a team just right for your needs.

Note that many sales outsourcers do not have a national presence. Pick a partner that has national coverage to draw from favorable employment markets and the ability to deploy and cover large geographic areas.

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[3] Speed-to-Market, Scalability, and Flexibility

Outsourced specialists design their technologies and processes to scale up quickly, so they can always say ?yes? to new business. Outsourced programs can grow to meet opportunities or demand, or shrink when the market turns down. Clients benefit from this reserve capacity. In cases of acquisition or a change of direction, a manufacturer can scale up or redeploy its efforts faster through a partner than operating alone. In fast-changing markets or companies, the variable pricing of an outsourced vendor helps during expansion or contraction.

While many sales outsourcers offer 100% flexibility by sharing sales professionals between brands, this is not a good idea. Look for outsourcers who offer sales professionals that are dedicated to your brand. This ensures higher productivity, better communication, and maximum sales.

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[4] Risk Mitigation & Pilot Programs

Implementing a new sales channel or team includes risk. Outsourcing a sales motion allows companies to mitigate some of the risk as they are basically ?renting? the resources without long-term commitment. This flexibility and agility also makes outsourcing ideal for experimental and pilot programs.

We not only trial new programs but also test variations to existing programs to optimize results and maximize efficiencies. Our ?Orange Nation Culture? fosters new ideas and encourages continuous improvement. Take a look at our SalesAmp solution to learn more.

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[5] Performance-Focused Culture

A benefit of sales outsourcing is companies hold their outsourced partner to a statement of work and pre-determined quotas. This motivation creates a performance-focused culture, driving outsourced employees to work harder to meet the terms of the SOW. MarketStar?s quota bearing sales teams drive more than $6 billion in sales for our clients, and indirectly influence billions more.

Many outsourcers offer pay-for-performance
plans and as a result share in the risks as well
as the rewards of the outsourced sales program.

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Any of these sound familiar? If your sales organization is facing any of these challenges, we can help! Our Ryan Call will answer your questions about outsourcing sales. Reach him at 801-786-5813 or email rcall@marketstar.com.

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Source: http://www.marketstar.com/blog/partner-channel/when-outsourcing-sales-makes-sense-part-i/

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