Dispelling The 7 Common Myths About Outsourcing Sales in Business

outsourcing sales in business

Yes, you can effectively outsource strategic business operations. Contrary to popular belief, outsourcing is not limited to customer support and bookkeeping. Outsourced sales in business is a time-tested method of gaining a competitive edge, enhancing in-house capabilities, and freeing up more internal capacity. Now you can outsource lead generation, cold calling, email targeting, customer support, and much more!

Thus, why are some managers averse to outsourcing sales operations?

Initially, outsourcing plans were purely focused on cost reduction and profit maximization, with little attention paid to conveying the company’s voice and culture.

Today, strategic outsourcing has transformed the way businesses operate. Outsourced sales teams have matured into a seamless augmentation of your on-site resources. They aid in expanding into new markets, lowering long-term sales costs, and increasing overall sales income.

Regrettably, certain persistent myths regarding outsourcing sales in business prevent owners from understanding the larger picture.

I would want to dispel these myths and some of the most prevalent ones concerning outsourcing sales in business because then you can make correct, educated business decisions.

Myth 1: Outsourcing sales eliminates the need for sales personnel

In most circumstances, outsourcing sales is not intended to replace your internal sales staff. Outsourced sales teams are typically used to fix major gaps in your present sales process or scale your business by entering new markets. They strategically assist current sales efforts by enhancing the internal likelihood of success and efficiency.

For instance, if your present staff is particularly adept at completing sales, you may choose to outsource client qualifying efforts to help feed their pipeline. In this manner, they may concentrate on their strengths and easily meet, if not surpass, their targets. 

Suppose your account managers are responsible for cold contacting and qualifying. In that case, you should undoubtedly consider outsourcing these early sales phases to save money and energy. 

A reputable outsourcing partner would never propose a structure that is self-cannibalizing. He will establish a sustainable fit between in-house and outsourced sales, for example, by operating in distinct account segments or stages of the sales cycle.

Myth 2: Outsourcing sales in business is just for lead generation

This may have been true many years ago, but lead generation is still the most often outsourced sales activity. However, sales outsourcing firms have developed expertise in business growth and associated consulting. As a result, many now provide their expertise “as-a-Service.”

Outsourcing companies are increasingly offering consultancy services. For example, they can assist businesses in expanding into new markets by concentrating on regional growth or diverse target categories. They build go-to-market strategies that enable you to sell efficiently outside of your primary market. Another effective strategy is to obtain access to various sales abilities to launch a new product in the market.

Outsourcing sales also addresses scalability concerns. Outsourcing partners can supply temporary sales reps, providing greater flexibility in executing specialized campaigns, sales activities, and market research.

Myth 3: Outsourcing sales is only a cost-cutting measure

Cost reduction is a primary consideration for the majority of businesses considering outsourcing services—and for a good reason. Without a doubt, outsourcing operations provide significant financial benefits: all administrative and management costs associated with hiring, training, employee compensation, and office space rental are supported and primarily covered by the outsourcing firm.

Indeed, 70% of businesses surveyed in Deloitte’s 2020 Global Outsourcing Survey see cost savings as their primary motivation for outsourcing.

When it boils down to sales outsourcing, pricing should not be the major consideration when picking a partner. Sales and business growth are critical components of your company’s strategy. Salespeople are not typical call center agents; they are highly competent individuals who have been trained in sales strategies.

Working with a professional team that knows your business and is laser-focused on your objectives comes at a cost. Still, you should notice a reduction in your cost of sales over time. Assure yourself that outsourcing firms can provide skilled individuals at a fraction of the expense of in-house sales.

Myth 4: Outsourcing sales is an expenditure

Nothing that costs money qualifies as an expense. High-growth businesses spend consistently in the development and maintenance of their operations, seizing any chance to accelerate their growth.

In that perspective, outsourcing correctly should not be viewed as a cost; rather, it should be viewed as an investment in long-term sales productivity and profitability. The expense of establishing an outsourced sales staff will eventually be recouped through increased revenues and the creation of new possibilities.

Outsourcing firms have developed expertise in developing and executing sales strategies. They open up new income streams and provide your firm with access to a worldwide pool of salespeople with a track record of success.

Additionally, outsourcing sales in business frees up internal resources and allows you to devote more time to your core strengths and business activities.

Myth 5: Outsourcing sales is a rapid victory for the team

To deliver the finest service possible, an outsourcing agency must thoroughly understand your business procedures and objectives.

While it is undeniable that outsourced salespeople work quicker and are more efficient, they do not anticipate immediate results. Allow sufficient time for them to become familiar with your value offer, rehearse their pitch, and create a pipeline before expecting results. This ramp-up stage is critical for long-term sales efficiency and profit maximization.

Outsourcing sales and marketing also involve your commitment: documenting your procedures, training the external workforce, providing sales enablement materials, and maintaining open communication. Active participation in the collaboration is critical to the operation’s success.

When outsourced sales become an extended version of your in-house sales, they become a genuine asset. This entails a long-term relationship in order for the agency to give higher-quality services with more precision. Once it maintains a consistent pace of performance, victories will arrive consecutively and consistently.

Myth 6: Outsourcing sales is exclusively for large organizations

A widespread misconception is that sales outsourcing is only beneficial to established organizations. Companies of all sizes and types share a common goal: to increase efficiency, revenue, and market share. 

Indeed, sales outsourcing may provide a significant competitive edge for small and medium-sized organizations, allowing them to expand more quickly.

Outsourcing sales operations is particularly attractive for start-ups looking to decrease overhead and operational expenditures. On the other side, they acquire invaluable expertise from sales partners who have substantial market experience. In highly competitive marketplaces, information and market intelligence may be game-changers in the start-up ecosystem.

Myth 7: Outsourcing sales entails a loss of control

Sales outsourcing it is a collaborative effort built on credibility and transparent communication.

It is critical to choose the correct vendor to maximize the benefits of an outsourced sales crew. A reputable outsourcing firm will guarantee that you have the same amount of insight and transparency into sales activities as you would if your staff were in-house.

With the proliferation of cloud-based solutions and the virtualization of the workplace, managing and interacting with virtual workers is easier than ever. The outsourcing business has adopted, and improved remote work approaches for sales operations for many years. For example, they enable instant access to daily statistics on your worldwide team’s performance.

Additionally, your partner should create a robust monitoring and business evaluation system to communicate market information.

Conclusion!

To summarize, outsourcing sales sustainably demonstrates several benefits. Whether you’re looking to augment your present sales staff, obtain pre-closing help, or lower your sales costs in the mid-to-long term while increasing your sales efficiency, outsourcing sales is a genuine advantage when done correctly. 

Finally, outsourcing is not a function of company size; it is a function of your desire to work with a seasoned partner to increase your sales capability and capacity while maintaining complete control.

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Alex Valassidis
Alex Valassidis

Author

Alex is a Managing Director and Supervisor at Vparagon, a sales consultancy that helps companies expand and accelerate their sales in new markets.

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