The unique volatility in the current global economy has created a number of different paradigm shifts in the way that companies are doing business. The global business market is extremely competitive, forcing companies to develop new business models that serve to increase profitability and productivity. One business model that has proven highly efficacious over the last decade or so has been the outsourcing of certain business processes. Companies outsource HR operations, administrative responsibilities and more. Recently there has been a new model that seems to be developing momentum — outsourcing the sales operations.
According to Forbes, outsourcing does more than simply help companies cut costs; it allows them to tap into the expertise and resources of service providers, which has the potential to increase efficiency and productivity. This relatively new model that has companies outsourcing their sales operations is completely changing the manner in which businesses are being operated.
Successfully Outsourcing the Sales Operation
Sales outsourcing is not a process that should be adopted without serious consideration. There are challenges that come along with outsourcing certain operations to independent third-party companies. In instances, such as outsourcing HR operations, the reverberations, positive or negative, are felt within the organization; however, when outsourcing an operation in which the third-party company will be in direct contact with customers and clients of the company, there can be negative repercussions. It is important that any sales service provider is able to connect and relate to the culture and identity of the company they are selling on behalf of.
It is also important to conduct the research and review the analytics to determine the long-term impact that making such a significant change will have on the company. When the process is done correctly, it can be very beneficial; however, when it is done wrong it can become a nightmare.
Debunking a Sales Outsourcing Myth
There are a number of postulations that are made by companies when considering the possibility of outsourcing. One of the most common myths and concerns is that the sales outsourcing provider will not have a lucid knowledge and understanding of the company’s products and services. This is actually unfounded. According to Invenio Solutions, “A good sales outsourcing firm will have the capacity to fully embrace the company’s culture and knowledge of any products or services to be sold. This is what they do. In fact, there are many cases in which sales outsourcing companies are able to take the entire sales process to an entirely different level.”
More Than Economic Relief
Most proponents of outsourcing job resources believe that outsourcing does significantly more than save a company money. According to an article by CNN Money, outsourcing certain operation does more good than harm. Although the company that is outsourcing will most likely cut jobs, the company that is providing the services will probably have to add jobs to fulfill the requirements of the outsourcing contract. The primary premise from proponents is that the savings and proficiency that is created through outsourcing allows companies to provide better products and services at a reduced cost, meaning that customers will experience better prices and higher quality products and services. Companies have the option to use the cost savings from outsourcing in one department to staff up in other areas in which they may be understaffed.
When it comes to sales outsourcing, companies are able to save on the high cost of training, which can be excessively high due to the high turnover rate in sales. They will definitely benefit from the expertise of the outsourcing company.
Companies now have options in how they develop their sales strategies, which may include completely outsourcing, internal sales or a hybrid combination of the two. This provides the flexibility to ensure that the company can maximize sales performance and profitability.
