What is Sales Outsourcing? The Ultimate Guide

Author:

Aoife Daly

What is Sales Outsourcing? The Ultimate Guide

Author:

Reading Time: 5 minutes

What is Sales Outsourcing? The Ultimate Guide

aoife

Aoife Daly

Content Marketing Manager, Operatix

Sales outsourcing has been hailed as helping businesses accelerate sales, generate leads and enter new markets, all in a highly scalable manner. Developing and managing is often a sales development team is a lengthy, costly process, particularly when there is such a high market demand for the limited number of quality SDRs available. That’s why many people are turning to outsourced sales teams – but what are they, and is it an option for your business? 


Learn about sales outsourcing in this blog, who may benefit from this approach, and what the benefits are so you can decide if it’s right for your business.



Sales outsourcing: the ultimate guide to outsourced sales teams


  1. What is sales outsourcing?
  2. The benefits of outsourced sales
  3. Who needs sales outsourcing?
  4. What to consider before using an outsourced sales team
  5. How to outsource sales



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What is sales outsourcing?


Sales outsourcing is when a business delegates part or the entirety of the sales development function to an external agency. Activities will vary depending on your requirements and the outsourced sales team you choose but typically include outbound sales development, lead qualification, account identification, cold prospecting, appointment setting, cold calling, account-based selling and geographical scaling. 



The benefits of outsourced sales


Sales Outsourcing Benefits


So, why do business leaders use outsourced sales agencies? There are a variety of benefits, many of which may surprise you due to the many common misconceptions about outsourcing sales


Below, we explore just a few of these advantages:



Cost-effective


By utilizing outsourced sales development, you can cut costs associated with hiring and managing full-time employees, including compensation, bonuses, pension, benefits, tech stacks and other expenses. 


Many people are under the impression that having an outsourced sales team is much more expensive than an internal team, however, this is not the case. When comparing the cost of an outsourced sales team and an internal team, the annual cost of a single inside salesperson is estimated to be $134,500 in San Francisco and £83,950 in London. Reputable outsourced sales teams, on the other hand, will charge anything between $10,000 to $15,000 per month. 



Improve time-to-market


Building, managing and maintaining a high-functioning sales development team is not only a costly process but a time-consuming one. As described in our SDR handbook, recruiting, onboarding, training and structuring an internal team is a lengthy process – the high turnover of SDRs only adds to this. 


Sales outsourcing offers instant access to highly experienced sales professionals who are already hired, trained and equipped to sell in different markets. These outsourced sales teams take on the burden of recruitment and management, improving your go-to-market time with faster ramp-up periods, tools and contacts.



Increased flexibility and scalability


Sales outsourcing allows you to grow or reduce your resources much more easily than if you had an internal team. Perhaps you have a new service launch or project that will require more feet on the ground, or you realise that you may need to pull back on the number of SDRs you have due to a change in the budget.


Having an outsourced sales team allows for increased flexibility and scalability at a much faster rate, plus you won’t have to worry about the cost of recruiting and training new employees.  



Increased market reach 


Outsourced sales can help you enter new markets at a much faster pace, particularly if you opt for a company with a multilingual team. It may be that the sales team you have now only speaks English, but you would like to expand your client base to Asian or French markets, for example. 


Hiring a team of native speakers is incredibly time-consuming and expensive due to the demand of the market. By utilising a multilingual sales outsourcing agency such as Operatix, you’ll have access to a more diverse team who are aware of cultural differences in the markets you want to enter.



Leverage expertise and tools


By outsourcing sales development, you’re reaping the experience, tools and training of an experienced team. The team will be equipped and trained to use a tech stack specifically designed to get the very best out of the sales process, as well as already having an understanding of the market. 


A sales outsourcing partner brings their vast experience with other clients in your industry, ensuring they are familiar with best practices, market trends and an awareness of mistakes to avoid.



Who needs sales outsourcing?


The majority of businesses that are considering sales outsourcing do so because they do not have the necessary resources to expand or build their internal sales process. This may be:


  • A collaboration to plug gaps in an existing team
  • A company with a limited budget or time
  • A business launching a new product or service
  • Taking some tasks off of a sales team so they can concentrate on other areas, such as closing deals
  • A business wanting a new direction for their sales development
  • A company experiencing a plateau in their sales pipeline
  • A desire to increase outbound activities, but not enough resources to do so
  • Assistance with lead qualification, lead generation and account identification 
  • Companies moving into new markets


Many use outsourced sales teams as an extension of their internal ones, while others may rely entirely on external SDRs for their sales development function. 



What to consider before using an outsourced sales team


You may be tempted to start the process as soon as you decide to use an outsourced sales team, but there are some things to consider before you do so. To get the very best out of this venture, you should be able to answer the following questions, or at least have a rough idea that can be developed during an initial sales call:


  • What are the company’s financial targets and sales goals?
  • Are there any restrictions around the budget? 
  • How long of a contract can you commit to?
  • What gaps are there in your current sales functions? Can these be filled with an outsourced sales team?
  • What SDR metrics and KPIs are important to track?
  • How many resources will you require? 
  • What does your current and past sales activities look like? 
  • How often do you want to meet with your outsourced sales representatives? What method of communication would you prefer?


By having an awareness of your goals, budget and the like ahead of any sales calls, you can get off to a more efficient start. This will also help ensure your chosen sales outsourcing provider aligns with your requirements.


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How to outsource sales


Once you’ve outlined your goals and have an idea of what you’d like to achieve with a sales outsourcing agency, you can begin engaging with companies. There is a number on the market, making it essential that you utilise platforms like G2 and Clutch to ensure you find one with a good reputation or experience in your vertical. 


Every agency is different, and so their processes will vary. However, it will likely begin with an initial sales call, in which you’ll discuss your goals, expectations, budget and requirements. This will help determine if the agency is a right fit for you, and vice versa, as well as offering you a chance to ask any questions you may have.


Take advantage of this call and come prepared. Examples of questions you may want to ask include:


  • Does the outsourced sales team have experience in your industry?
  • How big is the team?
  • What capabilities and services does this company offer?
  • What clients have they worked with previously?
  • What languages does the team speak? Do you have a global presence?
  • What does the reporting process look like?


Working specifically with B2B software vendors, Operatix has over eleven years of experience in sales outsourcing. Our multilingual outsourced sales team can sell in 17 different languages and is highly experienced in dealing with long, complex sales cycles. For more information on how our sales reps can help you, get in touch with our friendly team.

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About Operatix

Operatix is a Sales Acceleration company specialized in supporting B2B Software vendors to identify new revenue streams, increase qualified sales pipeline, and accelerate channel development across Europe and North America. Operatix has a wealth of experience in working with the biggest tech players worldwide as well as a multitude of emerging software vendors.

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