Advantages of Outsourcing Sales and Telesales

May 15, 2023
|By Garegin Hakobyan

advantages of outsourcing sales & telesales

Sales outsourcing has seen significant growth across various industries, and this trend is expected to continue in the upcoming years. Companies are continually seeking avenues to decrease the cost of their sales operations while enhancing overall efficiency and effectiveness. Extensive case studies and industry research provide substantial evidence that sales and telesales outsourcing can assist companies in overcoming specific challenges unique to their business, provided that the sales outsourcing engagement is diligently managed. When implemented correctly, sales outsourcing has proven to be a valuable solution that enables companies to optimize their sales processes, drive growth, and achieve their business objectives.

Sales Outsourcing Advantages

#1. Cost Reduction

Although cost reduction is not the sole factor, it continues to be the primary motivation for companies when considering sales and telesales outsourcing. Engaging the right outsourcing partner can lead to increased product sales, deliver a high return on investment (ROI), and assist the firm in achieving its sales objectives. As per a report published by NNC services, opting to outsource sales functions such as lead generation can yield up to a 43% improvement in outcomes compared to an internal approach.

Another significant advantage of outsourcing sales is that many vendors operate on a fee-based model, where fees are only charged if the external sales force successfully closes deals. This arrangement effectively shifts the majority of the risk to the provider. Consequently, if the outsourced sales team fails to generate new business, the client owes either nothing or only a minimal amount. Additionally, fixed expenses such as employee benefits, overhead, infrastructure, technology, and travel costs are alleviated as they are absorbed by the outsourcing provider.

To achieve maximum cost savings, some companies opt to outsource their sales activities to third-party providers in emerging markets, leveraging lower labor costs. The allure of cost reduction alone makes sales outsourcing an enticing choice, particularly for startups and small to medium-sized businesses (SMBs) aiming to allocate resources towards new product development, business expansion, and supporting other core activities. By outsourcing sales, these organizations can streamline expenses while focusing on crucial areas that drive growth and innovation.

#2. Superior Local/Regional Market Knowledge

Sales outsourcing firms possess valuable expertise and extensive experience in local and regional markets. For instance, a U.S.-based software manufacturer planning to introduce a new product in Asia-Pacific is better off working with a sales vendor located in the region instead of building an internal sales force from the ground up. The outsourcing provider already possesses in-depth knowledge of the regional market dynamics and understands the most effective approaches to engage decision-makers specific to the products and services being offered. Furthermore, the provider boasts a wide network of industry partnerships and connections, facilitating the establishment of a comprehensive leads database without starting from square one. By leveraging the professional representation of a seasoned local sales firm, the client’s business can gain an appearance of greater size and establishment, contributing to enhanced credibility and market presence..

#3. Multichannel Sales Expertise

Outsourcing firms with multichannel expertise are helping companies seize more business opportunities. For instance, a specialty brick-and-mortar retailer can collaborate with a sales solutions provider to diversify their offerings and boost sales by incorporating packaged food products into their portfolio. Companies that lack the necessary resources to engage in multichannel sales can partner with service providers to explore new categories, expand into different formats and territories, and establish competitive pricing strategies. By outsourcing multichannel sales and merchandising functions, these companies can shift their focus towards product development and other strategic activities, leveraging the expertise and capabilities of the outsourcing partner to maximize their growth potential.

#4. Better Conversion Rates

A sales provider specializing in a particular product and market can drive better conversion rates. While conversion tends to be low in all markets, an experienced sales firm knows how to tweak processes to generate high lead volumes and qualify those leads, leading to increased conversation rates over time. Qualified prospects are more likely to want to know more about the product or service. Consistent communication and interaction among prospects, sales executives, and technical staff foster trust and credibility before finalizing the sale. Although the entire process typically spans several months, a top-tier sales firm employs multiple strategies to enhance conversion outcomes.

#5. Better Flexibility

Good sales outsourcing firms don’t rely on one process or tactic to solve multiple problems. They customize the solution based on the company’s unique goals and its product or service. For example, sales outsourcing providers allow a company to ramp up the number of inside sales reps to meet required volumes or reduce the number of field reps as needed. Managers can also hire a single sales executive or a team of consultants for short- and long-term projects. It is much quicker to get your products to market through an experienced sales team than starting an internal team or reorganizing it.

#6. End-to-End Sales BPO

Sales and telesales outsourcing has shifted focus over the years, moving from low-cost, transactional services to more complicated processes. Today, many companies are looking for sales providers that can help them navigate a competitive and rapidly changing market and do more for their business. Some sales executives in larger firms are working with established BPO players for bundled sales solutions that provide not only skilled talent, but also the latest technology and best-in-class processes. However, startups and midsize businesses will continue to work with smaller outsourcing providers that provide traditional offerings and flexible sales solutions. Sales goals within an organization vary, and outsourcing firms understand that diversifying their services and attending to the needs of SMBs are equally important. Providers that focus on providing value are seen to dominate the market.

Telesales Outsourcing Advantages

When properly planned and managed, outsourced telesales generally yield superior results in comparison to in-house telesales. Telesales is a multifaceted endeavor that encompasses diverse geographical regions and necessitates the supervision of a sales firm equipped with local and regional market proficiency. While outsourced telesales may not be suitable for every company, the effectiveness of the campaign is contingent upon numerous factors. Nonetheless, outsourced telesales and telemarketing persist as formidable tools for enhancing both top and bottom line growth. Here are a few advantages of outsourced telesales:

#1. Cost Control

Small and midsize companies often find it impractical to establish a dedicated, full-time team of telesales representatives for sporadic campaigns. Opting to outsource telesales to a specialized provider grants these companies access to skilled telesales professionals whenever the need arises, eliminating the requirement for substantial investments in training and support. Furthermore, larger businesses that maintain captive centers in offshore locations frequently outsource a portion of their telesales activities to offshore providers. This practice is primarily driven by cost savings and the economies of scale achieved by enlisting telesales reps in large numbers.

#2. Top Telesales Staff

Inexperienced telesales reps can negatively impact the bottom line and potentially damage business reputation and credibility. Customers can usually sense the distress of untrained or entry-level telesales staff, which can lead to calls that are terminated quickly or before the agent has a chance to make a pitch. Experienced telemarketers improvise based on the direction of the call, and they offer solutions and opportunities rather than “selling” the product. Outsourcing to an external firm devoted to telesales means that you get instant access to the best reps with the experience and skill to change tactics based on customer need. External telesales reps are used to working in a results-driven environment with access to the latest technology, allowing them to achieve better results.

#3. Strategic Lead Generation

Any company can get leads, but only professionals can get leads that actually turn into revenues. To be successful, lead generation and qualification must be based on strategic data. This is where a good telesales outsourcing provider has an advantage. They have the tools to get the right data and use it to generate high-quality leads and build a dynamic leads database.

#4. Better Flexibility

Successful telesales is based on flexible strategy and a flexible salesforce. Some projects may require one or two telemarketers targeting specific decision-makers, while others may need a larger team to reach out to numerous leads. Internally scaling up or down to meet these fluctuating requirements can prove challenging or even unfeasible. In contrast, a sales solutions provider has the capability to readily adapt its telesales approach to cater to specific needs. They can swiftly augment the number of telesales representatives for a particular project or assign a dedicated telesales executive to handle specific sales opportunities. Additionally, they can deploy an entire telesales team during non-standard hours, weekends, and holidays to ensure comprehensive coverage.

To learn more about outsourcing, you can read our Top 8 Qualities of an Outsourcing Company in the Philippines article. We invite you to follow us on social media and to visit our website to learn more about our services.

banner-finalAbout Us: Sourcefit is a widely recognized US-managed business process outsourcing company based in Manila, Philippines. We proudly serve over 100 clients with a workforce of more than 1,300 employees. Our global centers can serve multiple markets, and our staff is highly proficient in English, Spanish, French, and Portuguese. Whether you need a few or many employees, we can help you achieve your business goals and build high-quality offshore teams.

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Sourcefit’s commitment to excellence has been recognized through numerous industry awards and certifications.

We recently received the Fortress Cyber Security Award from the Business Intelligence Group. Sourcefit was also honored with the prestigious recognition of Best Outsourcing Solutions Provider in the Philippines during the 2023 Business Excellence Awards.

Other awards include: FT ranking of 500 high-growth Asia-Pacific, The Marketing Excellence Awards, Inquirer Growth Champion,  HR Asia Awards, among others.

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