Inside sales outsourcing is a strategic approach that allows companies to delegate their inside sales activities to specialized external teams. This method can enhance efficiency, reduce costs, and drive revenue growth.
Explore the benefits of inside sales outsourcing, how to implement it effectively, and why Reliasourcing is your ideal partner for this service.
What is inside sales outsourcing?
As one of the many services of the outsourcing industry, inside sales outsourcing is the involvement of a third-party provider in the management of a company’s inside sales activities which range from lead generation, sales calls, follow-ups, and customer relationship management. The outsourcing of these tasks elevates the business processes, allowing companies to leverage on the expertise and resources of specialized sales teams in achieving significantly better results without the overhead of maintaining an in-house team.
Why do companies outsource inside sales?
Outsourcing has always served towards lightening the load of a business. From cost efficiency, expertise, scalability, and the freedom to focus on core competencies, a company can have several reasons to outsource their inside sales. In-house sales teams usually incur expenditures with hiring, training, and maintenance, whereas these are reduced when outsourced. The expenses for salaries, benefits, office space, and technology are significantly minimized through a partnership with an external provider. These savings can be redirected to other critical areas of the business, such as product development or marketing.
With already-existing teams trained and experienced in the many lines of business, outsourcing inside sales leads to higher conversion rates and sales performance. Simply put, these professionals know what they’re doing with their proven track record to back them up, and leveraging on their expertise can prove effective in ensuring an upward trajectory for your sales and revenue targets. There’s also lesser complications should the company decide to scale up or down given the lack of internal staffing.
Comparing costs and return on investment
And when it comes to comparing costs, outsourcing inside sales offers a significantly higher return on investment (ROI). As mentioned, maintaining an in-house sales team requires substantial investment in salaries, benefits, training programs, and sales technologies. Additionally, there are overhead costs related to office space, utilities, and administrative support. Outsourcing allows companies to eliminate these expenses and pay only for the services they need.
For instance, the cost of hiring an in-house sales representative in the United States can range from is at an average of 82,000 USD per year, excluding benefits and bonuses. In contrast, outsourcing firms in regions like the Philippines can provide high-quality sales services at a fraction of the cost, averaging at around 12,000 USD annually. This cost advantage allows businesses to allocate their resources more effectively and achieve a higher ROI.
The pros and cons of in-house vs. outsourced inside sales
It’s a given there are benefits and drawbacks in a decision between in-house and outsourced inside sales, hence approaching this opportunity should come with a clear understanding of what’s in it for the business. Say, an in-house team offers significant control and alignment with company culture, for a more tailored strategy and direct oversight on sales activities, but this route means higher costs, it means longer ramp-up times. Outsourcing, on the other hand, leads to significant cost maximization, paired with access to specialized expertise and scalability, but equally this means a loss of control and potential inconsistency with maintaining the brand. Understanding these trade-offs is essential for making an informed decision, hence here are the pros and cons to in-house and outsourced inside sales:
How to outsource an inside sales team
When ensuring the success of involving an outsourced inside sales team into your business processes, there are critical steps a company must take into account before moving forward:
- List your objectives. Clearly outline your sales goals and expectations, and determine the specific outcomes you want to achieve, such as increased lead generation, higher conversion rates, or improved customer satisfaction.
- Search for potential partners. Look for outsourcing companies with a proven track record and expertise in your industry, and ensure to evaluate their experience, capabilities, and client testimonials.
- Evaluate proposals. While assessing potential partners based on their experience, capabilities, and cost-effectiveness, request detailed proposals that outline their approach, pricing structure, and expected outcomes.
- Set clear metrics. Establish key performance indicators (KPIs) to measure success as these metrics should align with your sales objectives and provide a clear indication of the outsourced team’s performance, which are along the lines of lead generation rates, conversion rates, sales revenue, and customer satisfaction scores.
- Onboard and train. Ensure a smooth transition by providing necessary training and resources to the outsourced team, and share your company’s sales processes, product information, and customer profiles.
- Monitor and adjust. Continuously monitor performance and make adjustments as needed to ensure optimal results. Consistency with monitoring and adjusting are essential to achieving long-term success with inside sales outsourcing.
Key considerations when evaluating inside sales outsourcing companies
Before jumping into any investment, it’s always best to make an informed choice. Evaluating potential inside sales outsourcing companies require careful consideration of several factors:
- Are they experts in their line of work and do they have the experience to back it up? Choose a partner with extensive experience in your industry and a strong track record of success, and look for providers that have worked with similar businesses and understand the unique challenges and opportunities in your market.
- What technologies and tools do they use and how can they integrate seamlessly into your business? Ensure the provider uses advanced sales tools and technologies to enhance productivity and performance. Some of these tools can include CRM systems, sales automation software, and data analytics platforms.
- Are they culturally-fit with your company’s own culture and values? Select a partner whose values and culture align with your company’s. A good cultural fit ensures smoother communication and collaboration between your internal teams and the outsourced sales team. You can consider factors such as work ethics, communication styles, and customer service standards.
- Does the cost align with your budget allotment? Understand the pricing model and ensure it aligns with your budget since outsourcing providers may offer various pricing structures, some of which are fixed fees, pay-per-performance, or a combination of both.
- Do they have references and client testimonials to prove the success of partnering with them? Outsourcing companies that offer inside sales outsourcing have successfully collaborated with companies like Pfizer in providing talent beyond their expertise, but the experience of business-to-business relations will always differ. Review case studies and speak with the past clients of your target outsourcing company to gauge the provider’s reliability and effectiveness, then request references from similar businesses that have successfully outsourced their inside sales to the provider.
Frequently asked questions
What are the benefits of outsourcing inside sales?
Outsourcing inside sales offers multiple benefits, including cost savings, access to specialized expertise, scalability, and the ability to focus on core business activities. Partnering with an experienced provider can have companies achieve higher sales performance, improve lead generation, and enhance customer satisfaction.
How much does it cost to outsource inside sales?
The costs associated with outsourcing inside sales vary depending on the provider and the scope of services but generally present a more cost-effective solution than maintaining an in-house team. Companies typically save on salaries, benefits, and infrastructure costs, and location plays a key role in determining the average salary of outsourced workers. For instance, businesses can save up to $70,000 per year for each sales development representative (SDR) by outsourcing, as opposed to hiring a full-time, in-house SDR in the United States. Outsourcing providers also offer flexible pricing models, such as fixed fees, pay-per-performance, or a combination of both, enabling businesses to choose a structure that aligns with their budget and sales goals.
How do you measure the performance of an outsourced inside sales team?
The performance of an outsourced inside sales team can be measured using key performance indicators (KPIs) like lead conversion rates, sales revenue, customer acquisition costs, and customer satisfaction scores. Regular reviews and reports from the outsourcing provider can help track progress and identify areas for improvement.
How do you ensure that an outsourced inside sales team performs well?
To ensure that an outsourced insides sales team performs well, establish clear communication channels, set measurable goals, and conduct regular performance reviews. Then, provide ongoing training and feedback, and foster a collaborative relationship with the outsourcing partner. These regular touchpoints and strategic adjustments are crucial for ensuring high performance.
How Reliasourcing helps with inside sales outsourcing
Reliasourcing, a premier BPO company based in the Philippines, provides efficient and cost-effective inside sales outsourcing services tailored to meet diverse business needs. Here’s how we help:
- Skilled Sales Professionals. Our team is trained in advanced sales techniques and equipped with the latest sales tools to drive performance and meet your business objectives.
- Flexible Pricing Models. We offer pricing structures that accommodate a range of budgets, reducing costs related to salaries, benefits, training, and infrastructure, ultimately maximizing your ROI.
- Technology-Driven Approach. We leverage modern CRM systems, sales automation tools, and data analytics to:
- Improve lead management
- Gain insights into customer behavior
- Streamline sales processes
- Customized Training Programs. Our training aligns closely with your company’s sales processes, product specifics, and customer profiles to ensure our teams deliver results from the outset.
- Continuous Improvement. We consistently monitor performance metrics, conduct regular reviews, and work collaboratively with your teams to adjust strategies as needed.
For more details, explore our sales development services.
To sum it all up
Inside sales outsourcing is a strategic approach that can enhance efficiency, reduce costs, and drive revenue growth for your business. Partnering with a specialized provider like Reliasourcing will give you access to expert sales teams, advanced technologies, and flexible solutions that align with your business goals.
Here at Reliasourcing, we offer comprehensive inside sales outsourcing services that include expert teams, cost-effective solutions, advanced sales technologies, and continuous monitoring and improvement. We remain committed to excellence, client success, and being the ideal partner for your inside sales outsourcing needs.
Transform your sales operations with Reliasourcing and achieve the sales success you deserve. Contact us today to learn more about our inside sales outsourcing services and how we can help free your mind to let your business grow.