Outsourcing Your Sales Process: You Might Be Crazy As A Fox : from The Business Monthly by Bruce McIndoe

Outsourcing, often referred to as the most important management development of the decade, is based on the principal “if it isn't your company's core competency, then takes the activity or business process and contract it out.” In his book “Strategic Outsourcing,” Maurice Greaver wrote, “It [outsourcing] is an indispensable tool for world-class companies, allowing them to improve their products and services, lower their costs, and enhance their flexibility.”   The Outsourcing Institute surveyed its membership to determine the Top 10 Reasons Companies Outsource. The results were:

  • Reduce and control operating costs
  • Improve company focus
  • Gain access to world-class capabilities
  • Free internal resources for other purposes
  • Resources are not available internally
  • Accelerate reengineering benefits
  • Function difficult to manage/out of control
  • Make capital funds available
  • Share risks
  • Cash infusion

What is sales process outsourcing? Sales outsourcing can refer simply to staffing sales positions from an outside company or outsourcing specific sales process. Traditionally, sales process outsourcing (SPO) has been used by companies that are expanding into new territories or who are developing a sales program around a new product or need to increase revenue. With the growth of the Internet and the number of virtual or networked companies, sales process outsourcing (SPO) is becoming an accepted and preferred practice. When these companies are in the start-up phase, or ready to expand to the next level of corporate growth, they need to focus their resources and attention on their core product or service and not on developing sales processes and hiring a sales team. By outsourcing this business process, these companies can move with speed and leverage the core competency. The advantage of a sales process outsourcing company is that they already have systems and processes in place. As an added benefit, these SPO companies have access to senior executives that would not of been accessible with a companies current sales process. A real synergy begins to develop as you bring these talents together. This recipe for success is not limited to start-ups; any business, even established business could potentially benefit from sales outsourcing. What is Sales Business Process Outsourcing (BPO)? Companies that are getting the biggest bang for their outsourcing dollar are moving to business process outsourcing (BPO), where they are outsourcing some or all of the sales process. Frank Casale, executive director of the Outsourcing Institute, stated, “Business process outsourcing's real benefit is in the value it brings, and that's not necessarily cost savings. Things such as time to market and support may not necessarily show up on a balance sheet, but can be critical to a company's success.” Most companies, 61 percent in a 2002 study, currently outsource one or more of the marketing functions such as advertising or public relations or telemarketing. When moving to BPO, a company needs to focus on specific business processes rather than functions. A good example of a business process is the sales conversion process--moving qualified leads from identification to sold accounts. By outsourcing part of the process, that could include lead generation, qualifying leads and setting appointments, the results are quantifiable and measurable, which leads to better management and enhanced results using the outsourcing vendor's capability in this area. If it is not your core competency, then seriously consider outsourcing so you can focus your time and resources on your core company capabilities. It is extremely important that you find an outsourcing provider that understands your market. Sales BPO providers can be a very valuable asset to companies that are in highly competitive markets, changing their market direction or that need to expand to new geographies. People may think you are crazy, crazy like a fox.