When developing sales strategy, it might be debated whether or not to implement some form of sales outsourcing. As with anything, there are pros and cons with outsourcing any portion of a sales operation and one of the clear pros is that outsourcing sales can decrease cost.
By transferring some of the responsibilities and tasks of the sales department, or some portion of the sales cycle, over to a third-party organization, expenses can be immediately improved and this can have a positive impact on the overall cost structure. Below is a summary of where this cost improvements come from.
One of the first things that a company might do when a sales person is hired is procure the IT equipment and systems needed for that employee. A typical sales employee will at minimum need a PC and a phone, and if they are a field resource, they may also need a cell phone and email messaging device. By outsourcing sales responsibilities to an outsourcing company, there can be immediate cost savings by eliminating the need to procure all of this equipment.
Although, the IT savings do not stop at the equipment. There can also be costs eliminated or avoided in the areas of software, services, and IT support. Each employee will likely need to use a number of software applications, will need some connectivity services for phone and internet, and may need some sort of IT support from a helpdesk. These are all costs that will go away and be transferred over to the outsourcing provider.
There is also a tremendous amount of overhead that can be decreased through sales outsourcing. For each employee, they will need some sort of workspace. If the employee works in a formal office, this space will have some sort of cost in terms of real estate expenses, office furniture, office supplies, etc.
By transferring some sales responsibilities over to a services provider, in most cases a company would be able to avoid many of the overhead expenses that would result from managing a sales resource.
One factor that can often be overlooked is that when frontline sales jobs are transferred to an outsourcer, the management of those sales resources is also transferred and this can help to decrease costs. The outsourcer will be responsible for the day-to-day management of the resources and this can drastically decrease the amount of time and cost from a management standpoint.
Recruiting and Training
In the field of sales, there will always be a decent level of sales staff turnover. With that being the case, there will always be a need to spend time recruiting and training sales resources. By transferring sales activities over to a sales outsourcer, the time and responsibility for recruiting and training will be transferred over and this can have a direct impact on hard-dollar costs.
To have full-time sales resources on staff, in most cases some sort of benefit plan will need to be included as the standard compensation plan. With the rising cost of healthcare, factoring in benefits to the total cost of these employees can make them very expensive. With outsourcing, a business will not be responsible for this cost as the work will now be performed by resources that are employed by another organization, which can help companies to decrease costs and improve their cost structure.
|Launch Pad Solutions provides sales outsourcing helping businesses to decrease costs.
|This article was published on Thursday 11 August, 2011.|
|Back to main topic: Sales Outsourcing
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