Sales outsourcing has become increasingly popular for companies looking to support their sales teams without the overhead costs of recruiting, training, and managing in-house staff.
According to the 2024 survey by Deloitte, 80% of executives are planning to maintain or increase investment in outsourcing. This means sales outsourcing is on the rise!
However, like any business decision, there are both advantages and potential drawbacks to this strategy.
Key takeaways:
The pros of sales outsourcing are:
The cons of sales outsourcing are:
In this article, we’ll explore in-depth the pros and cons of working with a sales outsourcing agency or an outsourced sales team—including inbound sales outsourcing, outbound sales outsourcing, and B2B sales outsourcing.
What is Sales Outsourcing?
Sales outsourcing involves delegating part—or all—of your sales processes to a third-party provider. These sales outsourcing companies can handle:
- lead generation
- prospecting
- closing deals
- post-sale customer support
- and more.
👉 Related: Why hire a sales virtual assistant?
For SaaS sales outsourcing, providers often specialise in navigating complex subscription models, free trials, and product demos. This helps software companies streamline their sales efforts! 👌
Pros of Sales Outsourcing
Leveraging an outsourced sales team allows you to tap into specialised talent, reduce operational costs, and quickly scale your efforts based on changing market demands.
1. Cost Savings and Scalability
Our Sales Manager, Alexandra Brooks, ensures that outsourcing is the right fit for businesses looking to delegate tasks to us.
According to Outsource Accelerator, outsourcing can cut labour costs by up to 70%! 😮
Outsourcing often reduces overhead expenses associated with recruiting, training, and retaining an in-house sales force. This means you pay only for the level of service you need, and you can quickly scale up or down based on market demands.
2. Access to Specialised Expertise
Over 1 in 3 small businesses outsource at least one business process, according to Clutch.
Because of this, many top sales outsourcing companies offer remote staff trained in specific industries like B2B sales outsourcing or SaaS sales outsourcing.
So if you hire through these companies, your chosen staff stays updated on best practices and new tools, ensuring your sales strategies remain cutting-edge.
👉 Related: How we hire the top 10% of remote talent
3. Faster Market Entry
A well-established sales outsourcing agency often has a proven track record, existing databases of prospects, and refined outreach processes. This can help your business enter new markets much faster than if you were starting from scratch.
At Outsourcing Angel, we have a talent pool of hundreds of VAs pre-vetted to support varying business needs.
4. More Focus on Core Business Activities
In Deloitte’s Global Outsourcing Survey, 65% of businesses reported that outsourcing helps them focus on core functions.
By delegating sales tasks, you free up your internal resources. Examples of sales tasks you could outsource are:
- outbound sales outsourcing for cold outreach
- or inbound sales outsourcing for customer inquiries.
👉 Related: [FREE LIST] 70 Repetitive Tasks You Can Outsource
Leadership and in-house teams can then concentrate on strategic decision-making, product development, or customer success 💯
5. Performance Accountability
An outsourced sales team typically operates on performance-based contracts, tying their success directly to measurable results like closed deals or qualified leads.
This can foster a results-driven environment beneficial to your bottom line.
For example, outsourcing to our remote sales staff led to a record-breaking 6-figure monthly sales for Watch Smoke Alarms.
👉 Case study: How to generate 6 figures monthly sales after hiring remote sales staff
Cons of Sales Outsourcing
Trusting a third party with your sales processes can lead to challenges, including reduced control, possible brand misalignment, and reliance on external vendors.
1. Reduced Control Over Processes
Handing your sales operations to a third party means you have less direct oversight. While reputable sales outsourcing companies maintain transparency, you still relinquish immediate control of day-to-day activities.
2. Possible Brand Misalignment
Outsourced representatives may not always embody your brand’s values or voice as authentically as in-house employees. This risk can be mitigated by thorough onboarding and continuous communication 👌
3. Data Security and Privacy Concerns
When you engage in sales outsourcing, you inevitably share sensitive data, such as customer contact information. Ensuring your provider follows strict data protection protocols is crucial to avoid any compliance issues.
4. Dependency on External Providers
Outsourcing too many of your critical revenue-driving functions can make your business reliant on external providers.
If a contract ends abruptly or the vendor underperforms, it may disrupt your entire sales pipeline.
5. Communication Gaps
Different time zones, cultural nuances, or language barriers could lead to communication challenges. Frequent check-ins and clear service-level agreements (SLAs) will help lessen these risks.
How to Make Your Decision?
Choosing whether to outsource your sales function depends on your company’s unique goals, resources, and growth trajectory.
Here are some key steps to guide your decision-making:
1. Assess Your Needs
Determine if you require outbound sales outsourcing, inbound sales outsourcing, or a mix of both.
Also identify any specialised areas, like B2B sales outsourcing or SaaS sales outsourcing, and find providers with proven expertise in those domains.
2. Evaluate Providers Thoroughly
Look for top sales outsourcing companies that offer transparent pricing models, success stories, and measurable KPIs.
You should also check if they follow industry regulations and data security standards—like we do! 😉
👉 Related: Data security tips when working with remote staff and virtual assistants
3. Set Clear Metrics and SLAs
Define what success looks like in terms of metrics and integrate these metrics into your vendor contract. These could include:
- number of qualified leads
- conversion rates
- percentage of revenue growth, etc.
Try to establish regular reporting intervals to ensure accountability and alignment as well.
4. Do a Test Run
Before fully committing to an arrangement, consider a test run. This allows you to test the effectiveness of the outsourced sales team in a controlled environment, minimising risk.
Sales outsourcing increases your bottom line
Sales outsourcing can be a powerful tool for companies aiming to reduce costs, scale effectively, and tap into specialised expertise.
Whether you opt for a full-service sales outsourcing agency or target specific functions like inbound sales outsourcing and outbound sales outsourcing, the benefits can be significant despite potential drawbacks.
For many businesses, partnering with top sales outsourcing companies offers a competitive edge, which frees up internal teams to innovate and drive long-term growth.
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