Pros and Cons of Sales Team Outsourcing: Is It the Right Move for Your Business?

11 mins

Are you tired of managing a sales team while looking for ways to reduce costs and improve operational efficiency? Or, you’ve heard of revolutionary sales technologies and methods (such as Chat GPT for lead generation), but you don’t have the expertise to put them to use? Well, sales manager outsourcing might just be the solution you need. In this article, we will explore the pros and cons of sales outsourcing and try to help you determine whether it’s right for your business.

What is sales team outsourcing?

Outsourced sales and outsourced sales reps mean hiring an external company or professional team to handle your sales operations. An outsourced sales team can take many forms, such as lead generation, appointment setting, customer relationship management, and closing deals. 

Some companies outsource their entire sales teams, while others only outsource certain aspects of the sales process. Sales outsourcing agencies and providers can work on-site or remotely, depending on the agreement between sales outsourcing agency, the hiring party and the provider.

Generally speaking, the goal of outsourcing sales is to reduce costs and improve efficiency by leveraging the expertise and experience of an external provider. This approach allows many businesses to focus their sales efforts on their core competencies while outsourcing their non-core sales functions to third-party specialists.

Types of sales outsourcing

There are many different aspects of the sales process that businesses can choose to outsource depending on their business requirements and available funds. Here are some of the most common ones:

  1. Lead generation outsourcing — this involves hiring a special agency to generate leads for your business. 
  2. Appointment setting outsourcing — this can be useful for companies that have a large number of potential customers but lack the resources to consistently talk to, follow up with, and set up appointments with leads. 
  3. Inside sales outsourcing — hiring an agency to handle your sales operations can be particularly handy if you’re a small business that does not have the resources to maintain full-time sales teams.
  4. Field sales outsourcing — outsourcing field sales professionals can be a great option for companies that have a geographically dispersed customer base and need to have a physical presence in different regions. 
  5. Sales prospecting outsourcing — this type of outsourcing entails hiring a provider to find and engage with your target prospects in order to determine whether they can be moved through your sales funnel. 

 

How to hire an outsourced sales team

Hiring a sales staffing agency can be a great way to assist with hiring an outsourced sales team. Sales staffing agencies specialize in recruiting, screening, and selecting sales professionals for a variety of industries and companies. These agencies have access to a large network of sales professionals, and they can help you find the right sales talent to meet your needs.

When you work with a sales staffing agency, they typically start by learning more about your business and your specific sales needs. They will then use their expertise and network to identify and attract qualified candidates for your open sales positions. This can include everything from entry-level sales representatives to experienced sales managers.

The pros of outsourcing sales

sales team outsourcing - pros

Below we will discuss some of the most prominent advantages of outsourcing your sales team. 

Cost savings

Cost-effectiveness is one of the primary benefits of sales teams and outsourcing sales development. Outsourcing sales operations can be significantly less expensive than maintaining an in-house sales team, which can be a major factor for smaller businesses that may not have the funds to hire and consistently train their own sales staff.

Why is sales outsourcing so cost-effective? Well, when a business hires an external dedicated sales team, to manage their sales processes, the business typically pays a fixed fee for the services provided.

This fixed fee is often much lower than what it would cost to incur the ongoing costs associated with maintaining an internal sales team outsource themselves, including their salaries, bonuses, insurance, office space, equipment, and training.

Expertise and experience

Outsourcing your sales operations can give your business access to specialized expertise and experience that may not be available on an internal level. Third-party providers normally have a team of experienced sales professionals and even sales influencers who are trained in the latest sales techniques, tools, and technologies, all of which you get provided with for a set fee. 

Specialized sales agencies also often have a deep understanding of the markets that they serve, which can provide you the sales leader with insights into your customer behavior, industry trends, and buyer preferences. Insights like these can help you develop more effective sales strategies and improve your brand’s sales performance in the long run.

Apart from that, external sales intelligence providers also have access to the latest and most efficient sales technologies and tools, such as customer relationship management software, sales engagement platforms, and other automation tools that are used by sales reps to streamline sales processes and boost results across the board.

You wouldn’t have to think about researching and investing in these tools yourself, as the sales agency would have you covered.

Scalability and flexibility

sales team outsourcing scalability

With outsourcing, businesses gain the ability to appropriately scale their sales pipeline based on current needs. This ease of scalability can be particularly beneficial if you run a business that tends to experience fluctuations in demand (e.g. on a seasonal level).

If you were going through a sudden increase in product demand, you would be able to quickly and easily scale up your sales operations to meet this demand through your outsourced provider. Similarly, if demand decreases, you can simply scale the sales team back down to avoid paying unnecessary costs. This sort of flexibility can be challenging to achieve with an in-house sales team. 

Outsourcing sales with a trusted outsourced team can help you improve lead generation and generate qualified leads. Sales development reps with experience in lead generation services already have knowledge of how to improve the sales function, which is very useful especially for b2b sales.

More time for core business functions

Sales is a comprehensive, multifaceted process that requires a significant amount of resources in the form of time, money, and personnel. The advantage of outsourcing sales operations, therefore, is in the fact that it can free up your internal resources and sales department and allow you to focus on other areas of your business, such as product development, customer service or marketing.

If you feel that your business teams should be focusing more of their time and energy on other areas to drive agency revenue growth, and profitability, then an outsourced and sales development team could provide the much-needed leeway to drive other business functions.

The cons of sales outsourcing

sales team outsourcing cons

Of course, outsourcing any aspect of your work comes with its own set of disadvantages. We’ve listed some of the most salient issues related to sales outsourcing company below.

Communication issues

Effective communication is essential for ensuring that the entire sales process runs smoothly, whereas any miscommunication can lead to errors, delays, and misunderstandings. When sales operations are outsourced to a third-party service provider, communication can become more challenging, particularly if the other sales rep or agency is located in a different time zone or speaks a different language to your own.

Loss of control over sales process

When you do outsource sales or sales development reps, you are basically entrusting another company to represent your products or services. The risk here lies in the fact that the outsourcing provider or sales partner may have different approaches and methods for selling, which can result in a lack of control on your end over the process.

To put this into perspective, here are some of the main ways that you might feel out of control when working with an outsourced sales team:

  • Different selling approaches. The outsourcing provider may have different methods for selling, as well as views regarding how to best approach your audience. This might make you feel disconnected from the sales process, as if you don’t have a say in how your products are being sold — and monitoring the way the provider does things defeats the point of delegating your sales operations to them.
  • Lack of transparency. Outsourced sales may lead to a lack of transparency in how the process is being conducted. This can make it difficult for your business to monitor and evaluate the performance of the outsourcing provider, and it can be challenging to identify areas for improvement.
  • Difficulty in establishing consistency. If the outsourcing provider is using a different sales process than what you’re used to, it might be difficult to establish consistency across your sales channels. This can lead to confusion and inconsistencies in messaging with your audience, which can negatively impact the sales process.

Cultural differences

sales team outsourcing - cultural differences

When you choose to outsource your business’s sales operations, you may find yourself working with a provider that is located in a different country or region, where cultural norms and business practices may be different. These differences can create several challenges, such as:

  • Communication barriers — language barriers or differences in communication styles can make it challenging for both parties to understand each other. This can result in misunderstandings, delays, or even conflicts.
  • Different work ethics — cultural differences can also manifest in differences in work ethics, expectations around punctuality, and other practices that can impact the relationship between your business and the outsourcing provider. 

Risk of compromising brand image

Outsourcing sales and marketing teams can carry a significant risk of compromising a company’s brand image, particularly if the sales outsourcing services provider’s sales approach, messaging, or customer service practices do not align with the company’s general standards.

If the external agency’s sales team does not adhere to the same level of professionalism, customer care, or quality standards as the business, it can lead to a negative experience for customers. 

This can happen in a few different ways:

  • Inconsistent messaging: if the provider’s sales team does not use the same messaging or branding as the client company, it can create confusion or send mixed signals to the company’s customers. This can undermine the company’s credibility and make it harder for customers to understand what their offer is.
  • Poor customer service: if the external sales team fails to provide customer service that is up to standard, it can reflect poorly on the company’s brand. Customers may associate the negative experience with the company, even if the outsourcing provider is responsible.
  • Inappropriate behavior: in some cases, outsourcing providers may engage in inappropriate behavior, such as aggressive or deceptive sales tactics. If these tactics are associated with the client company, it can lead to significant reputational damage and loss of trust among customers.

How to decide if sales team outsourcing is right for your business

decide on the approach to scale your sales team

Now that you are aware of the most common pros and cons of sales team outsourcing, let’s explore the steps that you need to take before deciding whether this new market and practice in house team up is right for your business or not.

  1. Analyze your business needs: before paying for an external sales rep, you must assess your business’s strategic needs and sales goals. Consider factors such as your current sales volume, target market, growth plans, and available budget. Are you struggling to keep up with demand? Do you need to expand into new markets? Are you looking to reduce costs? Knowing the answers to these and related questions can help you determine whether outsourcing your sales team is a viable option.
  2. Consider the pros and cons: as outlined in the earlier sections, sales team outsourcing has its advantages and disadvantages. You should carefully consider these pros and cons in the context of your business. For example, if cost savings are a top priority, outsourcing your sales team may be an attractive solution. However, if maintaining control over your sales process is critical to your business, outsourcing may not be the best choice after all.
  3. Evaluate potential outsourcing partners: if you come to the conclusion that outsourcing your sales processes is the right move, the next step would be to find and screen potential outsourcing partners. To do this, look for providers that have experience in your industry, a proven track record of success, and a strong reputation for quality and professionalism. Ask for references, testimonials, and/or case studies to get a sense of their past performance. You may also want to consider factors such as geographic location, language proficiency, and cultural fit.
  4. Start with a pilot project: before fully outsourcing your sales team, a good idea would be to start with a pilot project to test the waters. A pilot project can help you assess the outsourcing provider’s performance, identify any issues or challenges, and decide whether outsourcing is a viable long-term strategy for your business — without any negative effects on your primary goals and operations. Be sure to establish clear objectives, metrics, and expectations for the pilot project, and communicate these to the outsourcing provider before getting started.

Expandi — the best alternative to sales team outsourcing

Expandi - the best alternative to sales team outsourcing

Luckily, committing to an external sales team is not the only way of reducing costs while streamlining and automating a big portion of your sales processes. Expandi is the safest  LinkedIn automation tool that revolutionizes outreach by helping you stay ahead of the game and get valuable results in a short amount of time. 

Rather than hiring a third-party sales agency, you can easily leverage Expandi’s smart, automated sequences to connect with your prospects via LinkedIn or email. With Expandi, you can even personalize your touchpoints and create creative, engaging messages that are sure to get a response.

 

Expandi offers:

  • LinkedIn lead generation and email outreach, making it easy to connect with target leads regardless of your email provider. 
  • Image and GIF personalization options can add a unique touch to your outreach and increase engagement rates. 
  • Smart sequences allow you to leverage personalization and omnichannel outreach to create different outcomes based on your lead’s behavior. 
  • You can also easily integrate Expandi with any workflow you want and get support from a dedicated team of experts.

Expandi is a great alternative to outsourcing a sales team because it provides many benefits without some of the drawbacks of outsourcing:

  1. Expandi is cost-effective because it utilizes automation and does not require hiring a full sales team, which can be expensive. 
  2. Expandi team has a huge experience in creating effective campaigns that target the right audience and generate high-quality leads. You can get access to specialized expertise and experience in the latest sales techniques, tools, and technologies
  3. Expandi is scalable and flexible, which is helpful for businesses that experience fluctuations in demand. 
  4. Expandi allows businesses to focus on their core functions by taking on the burden of lead generation. 
  5. Expandi provides detailed analytics and a general dashboard for each campaign, allowing users to track their progress and optimize their lead generation efforts. This level of transparency is helpful for businesses looking to improve their LinkedIn outreach results.
  6. Expandi helps internal teams scale lead generation while maintaining control over sensitive data.

Unlike outsourcing, there is no loss of control or transparency issues with Expandi, and there are no communication or cultural barriers to worry about.

Whether you’re a business owner, agency owner, recruiter, business developer, growth marketer, or startup founder, you can easily sign up for Expandi to take your outreach to the next level!

Conclusion

Ultimately, the decision to outsource your sales team depends on your current and long-term business needs, resources, and sales goals. But don’t worry: by carefully analyzing the arguments listed above, and evaluating potential outsourcing partners, you can make an informed decision that aligns sales outsourcing experts with your business objectives.

FAQ

  • Can you outsource a sales team?

Yes, you can outsource your sales team. Outsourcing your sales team involves hiring an external company to have sales development reps manage your sales operations.

  • Should you outsource your sales team?

Whether you should outsource your sales team or not depends on your business needs, goals, and resources. Weighing the advantages and disadvantages of outsourcing your sales activities can help you make an informed decision. If you are reaching out to a new market, for example, sales services can be useful for improving lead generation.

  • What is the purpose of sales outsourcing?

The purpose of a sales outsourcing company is to reduce costs, access expertise and experience, achieve scalability and flexibility, the sales cycle and help you shift your focus on core business functions. Outsourced sales reps already come with knowledge and experience, so you can get down to business right away.

  • What are outsourced sales and marketing services?

Sales outsourcing and marketing team outsourcing involves hiring an external company to manage your sales operations, which may include lead generation market research, inside sales, field sales, appointment setting, and other marketing services among others.

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