There are several financial benefits associated with sales outsourcing:
Sales Rep’s salaries are the first thing that people talk about when discussing cutting direct costs. However, the expenses on managerial work necessary for building and running your own team are even greater.
Sales outsourcing teams reduce them by picking favorable locations with lower wages. One more way to reduce expenses is to assign several sales project to one manager. Finally, because they have large sales teams, it allows the creation of hierarchical structures with junior and senior reps and build a sales cycle that enables to manage and control work more efficiently and easily.
Location gives a possibility to significantly reduce rent costs, hardware, and office support. In a world gone virtual many companies are stuck with high lease options or property costs. Offsetting this with outsourcing is a huge savings. Finding an outsourcer who is fully virtual can mean even more savings and better talent.
The average ramp time of a sales development rep is 3-6 months and the tenure is less than 2 years. Internally SDRs are rapidly promoted to AE positions, if they are good. This leaves internal SDR teams struggling for tenure and experience which directly impacts performance. Outsourcing Sales Dev allows for maximum tenure, experience and superior performance.
Meanwhile the average onboarding period for outsourced sales companies is 2 weeks to one month (depending on the scope of work, the complexity of product, etc.)
The providers of sales managed services have up-to-date software. They cut costs by purchasing subscriptions in bulk (for large teams) or sharing one account between multiple reps. This enables a reduction in costs for company, support expertise and that turns into a lower cost per sales person on the overall P&L. Big win for the Sales Prevention Department (accounting).