To outsource or not to outsource? Part 1

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Outsourcing in our daily lives is on the increase, whether that be your HR, accounts or catering.

But what about sales?

As an outsourced sales & marketing consultancy you may think we’re biased but in this and next months article we’re sitting on the fence and putting forward the pros and cons.

It clearly won’t appeal to everyone and full outsourcing is extremely rare but we are seeing an increasing number of organisations who are going down the ‘co-sourced’ route. In fact if you think about your own business you may have outsourced your telesales operation so you are already on the co-sourcing journey.

How many organisations will go further than that? At Alius we’ve outsourced all non core services including HR, IT, finance and financial advice. This enables us to focus on what we do best with limited distractions.

This month we’ll focus on two of the common reasons to, or not to outsource aspects of your sales operation.

Control:

Con - Less Control over the Sales Process

The nature of outsourcing means that you'll inevitably have less control over how tasks are managed and carried out. But that doesn't mean you'll have no input. as it;s your business you'll still have responsibility & ownership of the sales & market stratagy and budget process. 

Pro - More time to focus on your core business objective

This is vital for most businesses and one of the main reasons why they look to outsource. It enables them to focus on the operation of the business knowing that parts of their sales process is in capable hands. The key though is to make sure that there are regular follow ups between management and your outsourced provider. 

Cost:

Con - It will cost more?

Not necessarily but there's no denying it will cost you money. As we've already said it won't suit every organsisation but as businesses are changing we are seeing it creeping more & more into their DNA. Get your outsourced provider to fix their day rate and give you a discountif you're buying recurring days. 

Pro - No need to spend on staff benefits, training, ect

The positive is that you won't need to recruit staff, pay recruitment consultants fees and then provide all the staff benefits, life & healthcare benefits, bonus, car allowance to name just few. This can often equate to another 25% of salary. 

To Conclude

I have often used an analogy that could save the recruitment costs and re-direct them to fund a contractor for that period, effectively try before you buy.  You would be surprised at the number of consultancy days it would buy.  Recruiters may not like the idea but it is a dog eat dog world.