Benefits of Outsourcing Sales and Marketing Services
Benefits of Outsourcing Sales and Marketing Services
Over 90 percent Fortune 500 companies have outsourced at least one major business function (Forbes, October 1995)
Outsourcing is extremely beneficial in the function of Sales and Marketing Support Services. Businesses conventionally used internal department or contracted the services of a “full time” marketing agency. However, the use of strategic outsourced marketing & sales firm is gradually becoming the top choice of the business world. This is evident from a recent Harvard Business Review survey that showed that 52% of the business leaders are considering outsourcing their marketing & sales activities.
Outsourcing has been instrumental in evolving the landscape of work. Businesses are able to employ flexible work schedules and reach higher levels of collaboration while employees are enjoying a higher level of freedom in the way they work. As a result, the new contractual labor format is gaining extensive acceptance and the overall work environment is shifting towards a more transparent freelance based staffing structure.
It is a highly effective ephemeral situation based on the mode of staffing, which enables companies to select focused teams with specific skill sets for temporary projects. This means that businesses have access to the best people in the world and can work with them as if they are in the same room. This has resulted in a tremendous saving in terms of infrastructure costs for the businesses while they are leveraging the best of talents around the globe.
Outsourcing sales and marking support services has several benefits as listed below.
1) Cost Savings
The biggest advantage that you will get by outsourcing sales and marketing support services is cost savings. This means that you can get your work done at a much lower cost as you will only be paying for the services that you have employed and for the amount of time that you have used them.
This is completely opposite to the structure of an in house department or full service agency where you dedicate your resources regardless of the fact that you use them or not. Outsourcing will enable you to avoid paying for all the services by enabling you to pay for only those services that you need and for the amount of time that you use them for.
This will allow you to scale the marketing resources allocated to you in order to handle projects of various sizes and scopes. Furthermore, the outsourced firms generally negotiate a portion of their fees to be contingent on successful outcomes. This means that you will pay when their efforts have generated an increment in your profits.
2) Skilled Labor
One of the largest challenges faced by businesses today is finding skilled resources. Once this feat is managed, they have to invest a considerable amount of money to train the employees in order to inculcate in them the necessary skills required. This drains the amount of resources available to the company and can be a gamble as the return on investment is dependent on the performance of the trained worker.
This is especially crucial for departments like sales and marketing that are fundamental in providing sustainable profit growth to the company. The productivity of these two functions is highly dependent on a skilled team that can effectively plan and execute.
In this regard, an outsourcing firm is a Godsend as it provides companies access to highly skilled resources and that too, at significantly lower costs. Furthermore, it provides the added benefit of freeing the company from the hassle of managing the tasks directly.
They will have a planning team with extensive experience that will develop an effective sales & marketing strategy to specifically fit your needs. They will then provide you the necessary expertise to achieve your objectives all under one umbrella.
3) Right Strategy
It is extremely important for a company to have the right strategy in terms of sales and marketing. The right strategy helps you to determine the direction in which the company is going, how it intends to get there and lastly, it acts as a measure of success in implementation.
Unfortunately, many businesses either lack the necessary capabilities required or simply can’t afford the cost of employing and training employees. It can be extremely costly to train employees to provide the intellectual firepower required for delivering the strategic insights needed to create a sustainable strategy for growth.
Even though marketing agencies claim to offer this service, however they only specialize in a particular skill set and approach the problem with that particular perspective. This can result in an ineffective strategy that is not suited to the requirements of your businesses.
4) Proper Implementation
A plan is of little use without proper implementation and therefore it is extremely important for the company to have access to skilled and experienced practitioners that can cost-effectively deliver the desired results.
Outsource marketing companies human resources are highly skilled and have a vast and extensive experience of marketing. Businesses are able to tap into these skilled human resources and employ them as a dedicated team. This ensures the judiciously planned out strategy is implemented effectively and the desired results are achieved.
5) Distribution of risk
If you have outsourced your sales and marketing support services, this means that you have minimized your risk. There is a certain level of risk involved with having an in house department in terms of investments and resources required in the functioning of the department.
The minimizing of risk will enable you to effectively focus the effort of the company towards the other core activities in order to achieve operational efficiency.
6) Increased Productivity
Outsourcing sales and marketing support services will not only provide cost benefits but will also help you to improve the overall productivity of your business operations.
It will help you to streamline your business processes with respect to the most effective strategy. This will enable you to properly align your business goals with your strategy and hence, contribute to your bottom line by increasing your productivity and efficiency.
Outsourcing sales and marking support services can immensely benefit your business in various ways. It is consistent with the evolving landscape of work and businesses all over the world are using it to gain competitive edge over their competitors.
It is at the heart of today’s emerging culture that is focused towards a more transparent freelance-based staffing structure. This means that proactive businesses that are taking the initiative are gaining the key first mover advantage that will put them much far ahead in the race, when it will become the common standard.
By: InterConnecta Guest Blogger