Addressing False Stigmas of Outsourcing

Daniel Paul, Managing Director @ demandDrive

This is an excerpt from our larger piece, Outsource or Hire? The True Cost of your SDR Team.

Technology companies are familiar with the idea of outsourcing aspects of their business. There are many prominent Business Process Outsourcing (BPO) firms that provide both back office functions like HR, accounting, and finance, as well as front office functions like customer service. The benefits are well documented, as companies can leverage experts who have built businesses around these specific processes (and who can often provide them at lower costs), so they can focus on perfecting what makes their business great.

“You’re a technology company, not a sales development company.”

While the idea of outsourcing isn’t new, many companies are reluctant to use outsourced vendors in sales — particularly in sales development. There are many reasons for this, but, businesses may be overlooking a great opportunity.

Brand Representation

A sales development rep is often the first point of human interaction a prospect will have with your brand, and the importance of representing your brand the right way is paramount. For that reason, it’s understandable that companies may be a bit hesitant to trust a third party with such an important function.

That said, many of those same companies are comfortable enough working with creative marketing agencies or PR firms to help define and represent their brand. These agencies draw on decades of experience and are experts in the design and execution of your brand strategy. They also allow companies to leverage larger teams on an as needed basis, rather than carrying an abundant headcount in the creative department.

The same can be true with the right Sales Development partner. Experts in the Sales Dev space draw on years of experience building and managing teams in many different markets. As a result, guidance on how to represent your brand and the appropriate channels to do so comes from a deep pool of knowledge that might not exist internally.

Security & Control

Another reason a tech firm might think twice about outsourcing their SDR function is concern over security and an overall lack of control. Why would you give a third-party access to and control over sensitive client & prospect data? That sounds like a huge risk.

Companies are now so used to the SaaS model and its benefits that it’s difficult to imagine doing business prior. Imagine maintaining the infrastructure, software updates, and the giant IT closets filled with servers. So 1990.

The flexibility and scalability of the SaaS model far outweigh any perceived risks related to security. The same is true when working with a quality outsourced services provider. With a proper contract structure, the security risks of working with a third-party vendor will often be minimal compared to an in-house team.

Cost

When you hear of a company outsourcing a function like a call center or IT development, it usually conjures up two assumptions: it will cost less, and the quality will be lower than an in-house team. And that can be true — but with sales development, it’s a different story. With the right firm it will cost you less to outsource an SDR team than building it internally, and the quality can increase with the right training and experience. Companies often outsource to offshore developers with an obvious hit in quality. Why then, does a stigma exist surrounding Sales Dev, when it’s likely cost will decrease and quality will improve?

The above numbers represent the national salary and employment cost averages in the tech space for a team of 3 SDRs —Info gathered by infoAnalytica

It’s time to shed the stigma associated with sales development outsourcing and begin to realize the many benefits it provides.


Make sure to check out the demandDrive website and Contact Us to learn more about our services!

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