Industries & Professions That Can Benefit From Sales Business Process Outsourcing

May 11, 2023
|By Gretel Digo

sales business process outsourcing

The U.S. Outsourced Sales Services Market is projected to witness a compound annual growth rate (CAGR) of 6.95% from 2023 to 2030, indicating a growing demand for sales business process outsourcing (BPO). Research and case studies consistently highlight the effectiveness of sales BPO in tackling diverse business challenges. Multiple industries and professions can reap substantial benefits by leveraging sales BPO. Some examples include:

Retail and Consumer Goods

 The retail and consumer goods industry has outsourced sales and marketing activities to external agencies for years, and the trend continues to this day. Drivers for outsourcing in the sector are pressured to reduce costs while improving internal capabilities, productivity and efficiency. Companies also outsource sales to ensure that products are always available in multiple sales channels.

Sales outsourcing partnerships in the consumer goods sector have proven successful for many firms. Sales agencies have the resources and expertise to boost product sales through focused retail activities and support while helping companies save money. Many companies in the U.S. have successfully achieved their sales goals through outsourced sales and have benefited from the investments they made in infrastructure, systems, and external sales forces.

Other benefits that retail and manufacturing companies gain from sales outsourcing are as follows:

Cost Savings

According to The Harvard Business Review, you can achieve cost reductions of around 10 to 30% by outsourcing non-core business processes. On a similar note, 57% of executives report that their main reason for outsourcing is cost reduction, typically through staff augmentation.

Expanded Market Coverage

The regional and local expertise of sales providers helps companies expand into new markets quickly and effectively. For example, it is easy to build and deploy a dedicated and knowledgeable inside sales team in an offshore location to generate high-quality leads.

Improved Management of Retail Shelves

Sales solutions vendors excel at providing more frequent retail coverage and more effective retail shelf management. Commonly outsourced retail services include sales planning, sell-through activities, promotion management, and retail support for individual stores.

Information Technology (IT) and Software

IT and software firms are increasingly working with third parties to grow their business and keep generating sales. Traditionally, IT companies outsource sales when they expand into a new territory or introduce a new product. Tech startups or companies that are ready to expand need to divert resources to their core activity, so they choose to outsource sales services to outside agencies. A small business may not have enough bandwidth to generate new leads while providing topnotch customer service, or a fledgling software company introducing a new product may lack the resources to hire a full-time sales force.

Like other industries, the IT sector outsources sales services mainly to reduce and control costs, improve focus, access world-class capabilities, divert resources to the core function, and share risk. As the market matures, tech companies are demanding more value from their outsourcing engagements. Some IT firms outsource sales and marketing to access highly-skilled sales talent, and not merely to reduce costs.

Sales outsourcing also helps IT companies become more agile and move at the speed of technological innovation. They can focus on improving their core product/service, while the outsourcing company develops and executes the right sales strategy. Companies benefit from the expertise of seasoned sales executives and senior sales staff that they would not have been able to afford otherwise.

Healthcare and Pharmaceutical

Companies in the healthcare industry are actively investing in technology and workforce upgrades. For instance, The ICD-10 coding system undergoes periodic updates and revisions. Software external consultants or coding experts can help healthcare organizations stay up to date with the periodic updates and revisions of the ICD-10. They can also provide medical software that can help medical care facilities streamline operations, enhance patient care, and improve efficiency.

Healthcare organizations also turn to outside experts for specialized outsourcing services such as EMR and turnkey sales. Vendors integrate technology with sales solutions to perform sales calls and reach out to the primary care facilities and private practices. Commonly outsourced services in this sector include inbound call centers, lead generation and qualification, appointment setting, telesales, inside sales, and field sales. Healthcare firms working with third party providers, especially providers located offshore, gain cost savings through low labor and operational costs.

On a similar toke, the pharmaceutical industry is facing similar challenges, and pharma companies are working with sales solutions providers to achieve sales goals. One popular solution is the integration of an external sales force into the company’s in-house sales department to fill key positions and provide complementary skills. This strategic outsourcing model allows pharma companies to decrease internal headcount and reduce fixed costs while expanding their market coverage. It also allows companies to scale up or down very quickly in response to unexpected events.

Banking and Finance

The banking, financial services, and insurance (BFSI) industry has been at the forefront of outsourcing sales services, both locally and offshore. For an extended period, banks and financial institutions have collaborated with service providers to establish global sales teams. Commonly outsourced sales functions in the industry include financial product sales, cross-selling and upselling, inbound and outbound telesales, and multichannel sales support services, which are effectively delegated to third-party providers both locally and offshore.

Partnerships with sales providers allow financial institutions to control costs by leveraging low-cost skilled labor in emerging economies. Other benefits of sales outsourcing in the BFSI industry are access to niche-specific sales/telesales expertise, faster expansion into new markets, and scalability. A Gallup Banking and Financial Services researcher reported that call centers that successfully increase sales and conversion are those that use customer-focused tactics.

Engineering and High-Tech

Engineering and high-tech companies face the challenge of effectively reaching executives and technical decision-makers to promote their products and services. One effective strategy utilized by outsourcing firms is to provide support to engineering companies’ sales teams through expert sales engineers who possess extensive technical knowledge of the product or service. This high-level support enables outsourced sales representatives to deliver compelling pitches and maximize the potential for successful conversions. By leveraging the expertise of sales engineers, engineering companies can enhance their sales efforts and achieve greater success in driving sales and increasing conversion rates.

Professional Sales

Physicians, Dentists and Healthcare Professionals

Sales outsourcing helps medical and healthcare professionals improve revenues by providing the services of highly-skilled sales reps and sales executives that know exactly how to connect with decision makers, generate quality leads, and speak to customers in a language that they can understand. Vendors also provide the necessary technology and infrastructure to develop and execute the right sales strategy for specific products and services.

Real Estate Agents

Sales solutions providers play a crucial role in the real estate industry by assisting real estate agents in accelerating the sales cycle and maximizing product sales prices. These providers offer a range of valuable services, including specialized inside and field sales representatives who have expertise in real estate. In addition to sales personnel, they also provide consultancy services and infrastructure support, enabling real estate professionals to optimize their sales processes and achieve better results.

Engineering and Technical Professionals

Engineering and technical professionals rely on specialized sales solutions and a high-performing sales team with deep industry knowledge. Sales outsourcing providers strategically involve engineers in executive or consultant roles to facilitate connections with leads and effectively advocate for their technical products or services. This approach ensures a tailored approach that addresses the unique requirements and challenges of the industry, enhancing the ability to make compelling cases and foster successful business engagements.

Accountants

 Private accountants and accounting firms can benefit from working with sales providers to expand their practice and enhance conversion rates using effective selling methods. Outsourced sales teams possess a deep understanding of potential clients’ businesses and can confidently engage with executives to influence decision-making processes. By leveraging the expertise of outsourced sales teams, private accountants and accounting firms can optimize their sales efforts and achieve better results in growing their business.

Sales Outsourcing Trends and Changes

The complexity and unpredictability of sales operations make it extremely difficult to predict with certainty what will happen. The main trend in global sales is the increasing pace and impact of unpredictability due to technology and other innovations. Rapid change is forcing organizations to look for long-term, growth oriented strategies on top of meeting sales goals. Sales outsourcing providers are stepping up to help businesses meet these challenges cost-effectively. They have expanded their capabilities to include technology solutions and sales strategy consulting.

Changing Sales and Telesales Techniques

In a market characterized by increasingly sophisticated and discerning buyers, the role of sales and telesales representatives has evolved significantly. To meet the expectations of well-informed customers, key sales and marketing vendors are actively training their outsourced sales teams to adopt a customer-centric approach. For instance, telesales reps, who traditionally employed simple strategies like cold calling for selling commodities, are now adapting their techniques to effectively sell differentiated products and engage high-level decision makers.

Moreover, certain outsourcing firms are expanding their talent pool by hiring not only executive-level sales professionals but also experts from various fields such as computer science, medicine, IT, and engineering to support both external and internal sales teams. This diversified skill set enables them to cater to the specific needs of their clients and navigate the evolving sales landscape successfully.

Social media and big data continue to be important trends in sales outsourcing. Businesses are increasingly leveraging social media platforms to enhance their sales efforts, but with a more sophisticated and data-driven approach. Many companies are partnering with third-party agencies to establish dedicated external social media teams that closely collaborate with their sales force. This collaboration aims to effectively engage with both existing and potential customers, leveraging the power of social media to drive sales and achieve business objectives. By combining the expertise of outsourced social media teams with their internal sales force, businesses can create a more comprehensive and impactful approach to customer engagement and sales generation.

Big data is another technology that is driving the transformation in sales. The availability of vast amounts of data, combined with advanced analytics tools, empowers sales teams to gain valuable insights, make data-driven decisions, and ultimately drive competitive advantage.

Customer Relationship Management (CRM) systems also plays a crucial role in driving sales by enhancing customer interactions, improving sales team productivity, and providing valuable insights.

Here are several ways in which CRM helps drive sales:

Centralized Customer Data: CRM platforms centralize customer information, including contact details, communication history, purchase history, and preferences. This comprehensive view enables sales teams to better understand customers and tailor their approach accordingly, leading to more effective sales conversations and higher conversion rates.

Sales Process Automation: CRM systems automate various sales processes, such as lead management, opportunity tracking, and pipeline management. Automation reduces administrative tasks, streamlines workflows, and allows sales representatives to focus more on building relationships and closing deals.

Improved Lead Management: CRM systems enable efficient lead management by capturing and organizing leads from various sources. Sales teams can prioritize leads, track their progress, and ensure timely follow-ups, leading to increased conversion rates and faster sales cycles.

To learn more about outsourcing, you can read our Top 8 Qualities of an Outsourcing Company in the Philippines article. We invite you to follow us on social media and to visit our website to learn more about our services.

About Us: Sourcefit is a widely recognized US-managed business process outsourcing company based in Manila, Philippines. We proudly serve over 100 clients with a workforce of more than 1,300 employees. Our global centers can serve multiple markets, and our staff is highly proficient in English, Spanish, French, and Portuguese. Whether you need a few or many employees, we can help you achieve your business goals and build high-quality offshore teams.

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