When sales is the Business Process

Can outsourcing of the sales function work? There are obviously a number of factors that will determine the answer to that for your particular business. However, right now over 11% of Business-to-Business sales are conducted through manufacturer’s agents – a figure that is rising rapidly with a growing acceptance of the outsourcing function. Each industry has a different sales model, but every industry can outsource some or all parts of the sales function and still be very successful.

The medical sector sometimes utilizes partners, either distributors or independent sales agents, to sell their products to health care providers. This model generally involves two sales organizations as it matures, one to manage the channel and one to work with the end users in a ‘direct touch’ fashion. Some companies also employ an inside sales organization to assist the territory sales representatives and work with channel partners. Some of these inside sales organizations also do basic lead generation and lead development activities. However, in most corporate environments of the inside sales functions migrates into a support role instead of a selling role.

In this go-to-market model the inside sales and channel sales functions can be evaluated for outsourcing. Outsourcing the Inside Sales function should result in a more prolific lead generation and lead development model, leading to incremental revenue. Channel Sales can be outsourced to manage the distributors, manufacturer’s representatives and channel programs more effectively and efficiently. Additionally, Direct Sales can be outsourced if the customer base is segmented according to size, industry, after-market sales or product. For life sciences companies that have yet to incorporate inside sales and/or channel sales into their go-to-market strategy, outsourcing of these functions at the outset should be considered for maximum growth in the most efficient and timely manner.

In order to be successful, the outsourcing company needs to have expertise, industry knowledge and people with a winning track record. You should not settle for anything less than a pay-for-performance model of sales outsourcing. Goals and measurements need to be implemented early, conforming to a mutually agreeable Program Design.