In-House or Outsourcing – Which is better for your company?

Are you very good at building things?

Carpenter building wooden deck

My neighbour is an electrician by trade, but he seems to be able to build anything.

He built this unbelievable, beautiful two-tier deck, on the back of his house. He poured the concrete fittings, sawed all of the wood for the deck, and put up this incredible railing, made from steel rods.

My neighbour is definitely a do it yourselfer (DIY), an in-house guy.

I’d say about 95% of people would hire a skilled carpenter to build them a deck. They would outsource it to a professional. How about you?

We personally outsource many jobs and tasks these days. Most people outsource; haircuts, commuting (subway, bus, cabs, car pools), baby sitting, deck building, as well many other tasks.

Why do we outsource these items? It’s because;

  • We’re too busy to do them ourselves,
  • We’re not very good at these tasks,
  • We can find experts to do it for us, because in the long run it’s cheaper, faster, and more effective to let experts do it for us.

Why Canada’s Big Banks now Outsource IT Projects

A friend of my Dad’s used to tell me stories about how his business worked, way back in the 1980’s. He sold for IBM, and had one of Canada’s big Banks as his client.

He sold to the IT divisions in that Bank, and they used to have two separate divisions in IT, where each division would do the same project, to see who could build it faster and better.

This demonstrates, of course, one of the biggest uses of in-house you will probably ever see.

Now, of course, almost all IT systems are bought from a specialized vendor, it’s outsourced.

Why reinvent the wheel, when another company already has done it, and usually perfected it, because of all the other clients they have.

So which is better for your company? In-house vs Outsourcing!

Well, it really depends on what service, or product production your company wants to outsource.

Another place where outsourcing has been used, with great success, is hiring third party sales people to bring in new business for a company. Other names for sales outsourcing include; indirect sales, channel sales, Value Added Resellers (VAR’s), manufacturers’ reps and telephone-based lead generation and appointment setting, etc.

This type of outsourcing can be very useful for all kinds of businesses.

But please don’t confuse this with telemarketing. Telemarketing is used for consumer sales and is not used for B2B sales. WHY?

Because telemarketers will try and sell you something as soon as you pick up the phone. This is not sales outsourcing.

So, where else is B2B sales outsourcing used?

B2B Sales Outsourcing

B2B sales outsourcing is used to initially make your potential clients aware of your products/services, to qualify the lead, and usually to set up a time for a further appointment, or call, to discuss the various options, to see if your company is a good fit for their products and/or services.

And, as you know, one of the most difficult tasks, in B2B sales, is getting that initial appointment with a Vice-President or ‘C’ level executive.

If your company is like most B2B companies, your sales people are probably the ones who have to make that call, to set up the appointment with that executive.

And if your sales people are like most B2B sales people, they probably hate making those calls.

They usually hate making them for many reasons.

  • Most executives are in meetings most of the day, and are unavailable,
  • Most executives, these days, don’t answer their own phones, an executive assistant usually does, and you better have a good rapport with this EA, or you won’t get put through,
  • Direct phone calls usually go straight to voicemail, and very few return those calls, unless they know you,
  • Most sales people struggle with the idea of leaving a voice message, and what should be in it,
  • B2B sales people have many other duties and responsibilities, over and above setting appointments, and usually can’t fit in enough time during the day for them,
  • B2B sales people, in general, are not given the right training to make these calls, and consequently do not like making these calls.

What is best for your organization, when it comes to sales? In-house or outsourcing?

Cropped closeup photo of clever smart professional polite secretary in grey formal suit is calling to her boss, she is sitting at the table in office

Let’s delve further into some of the pros and cons of each of these alternatives.

Most people will outsource large projects for many reasons including;

  1. They don’t have the skills in-house.
  2. It takes too long to train people to do the job well. On-boarding, for sales people, can take anywhere from three to twelve months, depending on the complexity of your products/services.
  3. There is usually a deadline, and outsourced professionals will do a better and faster job.
  4. A professional company has decided that outsourcing is their business, and they are specialists, and have done hundreds, or even thousands of these jobs, and therefore know how to do it best.
  5. Even if you have good sales people, most companies will then ask these people to do other jobs also, which takes their focus away from selling.

As an example, in-house appointment setting (or lead generation), using your own sales people, can cost your company up to 4 times the cost of having a professional outsourced company do it for you.

And turnover is usually a big factor for companies that have their in-house sales people do appointment setting. Turnover, of course, can set you back months, or even years, to get up to the same speed again.

So, what will it be for your company? Going through all of the hassles of hiring sales appointment setters, doing it in-house, or letting a professional firm do it for you.

Your best option can be to outsource this function to professionals.

Save yourself and your company this hassle. Get more qualified appointments, faster.

Give us a call, or send us an email, and we will get back to you ASAP, to discuss your needs.

There is no charge for this, and most companies learn a lot, just by talking to us.

Thanks. We look forward to serving you.

Our contact information is;
Phone: 416-410-2222

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