why outsource
Jul 25, 2023
6 min
Philippe Pilath Senior Account Manager

The Pitfalls of Outsourced Sales Projects in the SaaS Industry

Avoid Common Mistakes When Outsourcing Sales

Sales outsourcing has become a trend in the SaaS industry. Primarily because it offers a way to save time and money on sales projects. Furthermore it alleviates businesses to expand their reach, improve sales performance and grow without straining their internal resources. However, despite the benefits, many companies that choose to outsource often face insuperable challenges, potentially leading to the project's failure. This can be a frustrating experience, especially since outsourcing is often seen as a more accessible alternative to investing into an in-house sales team. In this article, we will explore the most common pitfalls encountered in outsourced sales projects and why partnering with a specialized sales outsourcing company is crucial to avoid these pitfalls.

The Rising Demand for Outsourced Sales in the Software Industry 

First, What is Sales Outsourcing? 

Simply put, sales outsourcing involves hiring an external organization to manage all or parts of a company's sales functions. An outsourcing partner can accompany your internally involved teams alongside almost any stage of the sales cycle. This could include lead generation, deal closing, customer success, and more. It's an appealing strategy, particularly for businesses aiming to expand their sales horizons without stretching their investment into internal resources. As the SaaS industry is consequently growing, so is the demand for outsourced sales teams. Companies did realize that outsourcing can be a cost-effective way of managing sales projects. It can eliminate the necessity to invest into an entire team and allows one to benefit from someone else's expertise on the subject matter. Furthermore, with more data about prospects and customers available, it has become easier for outsourced sales teams to identify the right leads through effective lead-generation strategies.

Common Pitfalls in Outsourcing Sales Projects 

Despite its advantages, outsourcing can be risky if not done correctly. Below are some of the common pitfalls that can derail your project: 

Lack of Industry Knowledge

The success of any outsourced sales project heavily relies on the vendor's understanding of the client's industry, target market and sales approach. One reason why outsourcing in the SaaS industry sometimes fails is that companies hire vendors who lack an in-depth understanding of the industry and its demands. A lack of industry knowledge can result in the partner’s inability to create an adequate sales approach, and the right messaging, generate qualified leads, and close deals effectively. Therefore, working with a specialized sales outsourcing partner that commands a wealth of knowledge and experience in the SaaS industry is crucial. 

Lack of Communication

Communication is essential in any business relationship, and outsourced sales projects are no exception. In many cases, the client and vendor fail to maintain an open line of communication, leading to misunderstandings, false expectations and decreased trust. Failing to communicate the company's goals and expectations to the outsourcing partner can cause multi issues, such as a lack of alignment between sales & marketing strategies, waste of resources, and misdirected or even redundant efforts. To prevent such shortfalls, companies must engage with sales outsourcing partners that prioritize communication. It is inevitable to have a mutual understanding of the prospective setup to compose a sustainable strategy, whose success is heavily relying on a healthy working relationship with each other. 

Lack of Transparency

One of the risks of outsourcing sales projects is that companies can lose control over the project's outcome. This risk can lead to a lack of transparency, making it difficult for the client to keep track of progress or even measure success. If outsourced sales projects are poorly managed, clients can end up investing in a project not delivering the expected results, leading to frustration, disappointment and most of all negative return on investment (ROI). To prevent this, companies should work with a specialized sales outsourcing partner that can provide regular progress reports and transparency in each stage of the project, making ROI visible and achievable. 

Lack of Customization

Sales outsourcing vendors often utilize a one-size-fits-all approach to sales projects, which can be problematic in the SaaS industry. The SaaS industry is so versatile and has unique features as well as challenges that require a tailored approach. Without customization, companies may waste their time and resources trying to fit into a rigid sales process that fails to address their specific needs. Worst case, companies deplete and burn valuable prospect lists, by not having a specified approach to generate the best possible return. A specialized sales outsourcing company that prioritizes customization can provide bespoke solutions to meet the client's needs and demands, whilst thereby improving the chances of success.

The Importance of a Specialized Partner

These pitfalls highlight the importance of choosing a highly specialized partner for your outsourced sales needs.

Understanding the Software Industry

A partner who profoundly understands the software industry can design and implement effective sales strategies, in line with industry-specific sales cycles. Strong partners will know the landscape, the competitors, the latest trends, and the unique demands of your target audience. They will also be able to create messages that resonate with your prospects and close deals more efficiently.

Proven Sales Processes and Methodologies

Having a partner that has developed, tried and tested methods of successful sales execution is invaluable, as it ensures that the project will have higher chances of success. A specialized outsourcing company can provide a structure for success and ensure the entire sales process is managed effectively.  Thus, a company can leverage these methods to positively impact sustainable performance short-, mid- and long-term as well in-house as outsourced.

Relationship Management in Sales

Furthermore, an industry-focused partner understands the significance of managing relationships in sales. They know that sales in the software industry goes beyond mere transactions. It's about establishing long-term relationships with clients, demanding a particular set of skills and expertise. Establishing sustainable relationships is mutually vital to increase customer satisfaction, assure project success and build trust.

The Success of Highly Specialized Partners

When it comes to outsourced sales projects, the most successful ones are typically those managed by specialized partners. They bring a wealth of industry-specific knowledge and expertise to the table, ensuring that the sales strategies they implement align with the company's goals and the industry dynamics.

Overcoming Outsourcing Challenges

So, how can software companies overcome these challenges and make their outsourced sales projects a success?

Selecting the Right Partner

The first step is choosing a partner with proven expertise in the software industry. Do your due diligence, look at their track record, and check their familiarity with your specific niche within the software industry. Ensuring that your partner comprehends your objectives is essential to achieving successful outcomes.

Setting Clear Expectations

Secondly, be clear about your expectations right from the get-go. Establish specific, measurable, achievable, relevant and timely goals, whilst making sure your partner understands your company's values, strategy and objectives.

Regular and Open Communication

No matter how experienced and knowledgeable an outsourcing partner may be, communication is critical to ensure success. Make sure to have clear expectations and share as much information as possible about your company, products, target audience, market landscape, competitors, etc., with the chosen vendor. Foster a culture of regular and open communication with your outsourced sales partner. This will help bridge any potential gaps and ensure that everyone is on the same page.

Final words

Outsourcing sales projects can be an effective way to support business growth and reduce costs, particularly in the SaaS industry. However, companies must be aware of the potential pitfalls that come with outsourcing sales projects. The lack of industry knowledge, communication, accountability, and customization can sabotage sales projects, wasting time and money.

At Salescode, we overcome these challenges and improve our chances of success by working exclusively with SaaS businesses. We adopt a tailored approach to meet our client’s unique needs and help them stay ahead of the competition. Book a short meeting today with one of our experts and see how we can help!

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Philippe Pilath
Senior Account Manager

With more than 8 years of experience in Inside Sales, Philippe is responsible for building trusting relationships and developing client’s accounts. With an in-depth knowledge of the sales and outsourcing industry, he is the go-to professional to ramp up our client’s revenue and simply generate value for our clients.

Click here to connect with Philippe on LinkedIn.

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