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 technology sector generally utilizes partners, either integrators or value-added resellers, to sell their products to end users. These partners either purchase directly from the manufacturer or go through a distributor. 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. Many companies also employ an inside sales organization to assist the territory sales representatives and work with channel partners. Some of these inside sales organization also do basic lead generation and lead development activities. However, most of the inside sales functions migrate into a support role instead of a selling role.

Utilizing this selling model of a typical company in the technology industry, 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 partners 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 technology companies in start-up or early growth stages, 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.