Home 9 Outsourced Sales Teams 9 Outsourcing vs. Building Internal Sales Teams

Outsourcing vs. Building Internal Sales Teams

It's a no-brainer that modern businesses should strive to expand their sales teams. But deciding on the best way to do so can be challenging. Should you outsource sales or build an internal team? Both come with benefits and concerns. So, let's look at these to help determine the best fit for your business.

Savo Krajisnik

March 15, 2023
outsourcing vs. buidling

74% of companies claim that converting leads into clients is their primary focus. Thus, it’s evident that sales teams’ members are among their most crucial employees. They are responsible for finding and qualifying new leads and moving them further through the sales funnel.

After all, the primary purpose of running a company is to generate profit, so having the right people on board is critical to get results. It’s only natural to carefully consider how you’ll form your sales team. Will you keep it in-house or outsource some or all sales roles? 

Both approaches have pros and cons, which is why we’ll go over them in an attempt to help you make an informed decision.

Outsourcing sales teams

Outsourcing sales refers to delegating sales processes to external individuals or companies.

While you may outsource your entire sales process, many businesses prefer only to outsource specific sales team roles. For instance, you can outsource sales development representatives’ (SDRs) tasks, like securing high-quality appointments, so that other sales teams’ members can focus on closing the deals.

Companies outsource sales teams to gain various benefits but, just like everything else, this practice also comes with a few potential risks. 

Benefits of outsourcing sales teams

Quickly enter new markets

When trying to break into a new market, you’ll need new tactics and knowledge to execute the sales cycle successfully. An outsourced sales partner can bring experienced, highly-knowledgeable sales experts ready to do that.

Access top talent

Speaking of sales experts, outsourcing provides you with an infinite pool of talent with skill sets for success. It brings you team members experienced in dealing with ever-evolving market conditions and technologies.

Save resources

Outsourcing companies have already hired and trained sales staff, so you don’t have to invest additional time and money. Outsourcing also ensures that your sales process is handled with the most up-to-date technologies and practices at affordable rates.

Concerns about outsourcing sales teams

Loss of control

One of the most common concerns business owners have about outsourcing is losing control of the sales process. But here’s the thing: outsourcing agencies serve as an extension of your team. As such, you have complete decision-making power at all times.

Return on investment

Many businesses hesitate to invest in outsourcing due to uncertainty about getting the most value for their money. The easiest way to avoid this concern is to partner with professionals with a track record of success.

Potential communication issues

When outsourcing, you could have an office in the US but sales teams in Europe. In that case, you’ll need to establish core business hours and communication channels. So, if the location of your teams is a major concern for you, outsourcing might not be the best choice.

Building Internal Sales Teams

Building internal sales teams entails hiring, retaining, and training sales staff directly in your company.

It implies that internal stakeholders make all sales-related decisions. Therefore, besides employing people, building internal sales teams requires establishing selling processes and systems that support your end goals.

Let’s look at some of the benefits and drawbacks of this method.

Benefits of building internal sales teams

Train for success

Opting for an internal sales team allows you to train your staff to know your offer thoroughly. Eventually, if you manage to retain them, they’ll become brand advocates who can promote and sell your products or services with great precision and passion.

Complete accountability

Accountability is an essential factor in business — and having internal sales teams brings you full accountability. If you invest in the right software, you’ll be able to easily track teams’ progress and know results at all times. Naturally, you can do that too with outsourced teams but some people prefer to think that keeping tasks in house is more transparent. 

Whole sales teams “under one roof”

When all team members are “under one roof”, you’re the only one that impacts operations and ensures proper communication. But keep in mind that having everything and everybody in-house comes with its cons, too, as we’ll discuss below.

Concerns about building internal sales teams

Time-consuming process

Hard truth: recruiting and training processes are time-consuming. You will likely have to wait several months (or even years!) for new hires to start generating maximum results. So, although you can train them to be pros – it requires time and additional investments. 

Downsides of having everything “under one roof”

Internal sales teams require systems that support their success in all steps of the process. If your management doesn’t know how to develop and maintain effective sales systems, you risk wasting time and money without achieving goals.

Building and retaining internal sales teams is costly

With SDRs’ average annual salary of $57.707, it’s obvious that this method comes with a price. And that “price” is just for SDRs ― you’ll, of course, have to pay other sales personnel as well. Furthermore, prepare yourself to invest continuously in training for all team members and in the infrastructure the team needs to work. All of those costs add up, increasing the final price you’ll have to pay for an internal sales team. 

So, which is better?

Well, it depends.

How quickly do you need to form your sales teams and start achieving results? If the answer is “as soon as possible”, outsourcing companies can start setting appointments for you within a few days or weeks.

Also, if you’re just starting out, you may, at first, outsource sales teams. Then, once you’re on your feet, you can take your time to build an internal sales team.

The decision is entirely yours.

However, keep in mind that many businesses continue to outsource their sales even in later business phases. The reason is simple: it instantly brings expertise into your operations, allowing you to stay competitive and scale efficiently.

The key is to select the proper vendor that will collaborate with you to create sales strategies tailored to your brand and offer. That way, outsourcing brings all the benefits of building internal teams ― you get trained professionals, transparent communication and constant insights into your campaigns. All of this is without the additional costs of employment processes, training, and ever-changing technology.

Make the right decision

With so many businesses focusing on expanding their sales teams, ensure you don’t fall behind. Do your research and make a thoughtful decision. Hopefully, the benefits and drawbacks we discussed here will assist you in making the right decision for your business’ success.

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