Every business has to deal with the cost of doing business – facilities, equipment, management, comp plans and benefits – to fulfill its core mission. However, it doesn’t always make sense to invest in overhead for a department that is off to one side of the organizational chart, especially when the department comes with major issues that create additional costs.
For telecom companies, sales is one of those side departments. By outsourcing sales to a telecom sales partner, however, you may be able to save as much as 50% compared to operating an in-house sales department.
Three significant issues come with hidden costs that make operating an in-house sales department expensive:
1. Lack Of Ownership
There’s often no obvious place to put an inside sales channel from an organizational standpoint. Wherever it’s placed when first created, an outreach sales team is often passed from one manager to another in subsequent corporate reorganizations.
Eventually, it becomes clear that no one wants to accept ownership, whether because the function doesn’t fit well with a particular manager’s responsibilities or simply because of the function’s lack of prestige.
However it happens, the outcome is the same: Improving results requires significant investments in management and training.
2. Too Much Employee Turnover
Hiring telecom sales reps comes with its challenges and can be especially difficult at larger companies, where people may take a job with little intention of staying for the long term.
Many reps are looking for the next rung of the ladder, which impacts your bottom line due to high turnover rates and the costs associated with constantly recruiting, vetting and training new employees. Additionally, many companies include costly incentives that can be ineffective, especially in an environment with an unavoidable baseline of turnover.
3. Ramp-Up Time
In addition to the costs of hiring and training, you’re paying full salary and benefits for employees who aren’t yet up to speed. Many companies report that they provide four to six weeks of initial training, which includes memorizing the company manual and learning the corporate culture.
During this time, new employees are not selling. This elongated training period is a typically unforeseen, unmeasured cost of production.
Avoiding These Indirect Costs
One simple way of avoiding these costs is turning the inside sales function over to an outsourced sales team, which can provide results just as good (if not better) at half the cost that you’re currently paying.
In addition to saving you money, an outsourced team also can give you peace of mind. The right telecom sales partner is able to provide additional services, such as industry insight, experience working with small and medium businesses, and ongoing training. These services often speed up your ROI significantly.
Ready to learn more about outsourced sales in the telecom industry?
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