SDR Outsourcing: 3 Reasons B2B Tech Companies Love It

The world of B2B tech is dominated by the pursuit of growth and efficiency. So it’s no surprise that outsourcing all or parts of the sales function is one of the leading trends that’s changing the way sales is done.

When you zero in on SDR outsourcing specifically (leveraging sales development representatives from a third party), there are three major reasons B2B tech can reap substantial rewards.

1. It Can Save Time and Money

When you’re looking to scale quickly, a long employee onboarding process can delay your go-to-market or growth strategy — and your time to revenue.

Here’s just one example of why this is the case: For the average SDR, it takes several months to start producing regular results. If the same rep has a short tenure, the time they spend at full productivity may not be worth the hiring investment. Situations like this mean you could be incurring continuous recruitment costs and ramp-up time to replace internal reps.

Hiring an experienced outsourced SDR team, on the other hand, results in large improvements and additional flexibility in this area. The best outsourced teams are always fully staffed with experienced, career SDRs working on your project. That’s because hiring and training are both managed behind the scenes by the vendor – who typically has extensive hiring experience and recruitment pipelines.

Outsourced teams don’t always look like the better financial option on the surface. However, if you factor in all of the costs associated with maintaining an internal sales team — including tooling, benefits, vacation, etc. — the savings become clear. Plus, outsourced teams are typically incentivized by their parent company, so you avoid the nuances of paying bonuses and commissions too.

Once you consider the actual expenditures and the costs of waiting for internal reps to ramp up and begin contributing to your sales pipeline, the total financial differences are often quite significant. 

2. It Reduces Risk

There is often a lot of risk involved in scaling a business. For example, when looking to grow, a company might be interested in entering a new market. The problem is, there is a certain amount of uncertainty involved in its exploration and validation.

At this stage, many companies are yet to dial in their sales approach. And, even if they have, the results they get aren’t necessarily guaranteed. One of the biggest perks of an outsourced sales team is that you can choose from a number of different external sales approaches to best meet your business objectives.

With a pay-for-performance approach, for example, the name of the game is lead velocity, while dedicated resources focus more intently on the quality of your appointments. This kind of flexibility and choice is key to managing your risk. With the right outsourced sales approach, you can throttle up or down, change direction quickly, or try more than one initiative at a time — essentially do whatever it takes to meet your goals.

The best part? You get all of this without the significant long-term expense of hiring a team of employees who may or may not deliver the results you seek.

3. It Focuses Expertise

This might seem a little counterintuitive at first, but in general, the more complex your solution, the more it makes sense to outsource. Why? Outsourced SDR teams can focus on a single persona, product, or opportunity all day, every day. This makes them easier to train, and better at explaining your value to prospective clients in high-pressure sales conversations.

As a bonus, outsourced SDRs are great at focusing on the customer. The best teams develop a cadence for nurturing leads to a sales conversation. They dial in their touchpoints, exploit preferred communication channels, and generally reach out to your customer base when and where they are most open to a conversation.

Plus, with such a niche focus, outsources sales teams can provide feedback that allows you to tailor your product updates to the most encountered customer pain points and give your internal sales team the account-specific details they need to quickly close a sale.

From lead generation, research, and qualification to appointment setting and follow-up, SDR outsourcing will not only keep your pipeline full, but it will free up your internal sales team to focus on what they do best — closing the sale. Companies that outsource this part of their sales strategy typically see significant pipeline growth and better-quality leads compared to what their internal team can provide.

What Can SDR Outsourcing Do for Your Tech Company?

With skills tailored for prospecting and teams built to ramp up quickly, outsourcing sales development is giving tech companies the resources, knowledge, and flexibility they need to:

• Increase their speed to market
• Tailor their product to their markets’ needs
• Pivot their sales approach
• Build a quality brand reputation
• Affordably meet their business objectives

Want to learn more about how it works? Take a look at how Inside Sales Solutions has helped this industry-leading cybersecurity software company generate more sales opportunities — even in the midst of a global pandemic.