Do you understand why over 50% of the
Fortune 1000 outsource lead development?
Driving quality opportunities to sales has never been more important for marketing. Effective inside sales / lead development programs continue to out produce all other forms of lead development. Many organizations have tried to staff up and build expertise in lead development but most struggle to deliver the quality or quantity of leads.
Companies often underestimate the
challenges of creating high performance demand generation
teams. Below is a list of some of the reasons companies
large and small elect to outsource lead development.
- To improve company focus. Outsourcing sets up a framework which
an outside expert assumes responsibility for operational details. That
leaves management free to focus on more important business issues related
to customer service and marketplace demand.
- To obtain world-class capabilities. Because of their specialization,
outsource providers bring an extensive skill set into the corporate environment.
Such leading edge technology and expertise helps companies better satisfy
customers and increase productivity.
- To accelerate reengineering benefits. Organizations
realize the benefits of re-engineering more quickly if they contract with
an outside organization that is itself already re-engineered to state-of-the-art
standards.
- To share risks. Outsourcing enables management to
turn over to its suppliers certain risks, such as demand variability and
capital investments. Unlike the buyer, the outsourcing provider can spread
those risks over multiple clients.
- To free up corporate resources. Outsourcing permits
an organization to redirect its resources from non-core activities to
ones that have the greatest impact on business performance.
- To make capital available. Contracting out certain
functions as operational expenses can reduce the competition for capital,
since the outsourcing entity provides the capital investment as part of
its overhead.
- To obtain a cash infusion. Outsourcing can involve
the sale of assets to the provider, typically as a combination of cash
and a loan.
- To control operating costs. Access to an outside provider’s lower
cost structure is one of the most compelling reasons for outsourcing.
- To obtain resources not available internally. Outsourcing
is often a viable option for companies experiencing rapid growth, expansion
into new geography or spin-offs from the parent company.
- To deal with management or control problems. Control
problems are often cited as the reason for outsourcing. However, the underlying
cause, such as unclear expectations or difficulty in measuring performance,
is often not solved by outsourcing.
Source: The Outsourcing Institute, 2004
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