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Attention businesses! Are you looking for ways to reduce costs in your outbound sales strategy? Outsourcing your Sales Development Representatives (SDRs) might be the solution you need.
In recent years, outsourcing SDR has become increasingly popular among businesses. It is mainly due to it leading to a drastic reduction in costs.
This can be attributed to lower labor charges, enhanced efficiency, and the ability to acquire unique skill sets – while averting costs related to tools and equipment.
Imagine having a team of experts working to generate leads, schedule appointments, and handle other essential sales tasks, all while saving you money.
That's exactly what outsourcing SDR can do for you. This trend is growing, with 59% of companies using SDR as a service to save costs.
In fact, according to a survey conducted by SalesHacker, businesses that outsource SDR have reported an average cost reduction of 25-30%.
Not only do contract SDRs minimize costs, but they are also the future of outbound sales. The shift will greatly impact the sales industry, improving efficiency and increasing revenue for businesses that adopt it.
So, what are you waiting for? Let’s see how you can embrace the future of outbound sales and start reaping the benefits of outsourcing SDR today.
What Is SDR Outsourcing?
What exactly is outsourcing SDR and how does it work? Outsourcing SDR refers to the practice of hiring a third-party team to handle the sales development process, including generating high-quality leads, scheduling appointments, and other critical tasks.
The teams in SDR outsourcing companies work remotely, using technology and specialized skills to support your sales efforts.
The benefits of outsourced SDR services are numerous. Not only does it cut down labor fees, but it also boosts productivity, facilitates access to expertise, and helps to avert expensive investments in infra and tech.
Minimizing Costs Through Outsourcing SDR
By outsourcing SDR, you can enjoy a range of cost savings and benefits that can improve your sales efforts and drive your business forward.
1. Lowered Employee Costs
By outsourcing SDR, you can reduce employee costs by eliminating the need for in-house sales development staff and associated expenses such as salaries, benefits, and training.
Contract-based SDR teams are often based in countries where labor costs are lower, further reducing costs for your business.
2. Improved Efficiency and Productivity
An SDR team is typically highly trained and experienced, allowing them to handle sales tasks more efficiently and effectively.
This can increase productivity, allowing your business to generate more leads and close more sales.
3. Access to Specialized Skills
Outsourced SDR teams bring a wealth of specialized skills and expertise to the table, including advanced technology and data analysis tools.
These capabilities can help to improve effectiveness and outcomes further, leading to increased sales and cost savings.
4. Avoiding Infrastructure and Technology Costs
Outsourced SDR eliminates the need for costly investments in tools and infrastructure, as the contract team will use their own resources to support your sales efforts. This can save your business significant amounts of money in tech and architecture costs.
How Much Does it Cost to Outsource SDR?
Calculating the costs of outsourcing SDR can be a complex task, as there are many factors to consider. However, by breaking down the costs into different components, you can better understand what you can expect to spend.
1. Employee Costs
The primary cost of outsourcing SDR is labor. This includes the hourly rate of the outsourced team multiplied by the number of hours they will work for you.
The hourly rate for outsourced SDR teams varies depending on the location and experience of the team, but on average, it ranges from $15 to $30 per hour.
2. Technology and Infrastructure Costs
Some outsourcing providers may charge additional fees for technology and infrastructure costs, such as the cost of setting up the SDR team with the necessary tools and equipment.
3. Management and Supervision Cost
If you choose to manage the outsourced SDR team, there will be additional costs associated with supervising the team and managing their progress. If you choose to outsource management, this cost will be included in the labor costs.
4. Overhead Costs
Overhead costs, such as rent, utilities, and insurance, will also be a factor to consider when calculating the costs of outsourcing SDR. These costs can vary depending on the location and size of the outsourcing provider.
5. Other Costs
Other costs include training, travel, and miscellaneous expenses, such as office supplies, software, and telephone costs.
Here is a sample template for calculating the costs of outsourcing SDR:
| Component | Cost (in $) |
| Labor Costs | Hourly rate of the outsourced team * number of hours worked |
| Technology and Infrastructure Costs | Varies depending on outsourcing provider |
| Management and Supervision Costs | Varies depending on whether the management is outsourced or in-house |
| Overhead Costs | Rent, utilities, insurance, etc. |
| Other Costs | Training, travel, office supplies, software, telephone costs, etc. |
| Total Cost | Sum of all the above components |
This template provides a basic outline for calculating the costs of outsourcing SDR.
It's important to note that these costs can vary greatly depending on a number of factors, including the location and experience of the outsourced team, the complexity of the technology required, and the size of the outsourcing provider.
Is Outsourcing SDR Cheaper Than Internal Hiring?
Comparing internal staffing to outsourcing from an external vendor can be challenging because there are many factors to consider. Initially, having in-house sales representatives may appear to be a safer and more affordable choice.
However, in reality, it can end up being much more expensive and result in numerous challenges. Hiring an internal sales representative can cost as much as $110,000.
By utilizing outsourcing providers such as Revnew, you can reduce costs and significantly decrease ramp time by up to 50%, leading to a maximum return on investment.
Is Outsourced SDR the Future of Outbound Sales?
As technology advances and businesses continue to focus on efficiency and cost-effectiveness, outsourcing SDR is expected to become even more popular.
By using SDR as a service, your business can access a wider pool of talent, increase its operational efficiency, and remain competitive in an ever-changing market.
The trend of outsourcing SDR is on the rise, with more and more companies realizing the benefits of working with external vendors.
This increased adoption can be attributed to outsourcing SDR's many advantages, such as decreased costs, increased expertise, and enhanced effectiveness.
Outsourcing SDR significantly impacts outbound sales, enabling businesses to reach a wider audience and increase their conversion rates.
By deploying SDR as a service, your organization can focus on its core competencies while relying on experts to handle the sales function. This leads to a more efficient sales process, ultimately driving better results.
Final Thoughts
If you are considering outsourcing SDR, it is important to carefully evaluate your needs and select a vendor like Revnew with the right skills and expertise.
Establishing clear goals and objectives and having open and transparent communication with the outsourcing provider is also important.
By taking these steps, you can ensure that you maximize the benefits of outsourcing SDR and drive better results.
For more information, you can reach out to our experts at Revnew.
