5 reasons why companies consider outsourced SDR services

Sven Lens
4 min read
28 Oct

Sales Development Representatives are hot. In 10 years, this role evolved from ‘nice to have’ to a ‘must have’ in many B2B organizations and across industries. It’s the perfect bridge between marketing & sales and has a pivotal role to play in the acceleration of your pipeline.

Besides good reasons to in-source this profile, there are also a big number of reasons why companies consider relying on outsourced SDR services. Of course, this is not just another interim assignment that you onboard to only address a temporary capacity gap in your sales process. When considering the services of SDR resources that participated in an extensive training program and are constantly monitored/guided by senior experts, you will get much more value for your investment.

Here are 5 reasons that have an immediate impact on your business value and should trigger your thinking process.

#1 – FAST ONBOARDING IN DAYS, NOT MONTHS

The majority of B2B organizations are searching for a good SDR profile.  But as you know, we are in the midst of a war for talent meaning that the employee is in the driving seat.  They are very selective, come with a package in mind and have the freedom of choice.

On average, it takes 6.2 months to fill an open SDR position. This varies per company based on the renumeration package, company car, company culture, products/services portfolio, etc. In other words, for some companies it takes even more than 10 months to source the right candidate.

That explains why companies need to work around and rely on expert outsourced SDR capabilities. These people are true experts in their role and know what their job looks like, what’s expected and how to deliver a perfect client experience. A few days after the initial request, the onboarding can start and your SDR is ready to go. All this while the search for a permanent employee continues.

#2 – AVOID MISSING YOUR TARGET

When you drafted your business plan and set your target at the beginning of the year, you also calculated the required sales capacity.  If it turns out – throughout the year – that you are facing a capacity drop, it will have an impact on your sales target.  Agreed, you can potentially ask your sales team temporarily to work a bit harder, but this is not structural solution.

Let’s not underestimate the importance of this SDR role bridging marketing & sales.  The SDR who is qualifying the marketing generated leads and prioritizing the work of your sales team, is having a pivotal role in your sales process.  Having an experienced and dedicated SDR in place works is a true accelerator of your growth strategy.

So in the end, what do you prefer? Missing your sales target (and compensation!!) or a well-oiled sales machine?

#3 – LEVERAGE YOUR EXISTING SALES TEAM

Adding a skilled SDR profile to your sales team – or even a full sales development representatives team – will enable you to deploy a stimulating culture in your team. When attracting an external SDR resource, the existing team will view this person as a true expert from whom they can learn. Especially their proven expertise in various companies and industries helps the outsourced SDR to shine some new and fresh light on the current sales processes. At the same time, your sales team will be open to listen to their sales skills.  For sure, the product and industry knowledge of the existing team is priceless. If you can complement this with key tips and tricks on how to deliver a good phone pitch, build good prospecting files or convince a hesitating contact, you win twice.

#4 – COST EFFICIENCY IN THE LONG RUN

When any sales rep leaves your company, it cost between 150 and 200% of the sales rep’s cost to replace that person.  This is due to the long recruiting process, intense onboarding with adoption of new skills, products/services, … and the time it takes for the new salesperson to win a first deal.  

Building capabilities internally is a large investment. A fully loaded SDR covering salaries, technology, training, etc. will likely exceed €130,000 per resource plus ramp time. The majority of sales leaders don’t see the hidden costs linked to deploying internal capabilities. By working with an external SDR, it is much more efficient and it generates more cash flow for your business.

By the way, did you know that the average tenure of a SDR is 18 months? This is an industry standard and validated by independent The Bridget Group research.

#5 – HALF TIME NEED = HALF TIME COST

Some organizations might be too small to invest in a full time SDR resource.  When you look at the entire sales process, the SDR who is doing lead qualification work can only book a specific number of meetings or deliver a specific number of Sales Qualified Leads depending on the account executive/manager’s availability. A normal ratio is 1 full-time SDR for 2.6 full-time account managers, but it depends on your business.

Having said this, some organizations are perfectly serviced if they have a SDR on their team for only 1 or 2 days/week.  Complemented with the skilled expertise that comes along with the SDR, it is a big win for your company at an affordable price.  

In any case, you need to make the business case and showcase the ROI.  With a good indication on conversion rates – based on our experience in various industries – we can help to illustrate how big the impact on your business will be. Need advice on how to calculate the business case?