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Some companies see outsourcing sales as a way to move products while staying focused on product development

To beat the competition, businesses today need a sales force that understands company goals and values and penetrates the market aggressively with a clear, focused strategic plan.

Until recently, there has been a misconception that such a sales force could only be developed and managed within the organization. While many companies have embraced outsourcing for their financial and information technology needs, few have considered outsourcing sales.

But trends are changing. According to research from the Dun & Bradstreet, sales and marketing is now the third most active area for outsourcing after finance and IT. According to published reports by Dun & Bradstreet, outsourcing of field sales is expected to rise fivefold over the next two years.

Sitech Inc., a Stockton, N.J., company that develops and sells database publishing systems, began outsourcing its field sales last year. Sitech did so by contracting with Raymond Karsan Associates of Wayne, Pa., which offers a suite of sales outsourcing services called Sales Force Solutions (SFS) and specializes in field sales.

The array of services, customized for each client company, includes defining the company’s sales strategy, recruiting a talented sales force, providing them with automation tools, managing their productivity and even putting them on the SFS payroll, according to Elliot Clark, principal at Raymond Karsan.

Sitech President David Fisher says his company needed a sales force to market a new product, iPublishing Systems, which he describes as the first Internet-based, enterprise-wide, totally integrated publishing system.

"The key to our success as defined in our business plan is to establish a brand identity through sales and marketing," Fisher explains. "Sales is not my area of expertise. Our challenge – which everyone said was impossible – was to hire and develop a sales force in nine months. Through Sales Force Solutions, we can achieve this in three months."

Raymond Karsan is currently implementing Sales Force Solutions in two dozen offices throughout the U.S., Europe and Asia.

"Sales Force Solutions is the only full-service sales outsourcing service," says Scott Schultz, its managing director. "We maximize the sales force resources of our clients through the acquisition, development, engagement and retention of sales professions." Raymond Karsan refers this continuum at the Talent Life Cycle.

The concept of outsourcing sales is not entirely new. "Businesses who use manufacturer representative organizations have been ‘outsourcing’ their sales forces for years," Schultz points out.

But outsourcing has gained popularity in the era of corporate downsizing because it allows a business to focus on its core competencies. With sales outsourcing, the company can focus on making its product better rather than worry about how to get the product on the street.

Some companies mistakenly believe that outsourcing sales is more expensive than developing a sales force from within. But "outsourcing sales can save clients substantial amounts of money compared to the cost of in-house sales force development – and provide a higher level of productivity," Schultz says.

As most companies would, Sitech Inc. took both cost and control issues into consideration.

"At the time I was approached by Raymond Karsan Assoociates, I was advertising for manufacturer’s agents," Fisher says. "I had done a lot of research in the area of sales and was not aware of any outsourced sales services available. When I heard what they had to offer, I knew this was the answer to my needs."