Outsourcing Telemarketing: Why It’s Better for SMEs

When it comes to nurturing customer connections, would outsourcing telemarketing services be better than hiring an in-house team?

Telemarketing is crucial for expanding your business reach and enhancing your bottom line. However, with other business objectives like targeting business growth, increasing profit margins, and optimising resources, customer connection can easily become last on your list.

This is where a telemarketing team comes in, but what type of operations should you choose?

Telemarketing agents typically earn $4,000 per month, exclusive of commissions. For a telemarketing team to be effective, you have to hire, at minimum, 7 to 12 agents. This rounds up your wage cost to $48,000 for one team, still exclusive of recruitment and training costs.

Compare this to outsourcing telemarketing agents. On average, an outsourced agent costs around $900, bringing the total to $10,800 per month for a full team. That’s a monthly savings of $37,200 compared to hiring in-house. These cost savings are largely due to lower Philippines wages, making it a practical option for businesses looking to manage expenses more effectively.

Outsourcing gives you a competitive advantage, but is it the right fit for your business? Outsourcing work to the Philippines is a common choice for companies looking to reduce costs while maintaining quality.

When it comes to building the right team, choosing the right people and competencies aren’t the only factors to consider. Especially when you’re just starting out, the right team will also mean cost-effectiveness, long-term stability, and efficiency.

Some businesses have their in-house teams to develop and collaborate with. Others have an outsourced team that’s flexible and scalable in terms of skills and numbers.

As a business, you have the choice to outsource or develop your team, each having its respective advantages and challenges. Over 37% of businesses now outsource their telemarketing services. This number may highlight that more companies still choose an in-house team, but it doesn’t discredit the growing fraction of those developing an appetite to outsource.

If you’re still unsure whether to outsource or develop an in-house telemarketing team, here’s what you can expect when choosing either.

An in-house telemarketing team means your agents work directly for you on a full-time basis. This gives you the freedom of control and to integrate them into your company’s processes and long-term strategy.

Since they’re directly employed, in-house telemarketing teams can be monitored in real-time and issues can be addressed promptly. For an SME, this is especially important as it gives you full control over shaping and polishing your processes.

Having a team that’s working directly with you provides faster communication, which includes more effective decision-making, problem resolution, and workflow coordination. This helps eliminate delays that may hinder operational efficiency.

With an in-house telemarketing team, your team takes care of the sourcing, interviewing, and training, which can delay any project. As a starting business, you may want to scale or fill specialised roles quicker, which can be difficult with having to find telemarketing agents.

Outsourcing telemarketing teams means working with a specialised agency to hire the agents for you. It enables your business to tap into a broader pool of professionals and potential with niche expertise.

With outsourcing telemarketing teams, you get to enjoy the benefits of the service without the commitment. This is beneficial for businesses that are looking to scale without the burden of long-term financial obligations.

Outsourced teams specialise and are experienced in their respective fields. Hence, with outsourced telemarketing teams, you can enjoy more efficient telemarketing services. You get to focus on your core operations while the external team handles this specific function.

Working with a third-party agency to hire your telemarketing team may lead to disparate quality standards. What you require from your team may not necessarily be what will be provided, which may impact not only your operations but also your reputation.

There’s no right answer when it comes to choosing between an in-house and an outsourced team. The decision primarily depends on your business objectives, industry, and budget.

If your business involves handling highly sensitive information that may require strict supervision, it may be more beneficial to invest in developing an in-house team.

However, if you’re working with non-sensitive information and a part of your objectives is rapid business scaling while managing your budget, an outsourced telemarketing team will do just fine for your operations.

As an SME, making use of outsourced telemarketing services means you can save on costs, hire an expert team, and focus on core business functions, among others. These are the same reasons why 57% of companies outsource their non-core operations to BPOs.

So, what are the key advantages of outsourced telemarketing?

You eliminate the costs of hiring, training, and other overhead expenses by as much as 70%. You also don’t have to worry about compliance with labour laws and regulations. The BPO company will handle it all for you, all at an affordable and flexible rate.

Your outsourced telemarketing team already has the skills and experience to handle all kinds of calls and customers, leading to a 10% increase in customer satisfaction. That alone assures you that they will be able to create a positive customer experience and deliver your brand’s voice and messaging across correctly. 

With an improved service quality, an enhanced business reputation follows. The personal touch your outsourced team gives to customers bridges your relationship with them. As a result, you’re able to build a credible and trustworthy image that you can leverage to reach a wider, more diverse audience.

According to Clutch, 24% of SMEs have improved their business efficiency thanks to outsourcing. 

Because you no longer have to worry about managing an in-house telemarketing team, you now have the time and resources to focus on the business’s core functions. You can invest 12% of resources in research and development, as well as reduce time-to-market by 25%, both of which aid you in your plan to grow and scale.

Who you partner with matters, so you must be rigid with your selection process. We’re sharing some steps to narrow your search to the most suitable BPO partner.

What would you like to have in a BPO partner? Look at your current situation and check the needs you want them to meet. For example, your ideal BPO partner will do the following:

• Handle all recruitment, hiring, and resigning processes
• Train the team according to your SOPs, including familiarising the team with your brand, product, and customer profile
• Offer transparent, affordable, and flexible pricing (no hidden fees)
• Send regular reports and meet KPIs
• Communicate with you regularly
• Conduct business legally and ethically
• Prioritise data privacy and security

Aside from those, they must also possess these qualities:

• Transparent
• Trustworthy
• Understands your business or industry
• Shows proven results/outcomes
• Values a strategic partnership

Research all reputable telemarketing BPOs nearshore and offshore. Then, shortlist the ones who meet your criteria.

We recommend looking at geographical locations with a low cost of living, as that means low cost of labour. The Philippines is a good place to start, where companies like Logix BPO, Teleperformance, and SYKES have offices.

Don’t take this step lightly, as some BPOs will make untrue claims about their capabilities. To verify, we recommend connecting with former or current clients and partners. It’ll ensure you get firsthand information about the company’s performance. 

Their insights will give you a realistic picture and perspective on the company’s ability to meet expectations regarding service quality, reliability, communication style, and problem-solving approach.

Your most suitable telemarketing BPO partner must have values and culture that align with yours. Ensuring so is vital to the success of your collaboration, especially in achieving desired results. For example, your shared commitment equates to easily integrating the outsourced telemarketing team as an extension of your internal staff.

While it’s good to have an in-house telemarketing team, it’s only suitable if you’re a big, financially well-off company like Apple. For SMEs, building an outsourcing telemarketing team is much better because you can:

• Save on costs from managing an internal team
• Spend your time and resources on other critical business activities
• Provide an elevated customer service experience

At Logix BPO, we provide you with a team with the knowledge and skills to make your telemarketing campaigns successful. They will handle all inbound and outbound calls, solar sales, and lead generation, no matter if it’s B2B or B2C.

Are you ready to take the leap and accelerate with an intelligent remote team?