5 Key Reasons Why Companies Are Outsourcing Channel

by | Jan 6, 2016 | Industry News

SAN JOSE, CA–(Marketwired – January 05, 2016) – A question asked when talking to Channel leaders, Heads of Sales and CEOs is “Why would I outsource my channel, I need to be close to it?” This is the same question you would have heard about Payroll, HR, Marketing and Inside Sales only 10 or 20 years ago. However, it is now accepted practice to outsource these and other functions. Tech companies everywhere are benefiting from expertise, flexibility and increased productivity from working with specialists who have a focus on delivering results.

Outlined are five compelling reasons why technology companies are beginning to outsource all, or specific elements of their channel operations

  1. Access to Experts

Recruiting a channel team that is able and willing to undertake all of the different tasks necessary to build and manage a successful channel sales operation is expensive. When technology companies are just starting out and growing, they tend to employ a channel manager who is strong in one aspect.

Outsourcing allows you to break out the various tasks, such as partner recruitment, training, certification, partner support, channel enablement and sales support etc. There is no need to permanently employ a specialist for each individual area. A specialist channel outsourcing company is able to allocate the necessary resource to undertake each of the roles sequentially.

  1. Fast Results

Being able to employ a full channel team from the creation of the channel plan, through recruitment and full enablement, enables tech companies to run a full channel operation without having to recruit and manage a channel team of at least 3 or 4 people.

The partner identification and recruitment process is accelerated by using a team with strong connections and relationships, and the resources to qualify and engage quickly. Once the recruitment process is complete, the training and certification expert can immediately take over, followed by the enablement team to ensure that each partner becomes productive as soon as possible.

  1. Financial Gains

The average cost of building a Channel team, rather than hiring one generalist (who can never achieve everything), is in the region of $600,000 per year as a minimum. Outsourcing not only enables you utilize to specialists in each phase of running the channel, it also significantly reduces the cost of running your channel by an average of 40%. You are only paying for the resource you need at each phase and the time of an experienced channel manager to manage the process and team.

The average annual savings, combined with the acceleration of channel recruitment and enablement results in doubling sales performance for every technology company that looks to the channel for growth.

  1. Accelerated Regional Growth

For most organizations, when they start out with their channel team, they are restricted to a single region, whether it be North America, Europe or Asia Pac. Outsourcing to a channel expert should also enable you to access different geographies and languages, whilst maintaining a single relationship. Establishment of the channel and subsequent revenue can be achieved in half the amount of time.

The flexibility of working with the same company, regardless of geography or language, allows technology companies to concentrate on their core business and recognize the benefits of generating customers worldwide.

  1. Concentrate on Core Competencies

A common issue for the Senior Management team when starting to build sales and channel operations is a lack of experience in building and growing global sales and channel teams. Undertaking the job in-house means one of two things: either the Executive team must undertake a task they have no experience in, or they have to hire an expensive additional management team member to oversee the operation, as well as hiring a channel organization.

Outsourcing to a global sales and channel specialist allows the Executive team to manage an expert against an agreed set of objectives, allowing them to concentrate on core competencies and progressing the organization in line with the business plan.

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