Uncertainty in economy and intensive competitive pressure is shifting the focus of companies to seek the service of expert BPM providers to manage their core business process such as sales and marketing. According to a latest research by Deloitte, there is a visible increase of 22% in the sales and marketing process being handled by service providers.
Another study by Pareto Global Associates, leading sales and marketing firms based in Yorkshire also concluded this growing trend of enterprises seeking support of BPM providers in managing their sales and marketing functions.
So why are the companies, both big and small seeking the service of BPM providers to manage their core business activity, sales and marketing?
There are many reasons for the companies to decide on handing over the process to BPM providers to manage. The first and foremost reason is cost reduction. According to the study conducted by Pareto Global, seeking the service of BPM providers to manage the sales and marketing process helps the companies to reduce cost up to 62%.
The BPM providers free the companies from bearing the extra cost for hiring and training the marketing professionals. They also help the companies to release the capital reserved for sales and marketing activities to be invested elsewhere in business.
Cost cutting may not be the only reason for hiring the service of BPM providers to manage sales and marketing affairs but it has been always the main reason.
The other factors that led to an increase in demand for outsourcing of sales and marketing services are:
- Focus on other core areas: According to the studies, seeking the service of BPM providers to mange sales and marketing activities help the companies to focus on other core areas of the business like delivery and product management. The companies are able to shift the focus of workforce to the areas in which they have expertise.
- Increased competitive advantage: When a company maintain an in-house team to manage the sales and marketing activities expenses are incurred in terms of research, development, distribution, training of sales personnel etc and these expenses are transferred to customers which can create a negative impression. While on the other hand, the cost structure and economies of scale that a service provider offers gives the companies a competitive advantage over the competitors by reducing the price of the product.
- Risk reduction: Market competition, government regulations, financial conditions and technologies pose a risk for the companies. The BPM providers with their expertise in the field manage and in fact mitigate the effect of these risks on the operations of the company.
- Speed to market: The BPM providers ensure that the new campaigns, information of new product and services and promotional offers reach the customers with speed.