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SI Review 


Outsourcing, a good source for new business

It's a Different Sell

The Outsourcing Institute also identified the following as key factors companies consider when selecting a vendor:

* Existing relationships
* Cultural match
* Price
* Location
* Flexible contract terms

Staffing companies already providing staff augmentation to potential outsourcing customers will find themselves at a competitive advantage, because their existing relationships have given them an opportunity to showcase their skills.

However, the decision to let go of an internal activity and allow an outside company to handle is made much higher up than decisions about straight staff augmentation. "It's risky turning a business process over to someone else," says Campbell. "It's a critical decision to transfer a function or relocate a processing center. . .it may involve detaching a number of people. These decisions are made at a very high level."

Casale agrees that it is often a strategic decision at the highest level of company management. "It's a C-level sell," he says, referring to titles such as CEO or CFO. Casale questions whether staffing services' existing sales staffs are properly trained to sell at this level and suggests it may be important to bring in outside sales professionals.

But Leslie Buterin, principal of TOP DOG CONSULTING. disagrees. Buterin, who conducts executive-level selling seminars, says outsourcing is a "P-level" (President) sell, because the CEO's agenda may be driven more by financial markets than by operations. And because the president of a company is not usually approached, he or she may be more accessible than most salespeople think.

Selling outsourcing to these high-level executives requires a different approach than selling staff augmentation services because it is not just selling a service but offering expertise, and it's offering that expertise to people who know its value. Since most company presidents are protected by a "gatekeeper", says Buterin, you mush choose your words very carefully when talking to gatekeepers to get onto the executives' calendar. Her advice: "Remember their job is to make sure the important calls get through." For an opening gambit, Buterin suggests offering a benefit statement such as, "We want to see whether or not we can save up to 20% of your workforce expenses."

Remember to talk to potential clients in terms of what they want to buy as opposed to what you want to sell, Buterin advises. Your best approach is not "Why we're better than the competition." That may work at lower levels. In the executive offices, you need to sell in terms of benefits.

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