Have you ever considered the benefits of incorporating sales outsourcing into your sales cycle? Andreas Spousta, our German countries manager of more than 13 years, sheds light on the advantages of sales outsourcing in Germany and how it can alleviate the burden of sourcing all the necessary components for your sales process. Let's delve into why Sales Outsourcing can be particularly successful when expanding your tech business into the DACH market.

Why choose Sales Outsourcing in Germany?

What is sales outsourcing? Sales outsourcing is the practice of hiring a third party vendor to accelerate your sales process. Germany's outsourcing industry is experiencing a significant boom as the need for technological expertise in developing high quality service grows in demand. This surge is attributed to organizations' efforts to formulate more efficient revenue-generating strategies. With over one-third of German companies embracing outsourcing, why should you miss out on this burgeoning trend?

German automotive sector

Germany's automotive industry is among the most lucrative industries in the region, Andreas reminded us. The automotive aftermarket industry, which now includes a significant embracing of automotive technology, is expected to reach over $22 billion by 2025, owing to the need for maintenance and replacement components in durable European vehicles. Hence, it is an opportune time to expand sales into this sector.

If your proficiency in the automotive industry is lacking in your sales language, it may be beneficial to explore the option of partnering with sales engineers as outsourced collaborators. Automotive tech brings together complex integrations on the edge, as well as specific machine learning use cases that often demand a more technical sales process with many stakeholders. Sales engineers can offer valuable product feedback and clarify the proof of concept.

German fintech sector

Andreas explains how sales outsourcing can be highly beneficial for companies operating in the finance industry in Germany, especially during the current period of high change and transformation. With the loss of Wirecard, which was a significant player in the finance industry, the sector is undergoing a major shift and is actively seeking innovative fintech solutions to cope with this setback and to restore its image. 

In this context, outsourcing sales can provide a cost-effective way for companies to leverage the expertise and local German network of experienced sales professionals, who can help you develop and market new applications and services that are better suited to the changing needs of the DACH finance industry. 

By partnering with sales outsourcing providers, companies can gain access to a broader range of skills and knowledge, reduce their time-to-market for new products, and ultimately enhance their competitive position in the financial market as well as the growing InsurTech market. 

Given that a significant amount of funds are currently being directed towards green investments in Germany, companies like Sales Force Europe can help you ensure that your business is well-positioned to meet this demand.

German telecommunications sector 

The telecommunications sector in Germany is diverse and tough to crack. Andreas names various major players such as Vodafone in Dusseldorf, O2 in Munich, and Deutsche Telekom in Bonn. While these companies offer ample opportunities for tech sales, it's crucial to have the right networks to generate sales in these established markets. Across Europe, telecommunications sales rely on long-standing customer relationships.

RCR Wireless News reports that the 5G technology is continually evolving in Germany, with Deutsche Telekom's 5G network now accessible to 94% of the region's population. This presents an excellent opportunity for sales outsourcing companies in Germany to leverage their expertise and sell these cutting-edge technological advancements to gain a competitive edge. Outsourcing sales can provide access to a wider range of skills and knowledge that may not be readily available in-house, making it an attractive option for businesses looking to stay ahead in this rapidly evolving industry.

What could hinder clients from opting for Sales Outsourcing in Germany?

So what are the common concerns that may prevent companies from venturing into the realm of sales outsourcing?

1. Performance targets: There may be reservations about relinquishing control over performance targets to a third-party company. One potential benefit of this is that it allows businesses to focus on their core competencies while leaving the sales function to experts. Sales outsourcing can also enable businesses to tap into the latest sales technologies and best practices, which can result in improved performance and better results.

2. GDPR regulations: The complexity of the E.U.’s General Data Protection Regulation or GDPR regulations requires companies to ensure the confidentiality, security, and accuracy of the personal data that they process. Many clients may not fully understand their obligations and responsibilities under GDPR, which can lead to non-compliance and potential legal penalties. There may be concerns about the cost of compliance, as ensuring GDPR compliance requires significant resources and expertise. This can make outsourcing sales functions more expensive if the provider must invest in additional measures to meet GDPR requirements. This is especially true as Germany takes data privacy particularly strictly and prefers to house the data in Germany or at least within E.U. countries, meaning you need local partners.

3. Marketing funds: Reducing overheads by cutting marketing costs has become a common practice in light of the impending recession. However, prioritizing marketing efforts is crucial for meeting deadlines and building networks that generate sales. Any messaging to the German-speaking markets should be localized into the language and to reflect the DACH market’s emphasis on quality.

What makes Sales Outsourcing successful in Germany?

Andreas emphasizes the importance of having a dependable advisor for clients who can assist in understanding market trends and local nuances, especially in the DACH (Germany, Austria, Switzerland) regions where localized approaches are preferred. The provider should have a thorough understanding of the local business culture, language, and customs, as well as comprehensive knowledge of the sales landscape within the relevant industry. Make sure that your outsourcing partner has consistently demonstrated the success of their localized strategy and the flexibility to adapt to your client base.

Personalizing sales techniques that cater to a specific demographic can be achieved through sales analytics and predicting future budgets. Ultimately, this comes down to understanding when in the sales cycle the customers are likely to spend — and how many stakeholders are often involved in decision making — so that businesses can align their spending accordingly. 

Successful sales outsourcing in Germany requires a commitment to ongoing training, support, and feedback. This can help to ensure that the outsourcing provider has the necessary skills and technical domain knowledge to effectively sell your business's products or services and can help to identify areas for improvement and optimization over time. Sales Force Europe not only grants access to target clients but also offers feedback to companies availing of sales outsourcing services across a network of industries globally. 

According to Rick Pizzoli, the CEO and founder of Sales Force Europe, “the more complex your sales process is, the more experienced your team needs to be.” This is particularly critical in Germany, which is one of the most challenging markets to penetrate, especially given its strict GDPR guidelines. To ensure success in qualifying B2B leads and converting them into sales, networking with outsourcing partners can help to mitigate the risks of running afoul of regulations and encountering issues such as bounced emails.

Summary of Sales Outsourcing in Germany

To round off, sales outsourcing can provide numerous benefits for companies looking to expand their sales cycle in Germany, particularly in industries such as automotive, finance, and telecommunications. With the country's booming outsourcing industry and the need for innovative solutions in the face of major changes and transformations, outsourcing sales can offer a cost-effective way to access the expertise and resources of experienced sales professionals.

Companies may be deterred by concerns such as performance targets, GDPR guidelines, and marketing funds. Nonetheless, partnering with established companies such as Sales Force Europe can mitigate these concerns and help companies navigate the complex sales landscape in Germany. Overall, incorporating sales outsourcing into your sales cycle can alleviate the burden of sourcing all the necessary components for your sales process and ultimately enhance your competitive position in the market.

Also check out our guide to B2B lead generation in Germany, a perfect compliment to this piece. Viel Glück!