Examining the Pros and Cons of CRM Outsourcing

The Business Analyst's ToolkitThe problem of most companies when they try to launch their CRM programs for the first time is not just whether they have the budget to implement it, but more importantly it is the apparent lack of technical capability, time and resources needed to accomplish the task on their own.

This is where the option of CRM outsourcing becomes practical for the company to take.

Detailed benefits of CRM outsourcing are itemised below as follows:

  • The company stands to benefit from the consultants or system integrators’ experience of undertaking similar prior projects with other companies. It would be as if they have benchmarked the things that were done on the other companies, with the added benefit that they will already have the prior mistakes already rectified and modified for your company’s benefit (you didn’t have to play the role of a guinea pig in terms of trial and error). These consultants or system integrators have the required experience and knows exactly how to translate your own unique requirements into that CRM system for a customized program to suit your needs.
  • You will have the benefit of an experienced team that will facilitate and/or coordinate with the different departments within your company for the requirements that need to be gathered in relation to the CRM program. They may even act as mediators in times of misunderstandings between the different departments if necessary as far as CRM is concerned.
  • You will have an experienced project management team who will act as intermediary between the CRM technology provider and your company to make sure that the pre-identified requirements are understood clearly and delivered as expected.
  • Experienced team to handle the customization of your company’s processes and procedures into your CRM program. In coordination with the company management and the technology provider, they will spearhead the task of configuring the systems and processes to achieve the CRM goals as originally identified.
  • Since they already have an extensive experience on CRM, they will be able to apply the best practices learned from other companies for your own benefit.

On the other hand, one possible negative effect of outsourcing your CRM program is that third-party providers may not apply as much effort or analyses into the act of translating your processes and procedures towards a workable CRM system as much as they should have if they were not hired on a consultancy basis. This redounds to a half-hearted effort which will effectively undermine the success of your CRM program from the outset.

Finally, it is very important that you check out as many references as possible before hiring any third-party company to handle the CRM implementation as you need to verify their past successful projects, within a similar industry as yours if possible, in order to ensure that they understand the basics of your business to be successfully translated and incorporated into the CRM program when the time comes.

Jacob Jackson works for one of the leading developers of online CRM - WebCRM. He also blogs a lot about this topic at the official WebCRM Blog.

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Alexandra Cordes

I am ICT Business Analyst with fifteen years of experience in a diverse range of business domains. I deliver results that are highly attuned to the unique nature of each business problem and are correctly aligned with business strategy.