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Customers wary, but growth continues in IT

Finding buyers and sales opportunities may not be easy in 2012

Now, more than ever, IT and Consulting firms need to stress value and results as buyers search for demonstrable efficiencies and expertise in emerging technologies. But finding those buyers may not be easy in 2012.

Currently, market researchers Forrester, for example, are still predicting positive growth in world technology markets, even though the US and European economies are dancing on the edge of a recession. Their prediction is that business and government purchases of technology goods and services will see slowing, though still positive growth, in 2012. (http://www.forrester.com/rb/Research/global_tech_market_outlook_for_2011_and/q/id/57815/t/2)

Throughout 2012, the pressure to maintain an effective sales pipeline will continue, particularly in the UK and Europe.

INCo, a sales lead generation firm, working to help established and emerging technology firms identify qualified sales leads for products and services sees its services becoming more commercially important.

“Ambitious companies in the IT sector need to be able to generate a future pipeline of sales on the basis of good understanding of what is driving customers to buy. We not only help IT and Consulting firms to find business leads that match their products and expertise, but we also help them to understand the business rationale for purchases in both the public and private sector,” said Neil Ritchie of INCo.

Forrester is predicting  that 2012 growth will slide to 5.5% (from around 7% in 2011). IT markets of Western and Central Europe will have the slowest growth, with Eastern Europe, the Middle East, and Africa and Latin America growing the fastest.

Software market continues dramatic changes

Market changes mean sales departments have to change too

A “paradigm shift,” one of those dramatic changes which can spell the end of seemingly invincible companies and usher in a new competitive landscape, is quietly happening in the software and services market as companies implement variations on the cloud computing model.

One analyst firm – TechMarketView – predicts that the value of the UK cloud market will more than double between now and 2014 from £2.4bn to £6.1bn.

These forecasts would see cloud computing account for 15 per cent of the total UK software and information technology services market by 2014.

In times of change like this, it can be vital for IT firms – both established and emerging, to secure their positions as suppliers of choice to early implementors. That in turn demands critical market knowledge and awareness of the issues that are moving their clients and prospects. INCo, a specialist sales lead generation company, supports the view that buyers are expecting a new attitude from suppliers.

“Today’s buyers want industry knowledge as well as in-depth IT understanding,” said Neil Ritchie of INCo. “We help our clients to find those companies who are about to buy, and to understand the reasons behind their move. This kind of knowledge is vital in the current sales environment.”

TechMarketView are expecting these dramatic changes to continue beyond 2014.

“Beyond the forecast horizon we would expect public cloud growth to accelerate again as mission-critical legacy applications move to public cloud,” they say.

Never mind the prospects you know. What about the ones not on your radar?

In-house sales teams sometimes have a narrow focus on how to achieve sales goals. They like dealing with companies or industries they know. Sales prospecting on a broader basis isn’t what they’re good at.

But in today’s environment, it is more important than ever to ensure that IT solutions and service providers are meeting and engaging with as many prospective customers as possible – potential clients that have active projects relative to the portfolio the sales team can offer.

With pressure on corporate budgets ratcheting up,sales people are faced with two problems. The first is that, because of budget pressure, any remaining loyalties to existing suppliers are likely to be forgotten. The second is a matter of skills and bandwidth. How do sales teams find potential buyers in new companies and industries?

INCo is the UK’s leading provider of direct marketing and lead generation services specifically to IT and professional services organisations, and successfully resolves that issue every day.

INCo’s aim is to ensure that its clients are engaged with the ‘ideal prospects’ that they are not already aware of. The company already provides these services to software authors/developers, application and hardware services providers, system integrators and professional services organisations.

As well as providing qualified sales opportunities that our clients can immediately engage with, INCo also manage the “warming” queue of opportunities (in partnership with each of its clients) that with the right nurturing and development, will become fully qualified sales opportunities in the future. This is important as it allows sales teams to focus their efforts and resources on fully qualified opportunities, while their forthcoming pipeline of potential opportunities remains visible and measurable.

In this way, to paraphrase an old advertising line, in-house sales teams can ‘do what they do best, while INCo does the rest’. It’s a formula that is already working for many leading and emerging IT suppliers and consulting firms.

4 Reasons to Think About Oursourcing New Business Sales

New business sales. Overhead or investment?

Many IT and consulting firms (seeing this as a period when ‘who sells, wins’) are increasing their sales efforts to capitalise on future market potential. But will their investments pay off?

With at least some of these companies relying on increasing internal sales headcount to build their sales pipeline, INCo question whether that is money well spent.

INCo believe an outsourced sales model may get better returns and represent much better value than simply relying on in-house staff.  The company bases its argument on four key points, as follows:-

1. Farmers and Hunters

Most in-house sales staff are naturally farmers. They are used to looking after big accounts, strengthening relationships, ensuring customer satisfaction and ensuring that clients will provide referrals to peer groups. What they aren’t so good at is finding new opportunities with new clients. It’s a specialist skill and it needs specialists to find and develop those sales leads. INCo staff are calling and emailing into the market on a regular basis. They are specialist, skilled hunters.

2. Inhouse vs Outsource

Hiring expensive sales people to find and develop sales leads is something that IT and Consulting firms have done in the past. What they find is that the return to effort is often small. Once the opportunity has been highlighted, then different skills are required to open up and develop the relationship (farmers and hunters once more). Meanwhile, those expensive sales people sit on their hands. Hiring a company like INCo means you only pay for the resources you need.

3. Specialists needed

It takes specialist awareness to begin to find important opportunities for IT and Consulting products and services. The higher up the organization you target, the more your people need to talk about current business issues rather than technology features, solutions rather than products. Training your staff – who have focused on features and products – to do this will be difficult. INCo staff have a continuous education programme to keep on top of the issues of the moment. That knowledge is a key part of their telemarketing success.

4. A win/win situation

The INCo service works because it provides value to both client and potential customer of IT and Consulting products and services. Clients receive properly qualified sales leads and opportunities. Customers receive good advice on potential suppliers with the skills, market knowledge, products and experience that they are looking for.

Gaining new business can be a long and time consuming process. Using the right specialists at the right time can help companies find and qualify opportunities outside their normal sphere of operations. This is especially true for companies who need to be in touch with ‘C’-level executives.

Opportunities for consulting firms still growing

Gartner Says Half of all Large Organisations Will Revise Their Privacy Policies by end-2012.

Opportunities for high-level consulting firms will continue to grow over the next 18 months, according to IT market analysts, Gartner Group.

Data breaches, cloud computing, location-based services and regulatory changes will force virtually all organizations to review, and at least half of all organizations to also revise, their current privacy policies before year-end 2012, according to Gartner, Inc. These issues will dominate the privacy officer’s agenda for the next two years.

“All of these issues will provide new opportunities for sales-aware consulting firms who are keen to expand their client footprint and can demonstrate expertise in these areas,” said Neil Ritchie, managing director of INCo-online, a company that identifies and qualifies sales leads for IT and Consulting

Building a sales pipeline: issues with mapping through large organisations

Why telemarketing at C-level is a specialist business

Due to the increasingly complex hierarchies of the largest firms in the UK, and the multifaceted layers of corporate accountability within the subdivisions of these organisations, identifying those with responsibility for specific functions can be an arduous task.  This is why no one investigative method will provide all the information necessary to effectively map through these organisations, and target key decision makers on specific issues.

There is, quite simply, no substitute for continuous contact. But how can companies find the resources or the manpower to do this?

Better perhaps, to out-source this activity to a specialist supplier like INCo. INCo is a specialist business that is constantly cultivating techniques to define these decision makers and budget-holders within the FTSE 100, 250, and other markets.

INCo has successfully engaged with C-Level executives, at the vast majority of the UK’s blue chip companies on campaigns for consulting firms, confounding predictions that this is a market that would not be touched by telemarketing and similar techniques. Qualified sales leads have been identified for a wide variety of business issues like M&A activity, Cost Reduction , Process Optimisation, Risk Management, Regulatory Compliance, System Replacement, Strategy Creation and Alignment, Back Office Improvement and Sourcing Advisory Services to name but a few.

A vital aspect of INCo’s success in building a pipeline for clients across multiple industries is the firm’s ability to identify issues that are relevant to the target business.   The most pertinent information is gathered from decision makers themselves so obtaining a description of their responsibilities along with their immediate priorities can greatly assist our clients in terms of positioning their value proposition according to the prospects needs.

Often, these C-Level contacts will have so many areas of responsibility that it is important to identify their primary focus area prior to any discussion, otherwise you are leaving too much to chance and piquing their interest becomes more of a lottery than a calculated focused sales process.

The obvious starting place, before speaking to the decision maker, is to use the internet to source information, and INCo has several long established methods it deploys in this pursuit before calling begins.  PA’s and EA’s are also a particularly important source of information. INCo has proven methodologies for engaging with people in these job roles, and establishing effective relationships with them.

Market awareness,  and in particular knowledge of the prevalent industry issues, (and where possible the on-going concerns of the business in question), is necessary prior to engagement with the contact.  Recognising that a retail business has a focus on developing their multi-channel strategy, for example, allows INCo to position its client’s service offering and engagement history in this area, knowing that it is likely to strike a chord with the audience.

Understanding the regulatory concerns of financial institutions will prompt discussions surrounding Information Security, data protection and regulatory risk.  INCo consultants are constantly studying press and trade journals in order to ensure that they are fully aware of any information that could be utilised establish and maintain dialogue.

As with any sales campaign, a high volume of calls on a consistent basis is necessary to maintain the volume of conversations necessary to generate the market insight and sales opportunities that INCo delivers to its clients. This specialist commitment, coupled with the proven lead generation methodologies of the firm, (and INCo’s reputation for meeting clients’ expectations) is reflected in the rapid growth of the consultancy arm of the business.

Sales in the Cloud Era

As IBM reaches 100, what can we learn from a century of change?

IBM is celebrating its 100 year anniversary this year, and as the Economist magazine points out in its coverage of this unique event, IBM’s continuing success is due more to great customer relationships than innovation.

You can read more here: http://www.economist.com/node/18803123 but the ups and downs of newcomers and others in the fast-changing world of technology point to two things. One is that to ride those waves of change requires an attitude that says innovation is not as important as integration. The second is that you must preserve client relationships at all costs.

The current wave of change in the world of technology is the move to cloud computing, and, because it means that it no longer makes economic sense for software companies and others to maintain client relationships solely through expensive and numerous sales executives, they are faced with a challenge. How can these companies emulate the IBM example in a world where a top-heavy sales model no longer works?

The answer for many is INCo and its out-sourced IT telemarketing operation.

Because INCo only do one thing – namely to find and identify sales opportunities – the service allows expensive in-house staff to spend more time nurturing the clients they have, rather than searching for new ones.

Sales executives make the most of their time. INCo covers off the need for expansion and new clients.

Read more about the INCo sales lead generation service in this website, or get in touch if you would like more details. neil.ritchie@inco-online.com

European consulting firms will have to concentrate resources to grow

A Sourceforconsulting.com report published on 23 June this year, has put the total European consulting market value at around €25 billion in 2010, and, the report authors say, there is every indication that this growth will continue through 2011-2012.

Yet ambitious companies in the sector may still miss out on market demand if they are not geared to capitalise on sales opportunities, and the consulting market is changing, with decreasing expenditure on consulting services by the public sector, particularly in the UK.

INCo, whose business identifies and qualifies active sales leads for both IT and Consulting firms, has pointed out that while most consulting firms stress their abilities to network within client organisations, fewer are able to conduct effective sales campaigns using their sector and service specialisms to break into new accounts.

“In this growing market, with consultants gearing up in terms of resources and people, ambitious firms may lose out without effective new business campaigns. INCo is perfectly positioned to help consulting firms gain new sales on the basis of their special sector and service knowledge. We’ve proved that our telemarketing service works in the consulting market, both in the UK and in Europe,” said INCo managing director Neil Ritchie.

The INCo service could be particularly valuable, since the report indicates that fee rates have dropped by around 10-15 per cent, and while it is too soon to say whether the economic recovery will push fee rates back up, past experience of the 2002-2003 recession would seem to indicate that they won’t recover. That in turn will leave less scope for ineffective sales efforts.

INCo finds the link to consulting sales

According to an article in this week’s Economist magazine (http://www.economist.com/node/18774614?fsrc=scn/tw/te/ar/adviceforconsultants) consulting “work is booming… (with)… forecasts that consulting on operations-management … will grow by 5.1% a year, that on IT by 3.9% and that on personnel by 4.0%, between 2010 and 2014.”

The Economist’s view though, is that this work is getting harder to get, as strategy consultants vy for the growing volume of work further downstream in the organization.

Telemarketing may not at first sight seem like a logical first step when it comes to priming the sales pipeline for consulting work, but IT telemarketing experts INCo are showing not only that it can be done, but that telemarketing may be the forgotten tool in box when it comes to finding new clients and new opportunities.

“We’ve been working increasingly at high levels in companies who may have consulting and IT systems opportunities, and we’re finding an increase in interest. Consulting opportunities are becoming more numerous, and often companies don’t know where to go for specific knowledge – either of their market, or in applying particular technologies.”

Consulting firms generally aren’t geared to finding new sales – relying instead on referrals or word of mouth, but the INCo sales lead qualification service seems to add an important bridge between traditional marketing techniques and the sales function.

“We’re increasingly working with C-level executives and finding opportunities for substantial projects,” said Neil Ritchie of INCo.

IT and Consulting Telemarketing – Towards a More Successful Sales Model

IT and Consulting Companies need to reconsider how they deploy sales resources

Starting a telemarketing campaign requires careful planning – as Angela Kane’s earlier articles in this blog explained. More than that though, a telemarketing approach often requires a change of attitude on the part of sales staff, especially when they have been used to chasing high-value orders from blue-chip corporates.

Telemarketing in the IT and management consulting world is about establishing conversations – probing a company’s IT aspirations, priorities and technology roadmaps. At a higher level – the level dealt with by ‘C’ level executives – the conversations must revolve around the business issues confronted by companies in that marketplace.

In the changing world of IT sales, sales staff are often geared to a sales process that consists largely of a complex series of presentations that cover in-depth technical capabilities, future development goals, ability to meet and exceed functionality targets.

Of course, these capabilities are still required, but more and more often, they mark the end of the sales process, and not the beginning of it.

The advantage that INCo bring to IT and Consulting firms is the ability to find sales leads early in the sales cycle, and often to find them in higher volumes than an in-house team. The very successful INCo process forms a middle ground between traditional marketing programs and the corporate sales force, and creates an effective bridge between a company and its target markets.

INCo offers three types of service – bespoke sales-lead generation, a subscription service designed to get companies to feature in short-lists for sales, and a high-level telemarketing service that can help to prime the sales pipeline for the long-term.

You can read more about the INCo service on this website or find out more by contacting INCo directly.

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