The main reason companies outsource telemarketing operations is that setting up a large-scale outbound call center is expensive and complicated. First you need to make a large capital investment in phone lines, furniture, floor space, computers, and software. In addition, you will need to hire and train TSRs and management staff.

Other factors can contribute to the decision to outsource:

• Significant growth - Rapid growth can quickly overwhelm in-house telemarketing staff, but providers can quickly add reps if you need to increase volume. Seasonal businesses benefit by adding reps only during busy times of the year.
• New sales channels - Companies just getting into telemarketing can tap the expertise dedicated outbound call center firms can provide in creating lists, designing scripts, running tests, and managing campaigns.
• Testing - Today's technology makes it easy to measure the success of new telemarketing programs. When testing new sales programs or products, large companies may find it easier and cheaper to use a call center than to retrain in-house employees. Small companies may also find it easier to do so than to build a call center and hire staff.
• Specialty services - Companies that do business around the globe may want to switch to a two- or three-shift operation or operate in multiple languages. Using an outbound call center provider can smooth both of those transitions.

In addition, telemarketing service providers can provide cost savings to many companies. They already have the hardware, manpower, and expertise -- as well as the economies of scale-- that allow them to operate at a much lower cost than companies that set up their own in-house operations.