The Ultimate Guide To Salesforce Outsourcing

Organizations worldwide are leveraging Salesforce outsourcing to streamline their operations and drive growth.

By outsourcing Salesforce needs, you can benefit from the expertise of a full-fledged project delivery team. The learning curve is reduced, and any potential inefficiencies are avoided.

Although outsourcing is an effective strategy, not many understand the different types of outsourcing options and how to choose the right model. This blog is the perfect starting point.

Why do Organizations Leverage Salesforce Outsourcing?

There are numerous reasons why organizations choose Salesforce outsourcing companies, including:

Pros & Cons of Salesforce Outsourcing

Outsourcing Salesforce needs has its pros and cons. To decide whether it aligns with your requirements, consider the following pros and cons:

Salesforce Outsourcing Options

When considering outsourcing Salesforce needs, it is important to understand the different options available:

Onshore Outsourcing

It involves hiring Salesforce professionals from a third party in the same country as your organization. For example, an organization based in the United States outsources its Salesforce needs within the USA.

Let’s understand the pros and cons of onshore Salesforce outsourcing in further detail:

Pros of Onshore Salesforce Outsourcing

1. Better Accessibility:

Onshore Salesforce development teams are more accessible as they are located in the same time zones. You can coordinate with them during your regular working hours and address issues promptly. This allows smoother coordination of tasks resulting in successful project outcomes.

If the onshore partner is within close proximity, you can even conduct in-person meetings and training sessions.

2. Familiarity with Local Business Regulations:

Since onshore Salesforce partners operate in the same country as yours, they are subjected to the same data protection and privacy laws. This provides certainty that sensitive data is handled in compliance with local laws.

Additionally, onshore partners have industry-specific knowledge of your country. This can give you a competitive advantage as you would have a better understanding of the local market dynamics and customer preferences.

For example, Teach For India (TFI), an Indian non-profit educational organization, partnered with us for a Salesforce integration project. To ensure seamless integration, we engaged our India-based team. Since the team had a good understanding of the Indian demographics, we were able to tailor the solution to client needs. You can learn more about the Cyntexa and Teach For India partnership here.

Furthermore, onshore partners would likely have a network of local connections. You can leverage their network to build connections and drive organizational growth.

Cons of Onshore Salesforce Outsourcing

1. Higher costs:

The most obvious downside of hiring an onshore Salesforce partner are the higher costs as compared to other outsourcing options.

For context, Salesforce Ben’s Career and Hiring Guide 2022-23 shows how much Salesforce developers earn in different regions of the world. Here are the results of the survey.

As evident from the above data, hiring onshore Salesforce developers, particularly in the United States is significantly expensive compared to if you were to outsource to other countries.

To learn more, refer to our recent blog outlining remote Salesforce developer costs in various parts of the world.

2. Limited Talent Pool:

When hiring an onshore Salesforce partner, you’re restricting yourself to the Salesforce talent available in your country. Due to the limited talent pool, scaling up your team can be challenging.

In addition, onshore outsourcing can be affected by local market conditions. Changes in labor laws, political instability, and economic downturns can impact the ability of outsourcing partners to provide consistent services.

Nearshore Outsourcing

It involves hiring Salesforce professionals from a third party based in neighboring countries. For example, an organization based in the United States outsources its Salesforce needs to Canada or Mexico.

Nearshore Salesforce outsourcing has pros and cons identical to onshore outsourcing.

Pros & Cons of Nearshore Outsourcing

Offshore Outsourcing

It involves hiring Salesforce professionals from a third party located in another country. For example, an organization based in the United States outsources its Salesforce needs to India.

Let’s understand the pros and cons of offshore Salesforce outsourcing in further detail:

Pros of Offshore Salesforce Outsourcing:

1. Cost Effective:

One of the primary reasons organizations choose offshore Salesforce development is the possible cost savings. Salesforce offshore destinations such as India have lower labor costs than countries like the USA.

As discussed earlier, the average rate to hire Salesforce developers in the United States is $127.50 per hour. However, if you hire an offshore Salesforce development team from India, you can reduce your spending by up to 30%.

2. Access to Global Talent Pool:

Offshore outsourcing provides access to a global talent pool. This talent may not be readily available or affordable in your local market or nearby countries.

In addition, offshore Salesforce developers have exposure to different markets and industries. They can bring new perspectives and inventive ideas to your team, leading to enhanced problem-solving.

3. Faster Turnaround Times:

When you outsource Salesforce needs to a country with a time zone ahead of yours, you can benefit from the time lag.

For instance, say you’re an organization based in the United States and outsource Salesforce needs to a team in India. By opting for this approach, you can assign tasks at the end of your working day, and the India-based team can work on them while you’re offline. You can expect the tasks to be completed when you start your work the following day.

4. Reduced Dependency on Local Market Conditions:

By partnering with an experienced offshore Salesforce partner, you can reduce your dependency on local market conditions.

As discussed earlier, changes in labor laws, political instability, and economic downturns can significantly impact your organization.

For instance, on January 01, 2020, California implemented Assembly Bill 5 (AB5). The bill required companies hiring independent contractors to reclassify them as employees. This meant that employers now had to provide them with benefits like minimum wage, health insurance, and other benefits entitled to under California state law.

By working with an offshore Salesforce development company, organizations could still have access to Salesforce expertise without the burden of complying with the requirements of AB5.

Cons of Offshore Salesforce Outsourcing

Data Security & Privacy Concerns: If your organization deals with sensitive data, outsourcing Salesforce needs to a different country can be a concern.

However, you can address these concerns by following the best practices outlined below:

1. Thoroughly research the outsourcing provider. Check their website, reviews, case studies, and ISO certifications (preferably ISO 27001). You can also request references from their current or previous clients.
2. Before engaging an outsourcing provider, sign confidentiality agreements. Typically, the offshore partner would already have a template they use with other clients. You can have it reviewed by a lawyer, or get one drafted from scratch.

Types of Salesforce Outsourcing Providers

There are also different options for choosing Salesforce outsourcing service providers. Selecting the right one depends on the specific needs of your organization.

How to Choose the Right Salesforce Outsourcing Model?

With a broad range of Salesforce outsourcing models, it’s important to consider the pros and cons of each model before making a decision.

When is Salesforce Outsourcing the Right Model?

Should you outsource Salesforce needs or build an internal team? Evaluating the following considerations will help you decide:

Consideration #1: Project Length
Outsourcing is a more logical choice if you need Salesforce expertise for short-term or specific projects. Instead of hiring and training employees for short-term needs, you can engage the services of a company offering Salesforce outsourcing solutions. Besides fixed-cost projects, outsourcing partners also provide resources (like developers, admins, QA’s, and architects) on a contract basis.

However, if you need Salesforce professionals for the long term or already have an internal team, you’re better off hiring full-time employees.

Larger organizations and digital agencies still prefer hiring professionals on a contract, even for longer projects. The specialized expertise, flexibility, and scalability offered by Salesforce outsourcing companies are unmatched.

For more information, refer to our comprehensive blog on whether to hire Salesforce developers full-time or on contract basis.

Consideration #2: Budget
Hiring full-time professionals involves overhead costs, such as salaries, benefits, equipment, and office space. If your organization has budget constraints, outsourcing can be a cost-effective solution. You can still access the required Salesforce expertise without the overhead costs.

Consideration #3: Time-to-market
If you need to implement Salesforce quickly, partnering with an experienced outsourcing provider can expedite the process. These firms often have proven project management methodologies and processes. By leveraging their expertise, you can reduce the learning curve and avoid potential inefficiencies that may arise when building an in-house team.

In addition, outsourcing allows scalability and flexibility. Instead of hiring, onboarding, or training new employees, outsourcing allows access to a pool of readily available candidates. You can quickly scale or downsize your team as per requirements.

Misconceptions About Salesforce Outsourcing

Salesforce outsourcing is a cost-cutting exercise, it’s not a long-term solution, it’s bad for the economy. There are many misconceptions people have about outsourcing. Let’s clarify them one at a time.

Misconception #1: Salesforce outsourcing is a cost-cutting exercise

Hiring an outsourcing partner is cost-effective, but cost reduction isn’t the only positive. In fact, according to Clutch’s 2019 survey of small businesses, the primary reason for outsourcing was increased efficiency (24 percent) and receiving assistance from an expert (18 percent).

For example, USA Hospitals wants to implement Salesforce to improve patient interactions. They employ a Salesforce developer. The organization will pay at least $116,000 yearly or even $155,125 (for a senior-level developer).

Aside from a Salesforce developer, they will also need an administrator, a QA, an architect, and a project manager. This would mean more fixed salary expenses for the organization.

On the other hand, if USA hospitals were to outsource Salesforce development, they would only be paying a fraction of the cost they’ll incur from hiring in-house employees. The learning curve is reduced, and the implementation process is fast and efficient.

Thus, by outsourcing Salesforce development, USA hospitals received top-notch Salesforce expertise at a lesser cost.

Misconception #2: Salesforce outsourcing is not a long-term solution

People often think that outsourcing Salesforce needs is for the short-term only or for project-based requirements. However, this is not true. Outsourcing can indeed be a long-term solution for Salesforce development, maintenance, and enhancements.

From our above example of USA Hospitals, once Salesforce is implemented in their organization, the client can hire a few administrators from an outsourcing partner for ongoing support and maintenance. When the client needs enhancements, they can again engage a project delivery team.

Most Salesforce outsourcing companies provide resources (like developers, QA’s, administrators, and architects) on a contract basis.

Misconception #3: Salesforce outsourcing compromises your sensitive business data

Established Salesforce outsourcing companies have a reputation to maintain. Any mishandling of sensitive business data would harm their reputation, so protecting your data is in their best interest.

If you choose the right outsourcing partner, this shouldn’t be a concern. You should look for ISO 27001-certified companies and sign confidentiality agreements. The outsourcing partner will typically provide you with a non-disclosure agreement (NDA) they use with other clients. You can review this with a lawyer or get a custom one drafted.

Misconception #4: Outsourcing is bad for the economy

People often think that outsourcing is bad for the economy. It contributes to unemployment. However, this opinion is biased and untrue.

Recall the point of cost-effectiveness. Organizations can reduce their expenses by outsourcing Salesforce needs to countries with cost-efficient labor. This will ultimately benefit the economy, as this cost-saving can be passed on to consumers through more affordable products & services.

In addition, organizations can allocate the saved resources towards expanding operations or investing in research and development. This growth often attracts investments and leads to the creation of new jobs.

Conclusion

There you have it, the ultimate guide to Salesforce outsourcing. By leveraging the expertise of outsourced Salesforce professionals, you can accelerate your Salesforce journey and unlock the platform’s full potential.

Do you have any additional Salesforce outsourcing tips? Any experiences to share? Leave a comment below.

Schedule a consultation call with Cyntexa to discuss your hiring needs. We’re a Salesforce Crest (Gold) Consulting Partner with a team of over 300+ in-house professionals and provide resources like Salesforce developers, Administrators, QA’s, Business Analysts, and Architects on a contract basis.