IBS (International Business Systems): The ROI of an Outsourced Business Development Program

IBS, a $300 million international software company, had cycled through four business development firms before hiring JMS Elite in 2002. In the first 15 months, the partnership closed four new customer contracts totaling $1,388,000 in license fees — breaking even in 8 months with 815% ROI over 12 months and 1,590% over three years.

2002–2015 · $12,500/month program · 7-month average sales cycle · $175,000 average license revenue

Results

• $1.388M — in new license fees in the first 15 months
• 815% — return on investment over 12 months
• 8 Months — to break even on program cost
• 1,590% — projected ROI over three years

The Challenge

• IBS had been through four different business development firms in a few years, each lasting three to twelve months, with poor results and unfulfilled promises.
• A fifteen-person marketing department and a $2M+ budget were not producing consistent pipeline.
• Account Executives who generated their own leads let cultivation lapse whenever they were working active deals — leaving repeated gaps in the pipeline.
• Leadership demanded marketing and sales costs come in line with revenue projections within 18–24 months.

Our Approach

• A structured pilot designed to prove — or disprove — the ROI of outsourced business development against the in-house alternative.
• A dedicated, seasoned calling team giving IBS a peer-to-peer voice with executive decision makers across the US and Canada.
• A standing weekly call with the JMS Elite team to review calling strategy and make adjustments.
• Parallel internal restructuring: IBS realigned inside sales by availability and vertical expertise to keep up with opportunity flow.

The Results

• Four new customer contracts closed in the first 15 months, totaling $1,388,000 in license fees.
• New customers included a consumer goods distributor to schools and retailers, a Canadian pharmaceutical distribution cooperative, one of the largest US wine and spirits distributors, and a major consumer goods manufacturer and distributor.
• $320,447 in earned services income on top of license fees, with $1,074,748 more projected.
• Break-even in 8 months; 815% ROI over 12 months and 1,590% over three years.
• Marketing spend dropped from over $2.5M to under $1M while producing comparable license revenue.
• The relationship ran from 2002 to 2015.

In the Client's Words

"It didn't seem to matter how much time we spent researching the company, checking their references, planning the campaigns, or training their people, we just weren't producing the results we were looking for from our external business development." — Dan J. Wells, Director of Marketing, IBS-US

"Our marketing expenses were running in excess of over $2,500,000. Today we are at less than $1,000,000 and producing similar results in terms of license revenue." — Barry Christian, President, IBS North America