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Outsourcing Web Services: Is It Right For You?
By Don Sussis
May 23, 1999

Weigh the Pros and Cons
A careful evaluation of your company''s needs and wants along with determining its technical resources and capabilities should be the next step in deciding which services you should outsource. This may soon become a moot point as the level of expertise needed for a first class business web site, due in part to the labor-intensive processes behind the programming, has become so complex that the level of skills necessary for success may be beyond your company''s grasp. Site concept and design, billing and payment processing, and order fulfillment are classic examples of frequently outsourced services. Other applications, such as Web site hosting, advertising, sales and marketing are also popular outsourcing candidates.

The nice thing about outsourcing is that it gives you access to potentially higher skills, and professional web management. It also lets you avoid "re-inventing the wheel" -- you benefit from costly mistakes already made by others instead of making them yourself. That is, of course, if you select your vendors carefully.

Another positive feature about outsourcing is that, with patient and careful collaboration, costs and deadlines can be pegged to a delivery schedule that can be controlled. Insider work may be more difficult to control -- depending on your organization.

Lay the Groundwork
Before jumping in feet first and hiring a solution provider, any future netrepreneur should develop a technology plan. Typically, technology plans fall into three phases: pre-production; production; and post production.

Pre-production includes establishing a business plan, setting strategic objectives, analysis of your needs, setting up a partnerships, gauging the short-, mid-, and long-term objectives of the site, and some consideration of how what you do now will impact your flexibility in the future -- often referred to as the "scalability" of the site.

Production includes all of the design and creative skills necessary to actually make your site. This includes ease of navigation, the look and feel of the site, and static versus dynamic aspects. Included in this last concept are items such as linkage to databases. This is very important if you want your site to deliver customized messages and create personalized features. It is the key way in which exciting interactivity occurs.

Other important aspects to consider at this phase include capabilities for transaction processing, cross state/border taxation, and order processing. Customer service is a key for success so decisions must be made about handling customer inquiries, providing support, establishing mechanisms for credit or returns, cross marketing and promotion, timely delivery and follow-up. The role of email as a channel for efficiently communicating with customers also needs careful consideration. Deciding how prepared you are to go it alone in each of these areas -- versus seeking to outsource the functions -- will be vital to your site''s success.

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