Outsourcing And The Internet – New Ways To Get Burnt

In my last column, I discussed the importance of establishing your credibility when selling online, covering the fact that even if you’re a major NZ company, that would-be client in France or the States may never have heard of you - it’s important to cover off both the tangible and intangible factors of your offering. You must present your company as being solid, reliable, friendly, and professional, at the very least.

But what about the other relationships involved in managing a company website?  So much of the business press focuses on business models and the supplier-consumer relationship, that another vitally important partnership is too often ignored.  Here I’m talking about the suppliers to whom you outsource some services – website developers, content providers, hosters, researchers, adservers, and so on.  The new and fast-changing nature of the commercialized internet has resulted in a plethora of new business needs and potential outsourcing partners from which to choose.  This wide range has been exacerbated by contributing factors such as the highly technical nature of some solutions, the need for dedicated specialists, the lowered start-up costs faced by newly-established suppliers, and of course, by the willingness of many companies to use these new suppliers. For example, I’ve had advertising agencies lament the situation which sees their clients using them for all their marketing – print, TV, radio, cinema etc,  but going elsewhere for their interactive solutions.

Obviously such clients see worth in outsourcing to specialized suppliers, and rightly so – although given my past roles with the specialist internet market research company RedSheriff, and with search engine strategy company First Rate, my orientation is obvious to all.  But this experience is important. I’ve seen where specialist companies are vulnerable, and where they’re strong.  Plus just exactly what they can offer over and above traditional suppliers, who may sometimes know less than you, who are actually involved in “doing”.

So what are some key issues to consider when outsourcing, particularly when one option is to outsource to a relative newcomer, an internet specialist? The first rule should be to apply the same outsourcing procedures and criteria as you have always used.  People who tried to change the rules too much for “the new economy” found to their chagrin that the same business rules apply – I know one local website development company who still publicly states the importance of a “cool clothing sense” amongst their staff.  They’re still small-fry.  Compare that to the ultra-professional might of heavyweights such as Zivo.  So don’t just choose the cool guys in black.

Other questions worth asking fall in the old risk-management category…

• Do you want a narrow, specialized solution or one which is fully integrated into your other related activities?
• Is it likely to be a long or short-term relationship?
• Could other suppliers or partners pick up any loose ends if necessary?
• How much of the service’s value is in just one or two people, and what is their status within the company?
• What importance may be placed on their prominence or credibility? Especially if your choice has to be justified to colleagues?
• Is it a hardware, software, or peopleware (consulting) service?
• What is their track-record, with whom, and can you speak to these past clients?
• How specialized is the nature of the work to be outsourced? 
• How important is a specialist over a generalist for your specific needs?

The great advantage to be gained from systematically asking these questions is that the answers may reveal a highly viable option: that of using a small, perhaps new, specialist supplier for your website management.  And regarding size - don’t let it dictate your choice. Affordable technology such as desktop publishing, semi-automated accounting systems, and the internet itself has allowed for new businesses to be established where in the past these suppliers’ true talents may have been restricted within a larger company.

This can open up a fabulous relationship with a dedicated supplier-cum-partner, who really appreciates your business and who has the flexibility and autonomy to do their absolute best for you.

Jonathan Dodd