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Tuesday, January 24, 2006

Problems from Outsourcing

The concept of outsourcing is actually ancient. Apart from cost considerations and required expertise, we understand that nobody can execute all tasks by himself. Outsourcing to others what they do more efficiently is a successful management strategy. However, it doesn’t mean that outsourcing is 100% foolproof and doesn’t have any drawbacks. Indeed there are also certain Problems from Outsourcing which exists, but if we see the trade-offs, we find it useful in many sense.

Let’s see some Problems from Outsourcing, how they crept in and what should we do to overcome them. Offering web development services has been problematic to many advertising agencies and design firms. Offering web development services has been problematic to many advertising agencies and design firms. Technical difficulties have certainly created Problems from Outsourcing, but there have also been barriers with regard to design, strategy, and making money on these projects. In some cases these Problems from Outsourcing have been so severe that the agency has made a conscious decision to avoid web work altogether. Due to these Problems from Outsourcing some agencies have not given up and continue to include web design services among their capabilities. In these cases, technical complexities have forced agencies to limit themselves to creating simple static HTML sites, Flash sites, or limited database driven sites. Agencies are tough; they will usually find a way to get things done despite of Problems from Outsourcing. They are used to solving problems, and managing their clients’ needs. Nevertheless, web projects are typically among the most problematic and ultimately least fun projects for most agencies, and they often lose money. As a result of these Problems from Outsourcing the web is usually not an area where agencies aggressively solicit their client's business. At best it is a service they’re willing to provide, but on a limited and cautious basis.

Caution is always called for when discussing a client’s web needs due to these Problems from Outsourcing. It’s certainly better to under promise and over deliver than to promise capabilities that end up being impossible or too costly to build. Such failures can be costly not only financially, but also to the very delicate agency - client relationship itself. I have heard more than one story where a very bad web experience contributed to, if not caused, the loss of an agency’s client.

On top of all these issues and Problems from Outsourcing, many agencies have found it difficult to compete for their existing clients’ web business. They often find themselves pitching against other specialized web development firms who offer design as well as the advanced development services that the agency doesn’t provide. Sometimes the agency can keep the design piece, sometimes not. The irony of competing for the Problems from Outsourcing, risk, potential danger, and limited if not negative financial gain associated with web projects is hardly lost on the agency. What’s the point? And so, most agencies and design firms struggle to keep their hand in the game. They have become passive with regard to their client's web endeavors, or simply avoid it altogether.

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