Website Development and Hosting: In-House or Contracted?

Some organizations do not contend with the question of in-house development or contracted development. They do not have the capabilities so they must contract to a developer. However, some organizations struggle with this question or other aspects of interactive technology such as web hosting. In most cases, it makes sense to contract the development and technology solution rather than attempt it on your own.

Websites have become complex communication tools incorporating many types of technologies to deliver a solution. These technologies require unique and specialized skill sets, many of which are too numerous for one person to acquire at an expert level. It is still possible to develop an informational website using graphic design programs and an HTML editor. These are the sites that one person within an organization can develop. However, most sites I see performed in-house usually fall short in the aesthetic realm. Today, most sites require intelligent systems for fulfilling customer needs or internal processes. Usually this is accomplished through complex database driven sites utilizing high-end programming languages. Also, with the proliferation of broadband connections, sites are incorporating more multimedia driven content utilizing video, audio, Flash and other specialized technologies. When contracting to a firm that specializes in web development, they have capable personnel who are experts in graphic design, programming, Flash, and other specialized technologies. By relying on experts within an outside organization, you end up with a site that works better, looks better and in the long-run costs less than trying to handle everything yourself.

Website hosting is even a more clear-cut issue. One simple phrase justifies contracting this service out – economies of scale. The hosting industry is so competitive, providers have cut hosting costs down to a minimum margin. There are so many factors involved in providing a solid hosting solution such as connectivity, hardware, software, backup systems for data and power, security, monitoring and more. Providers achieve economies of scale by sharing the cost of all the technology and systems required among all their hosting clients. Let me give you an example. Recently, a client inquired about bringing the hosting of their three websites in-house. One site utilizes high-end technologies and the other two are basic information sites. The cost of hosting all three sites through my organization is less than the cost of the client acquiring a T-1 data line (a type of constant connection to the internet), which is the minimum of what is required to host a website and deliver an adequate level of performance. The client then needed to consider hardware and software licenses, maintenance, security, competent staff to maintain the hosting environment and more. Needless to say, the client is not moving forward with their initial idea.

In the end you must ask yourself, how important is my website? If it serves a mission-critical role or even a marginally important role, you want solid performance and a great site. Even some of the largest dot-coms and brick-and-mortar companies host their sites externally in a datacenter. Some have internal developers and designers but as the Internet is evolving to a mass-market medium, the need for interactive specialists is becoming greater. So, in most cases, seek out an interactive agency. They have the skills you need. Most interactive agencies will provide hosting services as well at the same price if you went direct. Economies of scale and expertise are driving success in today’s market. Focus your energy into further development of your products and services. Become the expert in your field and create economies of scale for your market. You’ll be glad you did.