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Building Web Site: In-house vs Outsourcing

One of the main aspects of e-commerce study is to learn how to actually build and host an e-commerce web site. There are many choices for building a web site, ranging from complete in-housed development to complete outsourcing. In-house development means that you need to have staffs, hardware and software. Outsourcing means that you need to hire outside vendors to provide services you cannot perform with in-house personnel (Laudon & Traver 2004, p. 201). There are four alternatives for building and hosting: completely in-house, build-in-host-out, build-out-host-in, and completely outsourced. This essay will describe the major issues surrounding the decisions to build and/or host a new e-commerce Web site or outsource some aspects of site development, including the advantages and disadvantages of each decision.Developing a Web site in-house requires more resources than out-sourcing. Such a development requires multi-skilled staff of programmers, graphic designer, web designer and project managers (Laudon & Traver, 2004, p.203). The firm will need to buy hardware and software tools. There is a broad variety of software tools for Web site development. Some tools can be used to create Web site from scratch such as Microsoft FrontPag


Examples of pre-packaged tools are Microsoft Commerce Server, IBM Websphere, and OpenMarket. In the other hand, the firm has to spend more money for outsiders. A template would be fine for very small and simple storefronts. There are two options: host it in-house, outsource the hosting. If you choose to build from scratch, there will be more skilled staff required. If the staffs are not yet skilful then they will face a long learning curve and the firm will face a delay in entering the market. It is easier and faster to update an in-house site than a out-house one. However, the advantages are that you are building a Web site that does exactly what you intent to do (if everything goes well), and you might apply changes more freely and rapidly. Also, developing a Web site from scratch means you are re-inventing something that other people might already build. The firm may choose to use pre-build templates, such as those provided by BigStep and Yahoo! Stores. When the firm acquire a package, they may choose to whether modify it themselves or hire an additional outsider to do it. Does it worth to build everything from beginning? Will pre-packaged solutions and templates be better choices?The pre-packaged solutions give the firm a chance to get to the market sooner because most of the work has been done. If a technical expert is available then the modification should not be a problem. Most company pay a hosting service provider to host their Web site.

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