"innie" or "outie" in-house digital experience vs. outsourcing
DESCRIPTION
Is it better to have an “innie” or an “outie?” For belly buttons the answer is clearly an innie (sorry, but you shouldn’t have picked at it). For your digital customer experience the question is far more difficult to answer. This session will dive into the considerations for deciding whether a digital experience should be handled internally or outsourced, and how to effectively communicate a winning strategy to your boss.TRANSCRIPT
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I N - H O U S E D I G I TA L E X P E R I E N C E V S . O U T S O U R C I N G
or l NNIE O UTIE
. @ trump29
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Did you redesign internally or use an external agency?
Survey of 164 in-house marketers
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This presentation is full of generalizations. Your situation may be entirely different (though it probably isn’t).
“All generalizations are false, including this one.”
–Mark Twain
WARNING
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n idea is always a generalization, and generalization is a property of thinking. To generalize means to think.
-Georg Wilhelm Friedrich Hegel
A
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trengths S
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In-house
• Cost per hour
• Strong business understanding
• Design shepherding
• Ability to change directive
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Outsourced
• Up on trends and innovations
• Built for speed
• Attractive to strong talent
• Not as subject to entrenchment
• Ability to house niche skillsets
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is not which to choose, but how to balance the relationship.
T he real question
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Implementation Shops
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Strategic Partners
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Move toward a single supplier for any one item, on a long-term relationship of loyalty and trust. -W. Edwards Deming
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-W. Edwards Deming
The result of long-term relationships is better and better quality and lower and lower cost.
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hese may make the T decision for you
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C OMPANY SIZE Small companies will benefit from outsourcing, where large companies have an opportunity to hire internal teams.
“All generalizations are false, including this one.”
–Mark Twain
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T EAM AVAILABILITY Digital team demands tend not to be consistent. Even large in-house teams will have overflow.
“All generalizations are false, including this one.”
–Mark Twain
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R ECRUITING APPEAL Many in-house corporations don’t have the cool factor to recruit top talent at reasonable cost.
“We don’t need your money, money, money. We just wanna make the world dance.”
–Jessie J, Millennial
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T URNOVER High turnover eliminates much of the value of having internal teams handling your digital experience.
“All generalizations are false, including this one.”
–Mark Twain
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Fast Good
Cheap
Pay for quality
Low priority
Low quality
Pick two:
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ast F
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• Are there internal politics that will slow internal teams?
• Is there high user or business complexity that will require longer ramp-up time for an external team?
FAST
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heap C
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• Is the need consistent?
• What is more important? Cost per man-hour or cost predictability?
• Is niche expertise required that would require training of internal resources?
C HEAP
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ood G
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• Is the product customer-facing?
• Does your company have the “cool-factor” to attract top talent?
• Is this a long-term initiative (e.g. a product that is intended to continuously evolve)?
G OOD
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Fast Good
Cheap
Pay for quality
Low priority
Low quality
Pick two: Strategic Partner
Hire up Implementation Shops
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Speed to market
Budget
Desire for quality
• This project is the business’s main source of revenue
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HIGH VISIBILITY LOW VISIBLITY
HIG
H U
SER C
OM
PLEXIT
Y
LOW
USER
CO
MPLEX
ITY
STRATEGIC PARTNER
OUTSOURCE IMPLEMENTATION
SHOPS
IN-HOUSE
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Speed to market
Budget
Desire for quality
• We’re behind, and it’s hurting us
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HIGH VISIBILITY LOW VISIBLITY
HIG
H U
SER C
OM
PLEXIT
Y
LOW
USER
CO
MPLEX
ITY
STRATEGIC PARTNER
OUTSOURCE IMPLEMENTATION
SHOPS
IN-HOUSE
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Speed to market
Budget
Desire for quality
• We have moderate turnover and recruiting struggles
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HIGH VISIBILITY LOW VISIBLITY
HIG
H U
SER C
OM
PLEXIT
Y
LOW
USER
CO
MPLEX
ITY
STRATEGIC PARTNER
OUTSOURCE IMPLEMENTATION
SHOPS
IN-HOUSE
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ips for partnerships T
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• Don’t choose… partner
• Also outsource bad news
• Outsource your weaknesses
• Find a partner locally
• Limit the number of partners
• Choose a partner with scale who can implement end-to-end
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• Don’t rely on reports
• Bring content owners in-house
• Core business should be created internally
• Use design reviews and workshops to combat entrenchment
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AKE TRUEMPER J @ trump29 -- truemper@ gmail.com