The major issues surrounding the decision to build and/or host an E-commerce site or to
outsource some aspects of Web development
Outsourcing the hosting of an E-commerce site hosting and some aspects of web
development may be good because most of the companies do not have the required resources
that would help them to develop and host the websites in-house (Gupta, 2014). However,
these poses some threats to the company considering the sensitive nature of the e-commerce
websites. The biggest challenge, in this case, is security meaning that the company has to put
measures in place that will make sure that the security of the site is guaranteed even though
they have to outsource site development. In-house development means that the company has
to have the necessary staff, hardware, and software to design the websites and host them.
Most of the time, it is not economically feasible for a company to host a website on its own
hence many companies have to outsource hosting services. This paper assesses the challenges
that are faced in outsourcing the hosting and web development services for e-commerce
websites (Louw and Nieuwenhuizen, 2020).
Advantages of outsourcing web design and web hosting services
There are some advantages that are associated with the outsourcing of web development and
web hosting services. First of all, outsourcing gives the company professional help from
highly skilled people who will help the company achieve high-quality web development and
web hosting services. By bringing the outsources e-commerce solutions to the company, you
will be getting the services of highly skilled and highly experienced individuals who work on
websites on a day to day basis. They are, therefore, well versed with the market trends, and
they are aware of what the company is supposed to do to be successful in the e-commerce
sector. An e-commerce expert knows what you are supposed to do to take the business to the
IN-HOUSE VS OUTSOURCING IN E-COMMERCE 3
next level. They also know what the company needs to do for their website to rank high in the
search engines hence boosting the sales significantly (Hiles and Hon, 2016).
The other advantage of outsourcing e-commerce web development and web hosting services
is that it saves time. By outsourcing, it means that the company has put the task of web
development in the hands of the professionals who are aware of what is expected to them and
what a business needs. The management and the staff can, therefore, focus on the other tasks
within the company putting in mind that the web design and web hosting of the website for
the company are in good hands. The company will, therefore, save more time because they
will not need to take more time to come up with a solution. All that is required is to give
instructions and wait for the results from the web developer. The developers are aware of
what the company needs to be successful in e-commerce, and they will capitalize on the
knowledge for the benefit of the company (Pentina and Hasty, 2009).
Outsourced web development and web hosting solutions ensure that the security of the site is
enhanced. Unlike the in-house solutions, the outsourced solutions come with security
certificates that will protect the company from any insecurities hence protecting against
insecurity related losses. The outsourced solutions also come with the fraud protection teams
that are concerned with keeping the companies information safe. The outsourced web
developers and web-hosts hare aware of the crime trends in the market; hence they will play
an essential role in protecting a given company from the criminal elements (Yoon, Choi and
The other important issue that is associated with outsourcing web development and web
hosting services is that it exposes the company to specialized equipment that will improve the
quality of the services that the company receives. Most of the clients are keen on the variety
of websites; hence it is essential to make sure that the aesthetic value of the website is
IN-HOUSE VS OUTSOURCING IN E-COMMERCE 4
guaranteed. Outsourcing will enable the company to take advantage of the skills possessed
by the experienced developers to ensure that the quality of the site is secured. Outsourcing
will allow the company to have access to equipment that they cannot afford (Pentina and
Several disadvantages are associated with hosting web design services. First of all, it is
essential to note that the demand for developers has increased in the recent past, meaning that
the available developers have a lot of work in their trays. It is, therefore, likely they will miss
on important deadlines hence affect the company significantly. It is also a great struggle to
find a developer that will meet all your needs. Most of the elite developers always have many
tasks that make them busy all most of the time. The other challenge is getting a developer
that you can trust. Before deciding on which developer to outsource, it is essential for the
company to check their reviews, testimonials as well as the other things that will give an idea
of whether the developer is competent enough to hire or not (Pentina and Hasty, 2009).
It is also important to note that the cost of outsourcing may be very high, especially when the
company is looking for the services of experienced developers. A company needs to share its
concerns with the technology provider that they are seeking to hire as a way of preventing
over-expenditure. It is crucial to engage them because they could develop a good site at an
affordable price when someone talks to them (Pentina and Hasty, 2009).
Outsourcing is essential because it exposes a company to the best technology in the market.
However, it is vital to address critical concerns if you have to get the best services. It is,
therefore, necessary to make the required judgments before making any decision on the
solution to take. It is important to note that outsourcing may work better for some companies
IN-HOUSE VS OUTSOURCING IN E-COMMERCE 5
and not others. A company needs to assess its resources before making a decision. The
decision that the management of a firm takes will determine if it will be a success in e-
commerce or a failure. It is, therefore, essential to conducting objective judgment.
Yoon, D., Choi, S.M. and Sohn, D., 2008. Building customer relationships in an electronic
age: The role of interactivity of E‐commerce Web sites. Psychology & Marketing, 25(7),
Pentina, I. and Hasty, R.W., 2009. Effects of multichannel coordination and e-commerce
outsourcing on online retail performance. Journal of marketing channels, 16(4), pp.359-374.
Hiles, A. and Hon, F.B.C.I., 2016. E-Business Service Level Agreements: Strategies for
Service Providers, E-Commerce and Outsourcing. Rothstein Publishing.
Louw, C. and Nieuwenhuizen, C., 2020. Digitalization strategies for SMEs: A cost vs. skill
approach for website development. African Journal of Science, Technology, Innovation and
Development, 12(2), pp.195-202.
Gupta, A., 2014. E-Commerce: Role of E-commerce in Today's Business. International
Journal of Computing and Corporate Research, 4(1), pp.1-8.