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Every business has to determine whether they should perform a service themselves in-house or outsource that particular service to an outside vendor. Marketing and response management are just two of the services that can be performed either in-house or outsourced to a vendor.

The following graph shows the relationship between company size and potential need for outsourcing. As a company reaches 1,000-10,000 employees, the potential need for outsourcing drops dramatically. In organizations of this size, sufficient resources can usually be found in-house to perform a function, as well as having resources to handle backup coverage.

At first glance, it seems counterintuitive for a company to outsource highly-visible or important services. Once you look at all the things a company must do to handle a service in-house (and keep it running continuously), it becomes more evident why many companies choose outsourcing versus operating a service in-house. If a service is provided in-house, a company must:

  • Locate a qualified employee
  • Train the employee
  • Pay employee wages and benefits
  • Provide the employee a physical workspace
  • Provide the required technology items (computer, phone, Internet access, copier, fax machine, etc.)
  • Pay telecommunications costs (phone line, inbound toll-free calls) 

Some services, for example Inbound Response Management, require continuous coverage and dedicated resource. This is required because responses are generated on a random basis by outside forces, rather than on an internal, controlled schedule. Services of this type would also require coverage during absences of the primary resource, such as:

  • Scheduled vacations
  • Unscheduled sick days
  • Unscheduled Family leave
  • Maternity leave

With outsourcing, the company must only:

  • Locate a reliable and high-quality vendor
  • Pay the vendor for the services provided

Click here to view a sample cost comparison of In-house versus Outsourcing for Inbound Response Management.