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Outsourcing is obviously a good solution for companies that lack developers. The only decision to be made in this situation is whether to partner with an outsourcing firm or to hire individual contractors. An organization without developers probably won't have the means to shell out the money to build a corporate-class development environment with hired contractors. These firms can, and should, partner with an outsourcer.

Most companies do have an internal development organization, yet going with an outsourcer makes sense anyway. Outsourcing may be the best option when new products are required and the organization does not have the capacity -- intellectually or physically -- to complete the project in the required time frame. Outsourcing also can be the best approach when in-house developers have the business knowledge, but not the technical knowledge, to build a successful B2C site. Rather than spending the time and money for further training and education, many companies turn to an outsourcer.

Most of the tactical reasons cited for choosing outsourcing in this situation are centered around the obvious financial advantages. It comes down to cost, cost, cost. There are two general components to this bottom line: the one-time costs of implementation and deployment and the ongoing costs of maintenance.

>> One-Time Costs: Implementation, software licenses, equipment, back office.

>> Ongoing Costs: Operational staff, hosting and bandwidth, software and hardware upgrades, site management.

Outsourcing providers are quick to point out that while their initial development costs are generally higher than that of a custom-developed solution -- mainly because of salary differences -- the ongoing costs as well as licensing and equipment costs are lower in the long term. With the collapse of the dot-com market, the cost of outsourced development has been driven down to a level that is nearly even with that of custom development. But even if implementation by an outsourcer is more expensive, ROI calculations confirm that, because an outsourced solution has a faster time to market, those costs are recovered quickly (see "Before You Outsource, Do the Math").

For a company that chooses a framework solution for its B2C implementation, the costs are higher. The in-house costs -- including new hardware and software infrastructure for development, deployment and operational management and monitoring software and staff -- should be absorbed over time by the revenue generated by your B2C site. If this is not the plan, by all means outsource. But if it is the plan -- even for the future -- you should invest now in the people and knowledge necessary to expand and maintain the electronic side of your business.

Most organizations would never consider outsourcing mission-critical legacy systems, so why consider outsourcing what is now or will be mission-critical e-business systems?

Because times change. While not outsourcing mission-critical legacy systems makes sense, it may make sense for your company to outsource its B2C business -- even if the site is critical to the success of your business. In the past, the amount of revenue generated by most B2C sites hasn't been staggering, especially when you consider overall revenue. The predictions are that revenue from e-business will continue to grow. Some of that revenue should be yours, and you'll be missing the boat if you don't treat the electronic side of your business as a part of your total business strategy.

If your company is more traditional and perceives all mission-critical functions as the purview of its internal development staff, your path is clear. Implementation of your B2C site will likely stay in-house. If possible, you should add to your staff or use consultants to decrease the time to market and take advantage of current technologies if your staff isn't up to speed. If you take this route, make sure not only that your current staff is involved in the product specification, but also that the system knowledge is transferred back to the staff before the consultants leave. This method gives you fast time to market and gives your in-house staff the chance to learn new skills.

If your company wants to get its B2C site up quickly but always takes the more frugal approach, choose a total solution outsourcing partner. Hand over responsibility for the entire process with the stipulation that you maintain a staff position responsible for management of the relationship as well as management of content for the site.

No matter who develops and maintains your B2C site, your company is responsible if a transaction goes awry. The customer doesn't care who maintains your site. He or she cares only that the item ordered is delivered as promised. You'll need to be choosy in picking a partner for this type of initiative -- especially in today's market.

We examined several top total-solution outsourcing providers and what they have to offer. We also give tips on what to look for when choosing an outsourcing provider, as well as what is absolutely necessary for a successful outsourcing project.