Jan. 2005, Digial Queue Newsletter—Most print shops have probably had to make this decision at some point: To outsource or not to outsource. Outsourcing can include specific jobs, a category of jobs or even creative work. There are benefits and downsides to both outsourcing and bringing work in-house, it depends on the shop and the situation.

The Pros
There are several major pros when it comes to outsourcing, according to Ryan Fosegan, Durst Images Technology US LLC, including:

- A print shop can offer a larger variety of services

- A shop can test the waters to see if the demand for a particular service is there.

Outsourcing means that you can market services to your client base that you don't have the current capability to produce yourself. It allows you to become a one-stop shop. It allows you to test demand for a market you may be considering entering. Thinking about buying a flatbed? Outsourcing to a company that already has one will allow you to offer the services and see what kind of response you get.

Jim Beach, of Beach & Associates, says, "It's so much easier for that print shop [who outsources] to keep their customers coming back because they, who are in the business in the first place, can find quality, fast turn-around and a fair price easier and faster, for a particular application, than what most customers want to spend time going else where and looking for."

The Cons
But outsourcing has its downside too. Fosegan listed these as the top considerations:

- A shop is standing behind someone else's work - can you rely on them to meet deadlines and produce quality work?

- Turn-around times will generally be longer

- There is little to no direct quality-control

"Outsourcing can burn you if you don't work with reputable firms," said Beach. "Poor quality workmanship, late delivery dates, suppliers that don't stand behind their product and a customer service team that doesn't serve your needs."

The Choice
Overall, there are a few things to keep in mind before making this decision:

- Can you justify the cost? If you can't mark up the job enough to cover the costs of outsourcing and the volume is there, you may be better off bringing the work in-house. On the other hand, if it is a small portion of the market you serve demanding that service, the cost of the machine might not be worth it.

- Talk to users. According to Fosegan, this is an important step before making the decision. Talk to users of the technology you are considering. Talk to people who have had both success with purchasing equipment, and those who failed with it. This will give you some good insight into what situations might be better suited to outsourcing.

"Customer testimonials and referrals are in abundance - ask for customer names who your potential supplier has worked with and make the calls. You'll learn so much more," said Beach.

- Take the time to analyze. Look at your market and clients. What kind of demand is there? Could your current base support a new market or technology? Or would you have to branch out to new areas? Is this a direction you want to move in? Know the answers to these questions before you make the decision.

Overall, either decision can be a good move for any print shop. Take a hard look at your current business and the areas you want to focus on growing. This will give you a good start on deciding what to outsource and what to bring in-house.

"Find [your] niche: what do most of [your] customers want. Build [your] business servicing the customer's needs with a good creative product, outstanding customer service and fair margin of profit," Beach said.