May 23, 2013

In-sourcing vs. Outsourcing

A lot of talk has surfaced in the last few months over the topic of In-sourcing vs. Outsourcing.  I guess this could be an expected outcome of Apol buying Aptimus.  Clearly there are advantages of both, here are some of them:

Outsourcing:

  • Leveraging a firm who is experienced, and leveraging their power with the vendors for pricing & placement.
  • Leveraging the firms experience and knowledge of the broader vendor universe with regards to conversion rates, volume, sourcing & price.
  • Leveraging the firms knowledgebase of conversion rates from other schools with similar vendors to determine how competitive you are with your leads. Leveraging multiple schools analytics vs. your own.
  • Limit internal headcount based on outsourced components.
  • Better chance of identifying lead fraud.
  • Utilizing the firm as a means of stability, reduces risk due to internal turnover issues.

In-sourcing:

  • Capitalizing on owning the market intelligence of sourcing, conversions & pricing
  • No paying a mark-up on lead spend/agency fees
  • Stronger direct relationships with lead sources
  • Complete control of marketing…good & bad
  • Owning of own marketing analytics

There are more for both, and if you have some feel free to share and we will add them.  I think it also comes down to size of school/system as well as growth objectives.  Often smaller schools tend to be to small to outsource while many of the largest reach a point where it becomes too costly.  The good news is that technology has been advancing and there are more options today than in years past.

An example of a professional firm that provides these types of services:

visit www.edufficient.com

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