Companies are increasingly outsourcing their Web hosting services and have opted to pressure their current host companies to add features and services instead of switching providers, a new survey of 1,000 U.S. businesses found.
Seventy three percent of companies now rely on outside sources for their Web hosting services--a 30 percent increase from last year--according to a report by the market research firm TeleChoice Inc. This increase marks a transition for many companies in their e-business efforts from a basic presence on the Internet to a major player in the e-commerce business, said Ruth Chatterton, principal author of the report.
When first moving to the Internet, companies usually produce a basic online brochure, Chatterton said. Then, as they become more comfortable with the online industry and competition increases, "there is a very
quick trend toward bringing in outside help so they can focus on their own core competencies."
About 62 percent of large businesses choose to outsource their Web hosting services, while more than 90 percent of small companies rely on outside firms, according to the TeleChoice report. Smaller companies tend to concentrate on price, speed of repair and technical support when making Web hosting decisions. Large companies, on the other hand, focus more on security, service options and advanced services.
Users that host their own Web sites-usually individuals or small firms-are for the most part more satisfied with the cost and value of their hosting efforts than those who use outside hosting services, said
Chatterton.
The report also found that companies involved in the healthcare and government industries were the least satisfied with their Web hosting services. Chatterton said that this is because these industries have not
been in the e-commerce race for long.