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Midphase National Survey Finds Recession Affecting Nearly 60% of Small to Medium Sized Online Businesses

August 25, 2009 by · Comments Off on Midphase National Survey Finds Recession Affecting Nearly 60% of Small to Medium Sized Online Businesses 

MidPhaseWeb Host ServicesCHICAGO – Midphase, Inc, a premier provider of turnkey web hosting solutions, found that nearly 60% of their SMB customers had been affected by the recession with 58% indicating a revenue drop from between 5% to over 60%. One of the main reasons cited by 46% of this group is the challenge in finding new customers.

Midphase surveyed over 3,000 of their customers and currently hosts over 120,000 websites. “We feel this is a true cross section of American Internet users,” says Marc Bollinger, Midphase General Manager.

The statistics indicate that many people are dealing with the recession by creating new revenue streams specifically through online businesses. The Midphase survey found that 60% of respondents are supplementing their existing income with a web presence. This fact is supporting by the finding that 47.7% claim that their web presence will represent less than 10% of their income.

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UK2 Group moves all support functions in-house

March 5, 2009 by · Comments Off on UK2 Group moves all support functions in-house 

Webmaster NewsLondon – Leading web hosting organisation UK2 Group have just announced plans to move all support functions in-house, thereby bucking the popular trend of out-sourcing. As part of UK2 Group’s strategy to leverage the best from their thirteen brands, they have been able to build a world class, in-house support function which can now be rolled out across the UK2 Group.

Outsourcing support to less expensive countries has become very popular in many industries, not just hosting, as the promises of high quality service levels at low prices is extremely attractive. In addition, along with cost reductions other benefits of out-sourcing can include greater flexibility and economies of scale. However, there are serious risks namely in the reduction of quality of service, loss of control of a key part of the business and decline in knowledge levels within the business. Also the expected cost reductions may not actually materialize, especially if poor service levels result in increased and repeat customer enquiries and customer losses. Read more

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