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Outsourcing

Before the dot-com market collapsed in 2000, many companies had started to provide wireless data services as application service providers. They would take on the work of delivering a Web site's content to the myriad of different devices available on the market.

In the early stages of this market (which we are still in), this strategy may be a very good one. With so few standards in place, and with such widely varying device characteristics available, it is nearly impossible for an in-house group to develop the infrastructure required to handle such diverse interactions with customer devices. This is particularly true in the consumer market, where one has little influence over what devices customers want to use and where no single device stands out as a market share leader. Using a service provider also makes sense simply to gain access to expertise and avoid a large up-front investment for development. In the early stages, expertise is in short supply, and one can buy it more cheaply through the service provider.


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