Would Somebody Please Turn Up The Heat

ACCC IT industry crack down

There has been some heat in the IT industry lately, stemming from the ACCC’s move to crack down on digital companies that are taking advantage of consumers.

The ACCC has recently been in legal battles with companies such as Google, Apple, Facebook and now HP, for a range of issues from misleading advertising and advice. This news around the ACCC and the heavy IT hitters got me thinking; is this just another case of ‘big business’ needing to be reigned in and given some limits, or is this symptomatic of the tech industry as a whole?

With this in mind, over the past week I consciously took an objective ‘outsider’ view of us and competitors as purveyors of the digital industry. I think it’s fair to say that with the jargon and lack of standardised quoting, we’ve earned a reputation as the modern day mechanics (no offence to any mechanics out there). Historically, this is inherent with industries that rely on their own unique language and intricate knowledge distinct from common language and knowledge as tools for inclusion by exclusion within their ‘community’ or industry.

One common gripe that I often hear about the IT industry is in regards to the consistency and quality of products and services. In a lot of industries, such as airlines and pharmaceuticals, the government develops regulated pricing and advertising guidelines to help control the behaviour of that industry, but pricing in the IT industry is very difficult to regulate. The speed at which technology develops, is far greater than the speed at which legislation can be passed (as we saw with the Optus AFL streaming earlier this year). Added to this is the seemingly unlimited combinations of usage, access to content, outsourcing models, software for development and maintenance agreements which create inherently challenging product and service pricing structures for lay people to navigate. This challenge provides the opportunity for many companies to scam consumers and prey on the lack of regulation.

I act as a confidant for some of my non-client marketing contacts who often have questions about the digital space, and in the past week alone I have heard two examples of outrageous quotes they’ve been given. One was for a single webform for a Government client, with 12 months maintenance for a staggering $1.1m, the other an 8 page website for $85K. Viewed from an outsider’s perspective, this sort of costing is terrifying. As an insider, it’s mind-boggling that these sort of figures (for relatively simple requirements) are not only being quoted, but actually being paid!

The ACCC are looking closely at our industry and I’m glad they are. There are companies out there gouging prices on products and services that should be simple and cost effective solutions. This is creating a huge amount of mistrust in our industry. To avoid being one of the luddites who are taken for a ride, there are some simple things you can do to get reasonable and competitive pricing for any of your digital needs:

• Just like your dad used to ‘know a guy’ when he was getting his car serviced, find a source you trust that is digital savvy and can act as a third party to advise on getting value for money.
• Prepare a comprehensive, detailed brief, ensure you are specific in what your requirements are. You can use your digital contact for help with this.
• Do your research and get at least two independent quotes, with reference, but make sure you’re comparing apples with apples.
• Where possible, provide diagrams or wireframes so the prospective tenderers know exactly what you want your digital project to look like.
• Get suppliers to break down projects by the hour and the costs per role, per hour so there is 100% transparency on what you are getting.

If you follow these steps, you will be able to confidently trust the expertise you’re getting in the chosen provider, rather than over-paying and second guessing your provider.