As product producers seek to cut costs and minimize overhead, a growing number are outsourcing design technology services. This trend is being facilitated by a service-oriented economy in which the Internet makes collaboration, communication and delivery as easy as a click of the mouse.

“Outsourcing,” which can be defined as projects handled by specialists who are not part of a company’s permanent staff, provides for services that can be performed either offsite or in-house. These services are being offered by independent designers, service bureaus, and freelance agencies who are helping companies manage their financial overhead in uncertain economic times, while still allowing them to compete with rapid market demands through technology applications.

At Your Service – Bureaus

Service bureaus have become a popular resource for CAD related projects to many companies. Many service bureaus offer a turn-key solution for complete design development, from original artwork creation through to digital textile samples and photographic presentations. Some, such as Design Works International and The Style Council, offer hand painted artwork in combination with digital services, while others such as Rothtec Imaging, Showbran Graphics, CAD Fabulous and New Wave Textiles focus primarily on digital services.

A number of service bureaus have cropped up in recent years to provide digital textile printing services for sampling and short run production. They are purchasing the latest in CAD systems and digital textile printers to offer state of the art output. In many cases, clients use these services instead of purchasing and maintaining the equipment in their own studios.

Lenny Kietz, President of Creative Vinyl, uses Rothtec Imaging to create digital samples for the juvenile furniture industry. According to Kietz, “ We have our own CAD systems, but have enough to do creating original prints. Using Rothtec helps us present our designs on fabric for market, but still allows us to focus on what we do best, which is design.” Rothtec offers the advantage of being fully integrated with engraving services, so that work prepared for digital cloth can easily transition to screens for traditional printing production. Operations Manager Jamie Bohack says that their tie-in with engraving helps them create digital prints that accurately simulate traditional production cloth. “Many of our customers really want their digital samples to look like it will in production, but don’t understand the process to do it themselves. We help them get there,” states Bohack.

Service bureaus also receive overflow design projects from companies who have CAD or digital printing systems in-house but need to outsource during peak development seasons. Often the cost of sending overflow projects out is less expensive than acquiring additional equipment and staff. The cost for projects sent to service bureaus vary. Art development can range from $20 to $100 per color, digital fabric prints range from $100 to $250 per yard, and texture mappings (photo simulations) range from $300-800 per photo. Pricing really depends on the source of the design (is it digital or manual), the complexity of the work needed (is it going to engraving or just used for presentation), and how quickly the job must be done (rush projects may cost more).

While these services may not eliminate the cost of engravings for final print production, they do add value to the design and sales process. Digital sample presentations provide a low-risk alternative to traditional sampling, and can help insure a sale before further expenditures are made. According to Tal Vinder, General Manager of Showbran Graphics, “Through simulated product photos (texture mapping) and digital fabric samples, we help our customers present their product ideas quickly and thoroughly, so that they have more likelihood of getting a sale. If the design is sold, it can go to engraving as a digital file from our studio, thus eliminating redundancies and speeding up the production process.” Kietz agrees that while using a service bureau doesn’t save him money in sample yardage, it improves sales by enabling him to show prototypes to his buyers who are more comfortable purchasing from a product sample.

In the service business, timing is everything. Bohack states, “One to two weeks turnaround is considered a long time in the service world. And, your next job is your thank you.” To that end, many service bureaus operate 24 hours, especially before market. Rothtec and Showbran service local companies within New York as well as customers around the nation. On occasion they will get files electronically (by email) to print, but usually long distance projects are handled through overnight courier for project instructions and approvals. According to Vinder, “some of our customers still don’t have email or don’t have the bandwidth to transfer large files, so we still rely heavily on Fedex. Also, our customers want to see a sample of what their digital fabric will look like before we print yardage.” Recognizing the need for local digital services in the Southeast, Chris Ponte formed New Wave Textiles in Rock Hill, SC over a year ago. Located in the backyard of many large textile mills, Ponte can service these clients quickly and consult on projects in person. “It is good to go to them and look at an approval sample in their light, so that we know how to change a color if we need to,” states Ponte. Maya Roth of CAD Fabulous, a West coast digital design service studio states "Being in close proximity to local LA printers has been a big advantage for us. We can control a customer's project from art to digital sampling and ultimately to mass production."

Neil Breslau of Design Works discussing a client project with an Application Specialist photo courtesy of Nedgraphics

All of the service bureaus agree that expertise is an advantage to using them, whether in design or in an understanding of production. Neil Breslau, owner of Design Works International in New York City, notes “we have a very high standard when it comes to what we will send out to a client. If it’s not good enough for us, it’s not good enough for them. Therefore, we must employ the best talent possible to maintain these standards.” Talent aside, Vinder admits that not being in-house can have its disadvantages, where communication can break down and it may take days to an answer when a client is not available. “It helps when clients who are sending jobs to us are organized and provide thorough instructions. Beyond that, we try to proactively troubleshoot as much as possible,” states Vinder.

Temporary Staffing: The Freelance Connection

Sometimes its better to have a project completed in-house, where one-on-one contact provides better communication. For companies who are low in human resources, freelancers can enhance the work force during busy periods or offer outside expertise when needed. While companies have the option to hire freelancers through their own contacts, many companies are now using agencies that specialize in the fashion industry to help source a variety of freelance needs. Agencies provide a one-stop-shop for clients because they have a substantial database of contacts and can do the legwork in finding talent. Often they can turn around the request for freelance help in one hour to one day, fulfilling between 400-500 freelance requests per month.

Technology skills are an important part of what clients look for in freelancers. According to Sheilah Hogan, senior vice president of 24 Seven, Inc. a staffing agency located in New York City, “Technology is taking over 80% of job functions, and most freelance requests require some sort of technology skill.” To meet the demand for more technology-skilled labor, 24 Seven started a program six months ago to train freelancers in industry-specific software. They have partnered with companies such as Gerber, Lectra, Nedgraphics, Colour Matters and KaratCAD to offer training in areas such as computer aided design (CAD) and product data management (PDM). Hogan states, “It took a long time for the apparel industry to catch on to technology, but now that it has, there is a shortage of people with strong skills in that area. We don’t only find skilled designers, we grow them.” Anne Maxfield, President of Project Solvers Inc. in New York City agrees, and her agency has started training candidates on Gerber’s Web PDM. Dwayne Resnick, Managing Director of Design at J. Crew and a client of 24 Seven notes, “Technology proficiency is a must-have for us when hiring freelancers, even more than creativity.”

The cost per hour to hire a freelancer through an agency is anywhere from $20 to $150 per hour, depending on the type of job and skill level needed. The rate includes a fee for the freelancer, a fee for the agency, billing, and tax responsibilities. Freelancers are put on the agency’s payroll and become W-4 employees, which complies with IRS rules and relieves clients of this burden. For short term staffing requirements, hiring a freelancer has financial benefits because there is no overhead involved for health or retirement plans, which can average an additional 30% of an employee’s salary.

Freelancers benefit companies and permanent staff by offering additional support during busy periods. “The beauty of hiring a freelancer is that they come in and can do the work in a crunch. We use them when we have open positions that we can’t fill right away, or when we have deadlines that are tough to meet with our current staff capacity”, states Resnick. Hiring freelancers can have its drawbacks too, since these part-timers aren’t always equipped with inside company knowledge and “their pick-up time is not as quick as existing employees, “ states Hogan. Hogan recommends that clients have a realistic understanding of how much time can be given to supervising a freelancer before hiring them.

Agencies receive 200 to 400 resumes per week on average, which they sift through for skill level and experience. According to Project Solver’s Maxfield, “We make an effort to really get to know each candidate in what we call an ‘innerview". We ask them what kind of companies they really want to work with and try to match them with appropriate clients.” One of the biggest savings for a client using an agency is that they do all of the legwork of resume gathering and interviewing. According to 24 Seven’s Hogan, “By helping our clients find people, we take the search process off their plate and enable them to focus on what they do best. This ultimately saves them time and money. We screen applicants first, so that the freelancers our clients meet are a good fit for the job.”

The freelance agencies who cater to the fashion business are generally located in the heart of the garment center of New York City, where they service the mid to larger players in apparel and textiles. On occasion they will send freelancers to other regions of the U.S., Europe, or Asia, when the client requires a special talent for a project and is willing to pay travel expenses. To service these clients better, 24 Seven is investigating opening offices in these regions. Both 24 Seven and Project Solvers find using the Internet a benefit to supplying a global market.

The Individual Freelancer

Being a freelancer has its advantages and disadvantages. Freelancer Robin Nelson made a list of pros and cons to weigh the options before becoming an independent contractor. According to Nelson, “I like the fact that I can choose projects that fit my schedule. The garment industry works long hours, which doesn’t suit my lifestyle at this time. Also, the pay is better when you factor in overtime, and I am always gaining new knowledge by working with different companies.” Working through an agency has its benefits too, because they payroll freelancers and offer weekly paychecks. Many agencies offer direct deposit, health benefits and retirement plans, not to mention technology training. Nelson, who books through 24 Seven, recommends working through an agency because, “they only work with good, reputable and reliable companies. This guarantees you aren’t taken advantage of.”

Freelancing has its downside too. There is no guarantee of work, and therefore less stability than a full-time job offers. Nelson cautions that freelancers must be good financial planners, and also must be up for constantly marketing themselves, whether they work through an agency or not. “Also on the downside is the fact that you are not always in the loop on company activities when you freelance, which means you may not know the larger scope of a project in order to make your own decisions. This can be frustrating,” states Nelson.

So is freelancing for everyone? Not necessarily. “There is a certain comfort level with the market and the industry that needs to be established before an individual can strike out on his or her own as an independent contractor,” states Nelson. “There are so many fundamental skills you learn on the job as a full-time employee, that you might never pick up on your own as a freelancer.”

Getting the Most Service from a Service Provider

In these uncertain economic times, it is good to know there are options for getting work done when staff or technology requirements can’t be met in-house. Outsourcing offers immediate resources and low-risk options. However, the cost of these services must be weighed against the longevity and volume of work required in order to be justified. At what point does the cost of outsourcing outweigh the cost of bringing work in-house? Understanding your business and measuring expectations is the key to real savings from using outside services.

Another key to success is in building relationships. Kietz of Creative Vinyl recommends, “it is important to develop relationships with the people who are servicing you. They can do a better job for you when you get to know each other. This goes beyond just business.” Outsourcing services, whether from bureaus or staffing agencies, are often called upon to save the day. These services become an extension of your staff and work best when treated as part of the team.