Companies these days are resorting to outsourcing analytics to help them make informed decisions, improve customer service, as well as reduce business costs and risks. The amount of data generated by businesses across the globe drives growth. Some of the major consumers of this service are the banking, financial services and insurance sector, which, according to reports, accounts for nearly 33% of market revenue.
Outsourcing Data Analytics
Why do businesses outsource analytic services? One of the reasons would be the lack of in-house capabilities to run analytics initiatives.
The MIT Sloan Management Review shares that “The shortage of analysts – particularly those capable of developing and leading world-class teams that can enable a company to create a competitive advantage from its data and analytics – is driving organizations to consider outsourcing their analytics activities.”
However, the question businesses should ask themselves before they hire third party services is that how critical is the data to be analyzed? If it contains information imperative to the company’s survival, then it should be kept and handled within the enterprise.
If you do consider outsourcing, open up with discretion, you would want to provide them access, but also do this securely, as to not end up in the hands of competitors. If it does, however, make sure you know what indemnities you have.
The Future of Data Analytics Outsourcing
The market is expected to grow by 29.1% by 2020, generating $5.9 billion in revenues. Companies as of late are outsourcing analytics to business process organizations (BPOs), as this is an increasingly growing industry in the country.
Hiring external help is one way to make data management a lot easier. Plus, it also gives you the opportunity to stay ahead of your competitors. Be wary, though, that you do not entrust everything to outsourced help and make sure that you have people in-house to assist you, as well.