Outsourcing data analysis: Advantages and Disadvantages
Organizations are turning to ISPs to gain a better understanding of their data. Let’s list the benefits and risks of outsourcing data analysis.
Companies outsource all types of IT and business functions, including strategic ones. The field of data analytics, one of the most competitive technological areas, is being outsourced.
For outsourcing, a service provider is hired to analyze the data provided to him. Research shows that the demand for this type of service is on the rise.
It makes sense to outsource data analysis only for certain types of analytics. Along with the potential benefits, there are risks. Let us list what you can lose and what you can win by outsourcing data analysis.
Before you understand what the advantages of this type of activity are, you need to understand the very concept of “outsourcing”. This is the performance of services by a third-party organization. They are not related to the main direction of the company. Outsource big data allows businesses to reduce the cost of non-essential work and related tax costs.
Benefit: Access to the skills you need
It is no secret that many IT specialties are in short supply today. This applies fully to cloud computing, advanced analytics, big data, data lakes, and data science. Outsourcing companies can mitigate the resulting deficit by offering clients their services.
Organizations need cloud management platforms to create big data lakes. It helps to manage data downloads, and transfer data from individual consoles. But if a team that does not have the appropriate skills takes on such work, then complications arise. By outsourcing, organizations gain access to the data science consulting services they need.
Benefit: Industry Experience
Some data analysis functions are general-purpose. While others are sector-specific, such as the healthcare or financial services industry. Outsourcing partner with deep industry knowledge is a serious competitive advantage.
The cost of outsourcing services can be a problem. Especially in large organizations with complex operating models.
Benefit: Easy scalability and fast path to mature analysis
In addition to the ability to acquire data analysis skills, outsourcing services help to build an analytic infrastructure. It is difficult or impossible to build on its own.
Another factor may be the desire to reduce costs when purchasing analytical services. Since their providers often use the analytical resources they already have. These are frameworks and accelerators.
Any outsource big data involves the abandonment of something that is performed in-house. And sometimes even from your own employees. When outsourcing analysis, one of the biggest sacrifices can be analytical models.
Benefit: Continuously meeting legal data protection requirements
The volume of data grows in the process of managing and analyzing it. The organization runs the risk of not complying with regulatory requirements set by regulators.
The difference between governance and security policies in different data sources creates difficulties. it’s related to moving to auditing in data lakes.
Benefit: Increase the potential value of your data
Data is the new currency for business. And there is great potential in analyzing it to gain competitive advantage.
A possible benefit of outsourcing is the ability to strengthen the data market and build alternative business models. An independent third party manages the storage of multiple organizations’ data. It promotes the concept of an anonymous and secure data exchange platform.