“Without big data analytics, companies are blind and deaf, wandering out onto the web like deer on a freeway.” – Geoffrey Moore, American organizational theorist, management consultant, and author.
Every business may own vast amounts of data that can potentially help them stay competitive and drive growth. It can be information about customer behaviors, tax records, sales figures, marketing expenses, or social media trends.
As a matter of fact, what people know about data is just the tip of the iceberg. And managing and analyzing large volumes of data is a complex task that requires significant resources like time, money, and expertise.
That’s where big data outsourcing comes in handy. By leveraging external expertise and infrastructure, your companies can unlock the full potential of your data without investing heavily in building internal capacity. Not only is it cost-saving, but you can also improve your decision-making capabilities.
Now, sit back, relax, and dig into how big data outsourcing can help your business grow and succeed in today’s increasingly data-driven market.
What Is Big Data Analytics?
Big data refers to large, diverse, and complex sets of data that are too massive to be processed and analyzed using traditional methods. It’s estimated that the big data market will reach $103B by 2027. There are four characteristics of big data, which are high volume, velocity (the speed at which data streams), variety (different types of data from different sources), and veracity (data accuracy). Big data can be collected from various sources, for instance, social media platforms, sensor networks, transaction records, and medical records.
Managing big data has never been easy. The challenge with big data lies in processing and analyzing these large datasets, containing structured and unstructured data to extract hidden patterns, correlations, and other meaningful insights. It would be much more difficult for small businesses.
Therefore, advanced tools and techniques such as machine learning algorithms, statistical models, and predictive modeling are taken advantage of to identify relevant information. The outcome will serve many purposes, improving operational efficiency, developing new products or services, optimizing marketing strategies, enhancing customer experiences, and driving growth.
Pros of Big Data Outsourcing
As mentioned, not every business has enough resources or expertise to tap into data science. The growing acceptance of big data analytics requires an increasing number of big data professionals.
It’s of indispensable necessity to seek help from a third party to capitalize on the data’s value. Outsourcing services offer a massive package of benefits.
#1 Save Cost
Outsourcing big data analytics allows your companies to cut down on internal expenses. These costs include the overheads associated with recruiting, training, and retaining in-house staff, along with purchasing/maintaining hardware and software.
Plus, data labor rates in some countries are much cheaper than in the US or UK nations. It will take you about $100K per year to employ a US data scientist. However, you must pay only $10K yearly for a data scientist with the same experience level in other countries. Besides, retaining local experts proves difficult as they may be allured and hunted by tech giants.
#2 Increase Flexibility
Big data processing can be highly unpredictable. The workloads may fluctuate widely over time, or unexpected spikes in demand may require additional resources at short notice. The external team will guarantee to enhance data-distributed systems and channels via their skilled performances.
Outsourcing allows businesses to scale up or down quickly and efficiently without having to worry about investing in unnecessary infrastructure or personnel. All you need to do is follow up when necessary and ensure a healthy and secure data infrastructure.
#3 Access to Expertise
Many businesses lack the specialized talent needed for effective big data analysis and processing. In the meanwhile, outsourcing provides easy access to experienced professionals who possess the necessary skills, knowledge, and tools required.
What’s more, the broader and more diverse talent pool you have, the more innovative solution they can come up with. They are experts in almost every area that can work on any of your projects at the highest standards.
#4 Focus on Core Business Activities
The analysis and utilization of data always play a vital role in any business. If your companies have to invest time and resources managing or analyzing large datasets, it can impede the ability to concentrate on essential business functions.
Once leaving the data management to professionals, you can free up the company’s internal resources and will have more time for pressing strategic projects aligned with core competencies.
#5 Experience Evolving Big Data Technology
Undertaking big data projects necessitates substantial investments and effective change management strategies that consider complex decisions, available tools in the market, the rapid pace of innovation, as well as strategic, technological, and operational changes.
By partnering with an outsourced provider, businesses gain access to cutting-edge technologies without needing to invest significant amounts of capital into research & development yourself. They will take care of navigating these investment decisions and let you know the change management efforts required.
Cons of Big Data Outsourcing
“Every rose has its thorns.” So does big data outsourcing. Despite its many benefits, big data outsourcing also comes with a few disadvantages that businesses should be aware of before jumping in.
#1 Security Risks
Outsourcing big data handling and processing forces you to expose sensitive business information to third-party vendors. Still, they may not have the same level of security protocols as your own organization. Consequently, you may risk your proprietary information to unauthorized access, theft, or corruption.
It’s crucial for you to collaborate with the data privacy officer to ensure that any sharing of data does not breach recent privacy regulations. On top of that, you need to spend time researching and picking providers with strong tracking records.
#2 Communication Challenges
As a matter of fact, most outsourcing partners are located offshore. That leads to communication issues arising due to time zone differences, language barriers, and also cultural differences. Both party won’t communicate openly and honestly, which results in misinterpretation or delay in delivering critical insights.
#3 Hidden Costs
As mentioned, outsourcing can reduce overhead costs associated with maintaining an in-house analytics team. Bear in mind that some providers may charge extra fees for additional services like support or customization, which can add up over time.
You should make it clear at the beginning about the total cost you’ll pay as well as possible expanded fees.
#4 Quality Control Issues
Having external teams work on your big data projects means that quality control standards become more difficult to maintain.
You’re unable to deal with the data directly, from accessing to managing and analyzing it. If there is a chance that the outsourced team commits an error or fails to comply with the instruction, you may face negative consequences.
Factors to Consider for Big Data Outsourcing
The rise of big data analytics also results in an increased demand for data scientists. There are a lot of data analytics outsourcing providers out there. However, choosing the right one for your business is a painless process.
There are several factors that you should consider before picking an external data team.
The first thing is the provider’s level of expertise. You want them to have experience working with your industry and understanding your specific business needs. Look for references or case studies that demonstrate their ability to deliver relevant results.
Next, big data requires advanced tech solutions such as servers, storage devices, software applications, etc. Make sure that the provider employs state-of-the-art tools and equipment so that they can effectively manage your project.
Data security is something you must pay attention to when deciding on a big data partner. Anytime you entrust someone else with sensitive company information, make certain that they maintain tight security protocols. Ask potential providers about their approach to securing confidential organizational information.
Prior to signing the contract, carefully look at the pricing model. Evaluate if their cost structure aligns with your budgetary constraints without comprising quality service delivery expectations.
Neurond Big Data Analytics Services
With a team of members with over 15 years of experience in creating state-of-the-art technical solutions, Neurond is confident to become your data analytics outsourcing partner. Our specialized virtual assistants are available to handle outsourced tasks for both brief and extended ventures efficiently.
Our service doesn’t just stop at analyzing data. We also provide reliable Data Science consultation to maximize your company’s analytic abilities.
By implementing data-driven strategies in the early stages, we can help you evade the challenges of accessing overwhelming data in the long run. Our extensive technical expertise is at your disposal throughout the consulting, measuring, monitoring, and modeling process to enhance your company’s efficiency without exceeding your budget.
Ready to Hand on Your Big Data Analytics?
Big data analytics has become an integral part of businesses today. Outsourcing your big data needs can advantage your organization in numerous ways, from saving costs to creating higher productivity levels.
Nevertheless, it’s essential to consider advantages and potential drawbacks, along with factors, when choosing a provider carefully. By doing so, you can ensure that you are making informed decisions that will contribute to the growth and success of your business in the long term. With careful consideration and planning, outsourcing your big data analytics needs could be a game-changer for your company’s future success.
Contact us to kickstart big data analytic capabilities now!