In every aspect of today, data and information mean an evident advantage, and businesses are leveraging this knowledge by doing their best to glean business insights from the data they collect. Yet, small and medium-sized enterprises (SMEs) face challenges mastering data analytics intricacies.
Around 69% of chief data officer interviewees reported a shortage of data skills within their organizations, and 45% encountered difficulties in data analytics. These constraints on resources and expertise can make data management a challenging task.
That’s where data analytics outsourcing comes into play. This blog delves into outsourcing data analytics for SMEs, revealing how it empowers them with specialized skills and resources for data-driven decisions, enhancing industry competitiveness.
Benefits of Data Analytics Outsourcing for SMEs
Seeing the significant need for more robust data analytics services, we must first understand how it can help SMEs leverage data to improve their business processes. Here’s a detailed list.
• Cost efficiency
Though an in-house team is undoubtedly a feat to accomplish, sometimes it can be more detrimental to your company’s finances. Contact centers in the Philippines typically charge between $8 and $16 per hour for their services, making it the most cost-effective.
Much like data analytics, outsourced project management services cut costs by avoiding the overhead expenses associated with in-house teams, such as statutory benefits, taxes, extra office space, training, and more. This approach saves recruitment time and eliminates the need for additional workforce.
• Access to expertise
Although in-house teams are knowledgeable in data analytics, they require ongoing maintenance, upkeep, and training. Their industry knowledge is limited to your company’s experiences. So, if they encounter a new problem, it might take a while to get past it.
However, with an outsourced data analytics team, you can get industry experts with decades of experience combined in a single organization. Chances are, they’ve dealt with the same problems—the one your in-house team is struggling with—more times than you can count.
As your business evolves, so do your data needs. An outsourcing partner allows you to tailor SME data analytics services effortlessly to match your growth trajectory. With outsourced experts, you avoid the constant struggle of adapting strategies to accommodate growth.
Whether facing seasonal fluctuations or long-term expansion, scaling up or down becomes a seamless process, letting you adapt to market changes and emerging opportunities without constraints and delays.
• Data protection
Businesses have access to a large amount of data, with a significant security risk and responsibility. Unfortunately, in the first quarter of 2023, about six million data records were exposed, highlighting the profound need for robust data security measures.
An outsourced data analytics team accustomed to simultaneously handling multiple clients prioritizes data protection. They comply with specific standards to ensure the utmost safety of client data. Outsourcing software development may help create a robust, streamlined business process for enhanced data security.
• Quick data access
Managing vast volumes of data can create difficulties in accessing critical information promptly. Outsourcing professionals specialize in meticulously organizing your data, making it readily accessible and usable whenever necessary. Their primary goal is to guarantee the accurate and efficient handling of the data stored within your database.
6 Things to Know When Outsourcing Data Analytics
Outsourcing data analytics can be a game-changer for SMEs, but success hinges on informed decisions. This section discusses six things to know about outsourcing to help you navigate the world of data analytics outsourcing effectively.
1. Data security and privacy
In 2022, the global average data breach cost was $4.35 million, underscoring the importance of safeguarding data against cyber threats and breaches. Data security keeps customer trust and ensures regulatory compliance.
Verify if your outsourcing partner employs robust security measures, including encryption, access controls, and regular security audits. Additionally, you can establish a comprehensive data protection agreement that clarifies responsibilities and liabilities, which is crucial.
2. Partner selection
Selecting the right outsourcing partner can make or break it for SMEs, especially since a big responsibility falls on the outsourced provider. List criteria and considerations that ensure their services match your business needs.
Some things you may want to look out for include evaluating their expertise, industry knowledge, and track record. Your outsourcing partner must possess the capabilities to deliver accurate and valuable insights through research, including case studies and client testimonials.
3. Data quality management
Data quality is essential, as inaccurate or incomplete data can lead to flawed conclusions and costly decisions. Consider collaborating with your outsourced partner when establishing data quality metrics, validation processes, and data cleansing procedures.
Using data quality tools and regular audits can help maintain high standards. In one instance, a study revealed that poor data quality costs businesses an average of $12.9 million, highlighting the critical nature of effective data quality management in data analytics outsourcing.
4. Data governance
Establish clear data governance policies and procedures with your outsourcing partner. This provides a structured framework for effective data management, regulatory compliance, risk mitigation, data integrity, and trust building.
These policies include defining roles and responsibilities, data ownership, data access controls, and data lifecycle management.
5. Communication and collaboration
Maintain open and effective communication channels with your outsourcing team. This helps align data analytics efforts with business goals, fostering transparency and ensuring project success.
Like any other aspect of business, poor communication can lead to misunderstandings, delays, and ineffective data analytics outcomes, slowing progress.
6. Scalability and flexibility
Not everything in business stays the same. It’s normal to grow, evolve, and experience rough patches, but the key to success is adapting to these changes.
Assess your chosen outsourcing partner’s services for scalability and flexibility to confirm they can accommodate your evolving data analytics needs. Whether it’s growth, seasonal fluctuations, or shifts in market demands, a flexible partner should seamlessly adapt their services to match your changing requirements. This ensures that your data analytics efforts remain effective and agile over time.
Embrace Data Analytics Outsourcing and Catalyze Your SME’s Success
Data analytics outsourcing isn’t just an option; it’s a strategic choice. When used correctly, you can leverage these insights to gather relevant and focused data to improve business strategies.
The benefits of small business data analytics are not mere luxuries; they’re the driving forces behind SME success in a data-driven world. As you reflect on the insights shared, remember that you are vital to transforming your SME.
Frequently Asked Questions (FAQs)
Q1: Why should SMEs consider outsourcing data analytics?
Outsourcing data analytics offers cost efficiency, access to a specialized pool of expertise, scalability to accommodate business growth, robust data protection, and quick access to organized data, enabling SMEs to make informed, data-driven decisions without the overhead of managing an in-house team.
Q2: How does outsourcing data analytics impact data security and privacy?
Outsourced data analytics teams prioritize data security by implementing encryption, access controls, and regular security audits. These measures ensure the safety and privacy of client data, maintaining customer trust and compliance with regulatory requirements, ultimately bolstering business credibility.
Q3: What factors should SMEs consider when selecting an outsourcing partner for data analytics?
Selecting the right outsourcing partner is crucial. SMEs should evaluate the partner’s expertise, industry knowledge, track record, and ability to deliver accurate insights. Case studies and client testimonials provide valuable insights into the partner’s capabilities, helping SMEs make an informed decision that aligns with their specific business needs.
Q4: How can outsourcing data analytics contribute to effective data quality management?
Collaborating with an outsourcing partner allows SMEs to define data quality metrics, validation processes, and data cleansing procedures. Using data quality tools and conducting regular audits ensures that data remains accurate and reliable, preventing flawed conclusions and costly decisions resulting from inaccurate or incomplete data.
Q5: How does outsourcing data analytics support business scalability and flexibility for SMEs?
Outsourcing partners provide scalability and flexibility to accommodate SMEs’ evolving data analytics needs. Whether it’s adapting to growth, seasonal fluctuations, or market shifts, a flexible partner seamlessly adjusts its services, allowing SMEs to maintain effective and agile data analytics efforts as their business environment changes.
Empower your SME with data analytics outsourcing. Gain a competitive edge, data-driven decisions, and resource optimization tailor-made for your business. Contact us today and elevate your SME capabilities!