Outsource Business Analytics Services: A Strategic Move Worth Considering

In the fast-paced business world, the ability to make data-driven decisions is rapidly evolving from a luxury to a necessity. Organizations are realizing the immense value hidden in their data, and are turning to business analytics to unlock it. However, the question that often arises is, “Should we outsource business analytics services?” The answer is a resounding yes, for a multitude of reasons.

Outsourcing business analytics refers to the decision of a company to hire external experts who possess specialized knowledge about tools and techniques for data analysis, rather than managing these tasks in-house. A 2020 Analytics Outsourcing Study by Deloitte showed that about 34% of organizations already outsource part, if not all, of their analytics operations. Further, Gartner predicts that by 2022, up to 90% of corporate strategies will explicitly mention information as a critical enterprise asset, which speaks volumes about the importance of business analytics.

Why Outsource Business Analytics?

1. Access to Expertise and Latest Technologies

For many organizations, especially those outside the technology sector, maintaining an in-house team of analytics experts equipped with up-to-date knowledge is impractical. Outsourcing providers, on the other hand, hire professionals specializing in various areas of business analytics. These experts are well-versed in the latest analytics tools and algorithms, ensuring clients receive top-level analysis that they might not achieve internally.

2. Cost and Time Efficiency

Maintaining an in-house analytics team implies continuous recruitment, training, and upgrading of technologies – all of which are time-consuming and costly. Contrarily, outsourcing eliminates these overheads allowing for forecasting and budgeting to be more accurate, thus providing a more direct return on investment.

3. Core Business Focus

Outsourcing non-core services like business analytics allows organizations to focus on their core business areas. As renowned business consultant Peter Drucker once said, “Do what you do best and outsource the rest”. Henceforth, by outsourcing analytics, resources get freed up, enabling a focus on customer satisfaction, product development, and other critical functions.

Addressing the Concerns

Despite its apparent benefits, outsourcing of business analytics does raise concerns. Questions about data security, quality of analysis, and service continuity are common. However, professional outsourcing providers are committed to mitigating such risks.

1. Data security

To ensure that your data remains secure while outsourcing, it’s important to select a provider that prioritizes data privacy and has robust security measures in place.

2. Quality assurance

High-quality outsourcing providers often have stringent quality assurance procedures to ensure the accuracy and relevance of their analysis, minimizing your risk of receiving subpar analytics.

3. Service continuity

Business continuity is a key consideration when outsourcing. Reputable firms have contingency measures in place to ensure uninterrupted service, protecting your organization from any potential impact.

Conclusion

Outsourcing business analytics has clear benefits from improved access to expertise and technology, to cost savings and an increased ability to focus on core business areas. While concerns around data security, quality, and continuity are valid, companies can mitigate these risks by collaborating with trusted and experienced providers.

With digital transformation increasingly blurring the boundaries of industries and competition intensifying, companies need to think strategically about their use of business analytics. Therefore, as we look to the future, outsourcing business analytics might not merely be a practical business decision, but a strategically critical one.

Are you ready to make that strategic move? Your competitive edge may very well depend on it.