As you have more and more data piled up for you, the analysis and management of such data in the most optimal way become a major concern. This is because only the optimal use of the data can guarantee a competitive advantage for your business. So this is the exact reason why data analytics is indispensable. It is almost impossible to build a sustainable business without embracing data analytics.
However, the question that many business owners have is whether to outsource data analytics or hire people to focus on delivering data analytics internally. This article will comprehensively address this issue by giving you the pros and cons of each approach.
Insource Data Analytics
Insource data analytics means that the company has an in-house team that is responsible for its data analytics. This approach has its advantages and disadvantages:
- Doing data analytics yourself offers you greater control of your data as well as less compliance risk.
- Handling data analytics internally will enable you to prioritise resources to meet the demand of your business.
- Putting an analytics team together is a difficult process. Many companies cannot put a formidable analytics team together.
- Insource data analytics comes at a high cost. You will need to hire the team and continuously pay them salaries. They are part of your employees and are entitled to employee benefits. Looking at the annual pay of a data professional, you will realise that it costs more to do data analytics in-house than to outsource it.
- Your in-house team will likely not have the kind of expertise that a company specifically focusing on data will have. For example, if you hire a company like Axual to handle your business analytics, you will enjoy the specialised competence of a full team comprising professionals and experts in different aspects of data analytics all at once instead of relying on only 1 or 2 people in your firm handling data analytics for you.
Outsource Data Analytics
This approach involves getting an external team to handle your data analytics. Based on our assessment, this is the best approach for many companies. The advantages and disadvantages of outsourcing data analytics are discussed below:
- Cost is the greatest advantage you have here. By outsourcing data analytics, it means you will have access to highly specialised data professionals without incurring full-time employee expenses.
- With this approach, there will be no competing internal priorities. Once you outsource your data analytics, it is completely off your shoulder and you can focus on more internal priorities and other core operations of your business.
- A data analytics firm will know up-to-date analytics tools and techniques. That is their only job after all. In a nutshell, they are thought leaders in the niche.
- There is a risk of exposing your information and sensitive data to outsiders. This can, however, be addressed by putting adequate measures like a Non-Disclosure Agreement in place.
- Sometimes, there can be communication breakdowns.
This article has shown you the advantages and disadvantages of insourcing and outsourcing business analytics. At Axual, we have a team of professionals with several decades of experience and expertise in data analytics and we are ready to handle your data analytics for you anytime.
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