From Fortune 500 companies to medium sized enterprises, embracing digital transformation has led to data becoming the new currency. The ingestion of data as a result of daily business processes has skyrocketed over the past few years, and 95% of businesses face problems with unstructured data. Most companies do not have the sheer manpower needed to analyze all the data they generate and this is where Analytics Outsourcing comes in. Data Analytics Outsourcing is a simple model of cooperation where a company trusts an analytics service provider with its data and receives actionable insights. And to make the deal sweeter, it is the analytics service provider who has to handle everything from setting up infrastructure and maintaining it, to data management and analysis.
To help you visualize the service a little better, allow me to share how a service provider helped a global CPG company with their data analytics requirements. The company wanted to measure the ROI on their investments associated to the FIFA 2018. The vendor had the objective of analyzing the company’s data, quantifying perceptions around players/teams, and offer actionable insights to help strategize endorsements.
Since the event in question was on a massive scale, the vendor developed a comprehensive data aggregation structure, to ensure the data is not lost and is as relevant as possible. They went on to conduct player comparisons and analysis to help rank competitive positions, tracked popular matches at every stage of the tournament to better understand the driving factors behind players/teams gaining or losing popularity. Analysts derived metrics to help quantify winner predictions; and offered insights around players endorsed by the brand and how they resonated with the fans. These valuable insights gained from analyzing both the brand’s and FIFA’s data, helped to boost the brands sales and digital impact over the course of the event and even after France had taken home the World Cup.
To understand how analytics outsourcing can help your business, I feel is it essential to take a step back and figure out why your business needs to outsource its analytics requirements.
Why your Business needs Analytics Outsourcing
In today’s data-driven market environment robust analytics offers a competitive edge, especially to Small and Medium Enterprises (SMEs). Your business can rely on an external service provider who takes all the responsibilities, respects your data privacy policies, and delivers error free actionable insights. The advantages afforded by analytics outsourcing far outweigh the minimal risks, and the following are a few reasons your business needs to consider outsourcing its data analytics requirements.
Outsourcing offers you the advantage of getting the exact skill-set needed for your industry. Analysts often work in the same industry for an extended period of time, gathering valuable insights that are very specific to the industry. Insights that can help you better shape your products or services and provide a better customer experience. If you are in the e-commerce industry, you will be able to outsource your Customer Experience Analytics requirements from a vendor who specializes in CX Analytics alone. Working in a niche field, the vendor will have deep industry knowledge that your brand can greatly benefit from.
With a high demand for quality data analysts there are few eligible candidates that you can access and vet for the position. Moreover, the hiring, onboarding, and training of employees is a resource and time-consuming process. Analysts with niche skill-sets are even harder to employ and afford. You can simply outsource your data to a service provider who can support your business immediately with talented data scientists, skilled analysts and machine learning experts. Why employ expensive personnel, when you can outsource their services and save resources?
SME’s and even large organizations do not always have the manpower or the bandwidth to carry out time-intensive analytics tasks while ignoring other business processes. Analytics outsourcing offers you flexibility, freeing up core-employee bandwidth which can be dedicated to other facets of the business which need attention.
Companies handling their own data analytics requirements are often the victim of unintentional non-compliance with security regulations. You never have to worry about sticking to regulations such as General Data Protection Regulations (GDPR) if you outsource your analytics requirements. Professionals analysts know the regulations well and can help you avoid the common pitfalls while providing you with error-free insights.
Effective data analytics is crucial to customer-centric businesses, especially in a B2C enterprise. Analytics is key to understanding your customers through their data, and leveraging the insights to anticipate their needs, enhance your products, better your services and improve the overall customer journey. Why depend on an in-house survey, when outsourcing can enable you analyze a million clients every time they engage with your brand across channels?
Last but not the least, the entire process from talent acquisition and onboarding to training and full-time employment, along with providing the necessary hardware and software required for efficient data analytics, demands time and resources. Every resource employed costs money, and in today’s fast-paced economy, even time is money. Your organization can save all costs associated with employing data scientists and analysts, by simply outsourcing analysts at a regularized fee.
Analytics Outsourcing is the key to your business minimizing cost and effort, while maximizing the revenue being generated.
Common Concerns about Analytics Outsourcing
It is natural to have certain questions and concerns when your organization is opting for an analytics outsourcing partner, such as the security of your data and which service provider will be ideal. The following are some common concerns that keep recurring, and are questions that you may have as well.
Selecting the right Vendor
While choosing the ideal service provider for analytics outsourcing, always check the vendor’s expertise, their partnerships and certificates. While examining the vendor’s portfolio, keep a lookout for projects pertaining to your industry. A vendor with enough experience in your industry will be able to offer invaluable insights to boost your business. You should also pay attention to other aspects such as speaking the same language, coordinating during working hours, a proactive approach to analytics and efficient conflict resolution. All these add up to the overall quality of service you shall receive.
Securing your Data
Data security should be one of your primary concerns and its best to implement greater security measures than is taken for internal storage. The vendor’s track record will speak for themselves as to how safely they handle data, and getting the vendor to sign a Non-Disclosure Agreement (NDA) prior to receiving company data, is a must. Ensure that the outsourcing contract covers how the vendor needs to store your data, security measures that should be in place and that they will be held liable if there is a data leakage.
Access to Analytical Models
Unless it is specified in the contract itself, the service provider is not liable to share with your brand the processes and models of analyzing the data. The vendor implements the analytics model they deem best suited for your industry and your brand, and you simply receive the insights they gather.
Active Involvement in Analytics
Even though you may not have visibility into the actual analytics processes, your brand needs to be an active participant in collaboration with the service provider. Most of the involvement will be in the discovery stage, when the vendor will need your help to assess the current situation your brand is in, so that they can figure out how analytics can boost your business. Based on this discovery stage, the service-level agreement, or contract, is drafted and signed, prior to the vendor providing the services.
Effective Contracts for Efficient Outsourcing
Your brand needs to cover some essential aspects in the contract you offer service providers, so that you can retain a modicum of control and the outsourcing is efficient.
- KPIs and SLOs:
Your brand has to set the Key Performance Indicators (KPIs) and the Service-Level Objectives (SLOs). That way you can lay down the objectives, select the route the vendor has to take, measure their performance and maintain a certain control over the services being provided. This also helps the vendor to know exactly what you want, and deliver insights accordingly.
- Communication and Clarity:
You should specify in the contract itself, that the vendor should provide you with timely progress reports, how often you expect them to communicate with your brand, which department to contact and the facets of their collaboration. Communication channels need to open, and feedback needs to flow back and forth.
- Non-Compliance Clauses:
Ensure the contract contains clauses that let you terminate it in the event of the outsourcing partner failing to adhere to deadlines and SLOs.
Analytics Outsourcing for Your Brand
If you are still not convinced as to why your brand needs to consider analytics outsourcing, the following indicators should help you decide:
- Your brand wants value from data, but can’t wait months for analytics insights.
- Your brand does not have the resources to set-up and maintain an in-house analytics team.
- Your personnel are not capable of analyzing vast data-sets, at least as yet.
These indicators along with all the reasons stated above, should make a compelling case for you to consider outsourcing your analytics requirements to a service provider like Course5 Intelligence. Let us take the burden of analytics, while you run your business and make effective enhancements based on the insights gained.
Employing AI and custom Machine Learning models for your analytics outsourcing requirements, we can enable you to make effective improvements to your brand with respect to the market, your competition and the customers. Help us to help you leverage your data, make insights actionable and drive digital transformation.