What Data Projects Should You Be Outsourcing?
If you work with data, you know the pain of ‘the next big thing’.
Every year, a new technology or approach takes the business world by storm. In most cases, this is a good thing – AI, EDGE tech, enhanced security options… All of these have the potential to make your business more effective and more secure.
But for data professionals they also add workload. This year, large organisations are focusing their efforts on AI. Depending on the scale of adoption, this could mean a need for new transformation rules, real-time data processing, higher data volumes, more frequent changes in data requirements… and so on.
This constant state of change means more than just a need for modern data platform capabilities. It means there is a real strategic need for efficiency, not just in cost, but in agility, adaptability, and innovation.
This means that if you want to stay ahead of the curve, you may need to consider outsourcing your data engineering projects and platform builds.
In the past, outsourcing was usually seen as a cost-cutting measure, but over time, it has become a more strategic tool, allowing you to harness talent, tech and solutions which would otherwise be out of reach. By delegating specific tasks - or entire projects - to external specialists, businesses can focus on their core competencies while accessing additional expertise where it’s needed most.
So, what’s driving this shift to outsourcing, and more importantly, how can you make it work for you?
The Growing Need for Enterprise Data Infrastructure and Platforms
Before we go any further, let’s pause and think about some of the key enterprise data platforms in use today. Apache Hadoop, Microsoft Azure, AWS, Google Cloud. Whichever platform you have chosen (and there are many, all with attached pros and cons), these platforms exist to store, process and analyse the truly vast amounts of structured and unstructured data organisations now possess.
They play a central role in digital projects for a variety of reasons, but typically, a good data platform and architecture will offer:
Scalability: They can handle vast amounts of data, scaling out as the data grows, ensuring businesses can manage data surges without performance issues.
Unified View: By integrating data from diverse sources, these platforms provide a holistic view of business operations, aiding in informed decision-making.
Advanced Analytics: With built-in tools for machine learning and data analysis, businesses can derive actionable insights, predicting trends and customer behaviours.
Flexibility: They support various data types and structures, accommodating evolving business needs.
Cost-Efficiency: Storing and processing data in these platforms can be more cost-effective than traditional methods, especially with cloud-based solutions.
It’s easy to see how these platforms have become the backbone of many modern digital operations. However, they also come with some limitations, and if not carefully managed and properly integrated into your data sources, they can even add to data issues.
The value of outsourcing your data engineering projects
It’s here that outsourcing can show its true value. Let’s consider some of the advantages.
The complexity of establishing, fine-tuning and connecting any data platform often demands a specific set of expertise that might be scarce within an organisation. You might also face hurdles when you need to integrate diverse data sources, transition from legacy systems, or ensure your security remains top-tier – all of which can be daunting.
Fortunately, the right outsourcing partner can provide some relief. When choosing to outsource, you’ll usually face a choice of models: Agencies, Consultancies, Marketplaces, Offshore Software Houses and more.
All come with various pros and cons, and managing skills, speed, and cost while avoiding adding to your management overheads or security headaches can be a delicate balancing act.
Fortunately, you can streamline this process by asking a few key questions in advance.
Key Considerations for Outsourcing
1. Nature of the Project: Routine vs. Core Business Functions
When it comes to outsourcing, it's vital to understand the distinction between routine tasks and core business functions.
Routine tasks, such as data cleansing or basic analytics, can be easily outsourced as they are typically standardised and have a lower impact on your business's strategic objectives. This not only frees up your internal team to focus on more mission-critical tasks but also can lead to cost savings.
On the other hand, core business functions, like strategic decision-making based on data analytics, may be more sensitive.
Outsourcing such functions requires a high degree of trust and alignment between the business and the service provider, given that these activities are closely tied to the organisation's unique value proposition and competitive advantage.
For longer-term and more strategic projects and implementations, a consultancy will typically offer a more nuanced and valuable long-term relationship than other outsourcing resources.
2. Data Sensitivity: Understanding External Risks
Entrusting an external partner with access to your data comes with inherent risks. The potential for data breaches, mishandling, or unauthorised access means your partner will need to have robust security protocols and a deep understanding of providing secure integrations.
Regular audits, compliance with international data standards, and transparent communication about data handling processes can alleviate some of these concerns.
This need for ongoing communication – possibly with multiple internal departments – means you must select a partner with a strong customer service process that understands and provides fast responses to enquiries.
Because of this, choosing an offshore software house or marketplace may not be suitable for this type of project.
3. Quality Control and Oversight: Ensuring Standards
While outsourcing can bring efficiency and expertise, it's crucial that the result aligns with your business's quality standards. Setting clear expectations, regular check-ins, and milestone reviews can ensure that the outsourced project stays on track.
It's also beneficial to establish a dedicated point of contact within your organisation to manage and oversee the outsourced tasks, ensuring alignment and timely resolution of any issues.
4. Geographical and Cultural Factors: Navigating Differences
Outsourcing, especially when done internationally, introduces challenges related to time zones, language barriers, and cultural nuances. It's essential to be aware of potential miscommunications or misunderstandings. Having regular meetings, possibly at overlapping working hours, can help bridge this gap.
Furthermore, investing in cultural training for both parties can foster a more harmonious working relationship, ensuring that both sides understand and respect each other's work ethics, communication styles, and business customs.
This can be mitigated by choosing a partner that offers a stable team and is used to partnering on longer-term projects, which brings us neatly to our final consideration.
5. Long-Term vs. Short-Term Needs: Assessing the Relationship's Duration
Finally, it's imperative to evaluate the nature of your relationship with the outsourcing partner. If the project is a one-off, you might prioritise speed and efficiency. However, a data engineering platform is a core resource and will require long-term collaboration.
It's worth investing time in building a strong relationship, understanding each other's working styles, and ensuring there's a strategic alignment. In the latter case, you might also consider factors like the potential for onsite visits, integration with in-house teams, and opportunities for joint training or development sessions.
By keeping these considerations in mind, you can ensure that your outsourcing decisions are well-informed, strategic, and beneficial in the long run.
Identifying Projects That Benefit Most from Outsourcing
All of this looks great on paper, but there’s definitely an emotional element to handing over the keys to a large-scale project, and some projects will definitely benefit more than others from external resourcing.
From the intricate realm of enterprise data platform development and management to the nuanced challenges of data strategy and governance, there are key areas where external partners can provide invaluable expertise.
The real value in choosing a long-term partner comes from stability. A good consultancy will typically have a flexible framework already in place. This means that you can benefit from a quick time-to-commencement and an understanding that you are working with a tried and true set of parameters.
It’s here that partners who are used to developing an ongoing relationship come into their own.
A digital consultancy, for example, will not only be able to dive into your data quickly but can also provide you with analytics functions and dashboards that have been developed over time, featuring insights you may not have considered in your initial planning.
They’ll also be able to provide adaptable security measures that can evolve along with your business needs.
Having this longer-term view also allows you to avoid having to go back to the drawing board every time you need an update – or whenever the next big thing comes along to disrupt business again.
The potential of outsourcing cannot be understated. It's not just about cost-saving but about driving efficiency, tapping into specialised expertise, and ensuring that businesses remain agile in an ever-changing environment.
As digital demands evolve, it's crucial for companies to critically assess their projects and strategies. Outsourcing, when done thoughtfully and strategically, can be a powerful tool in your arsenal, unlocking potential and propelling business forward.