In the previous part, the advantages and disadvantages of data analytics outsourcing vs building your own in-house capability, the overall conclusion was that outsourcing data analytics shouldn’t be an issue as all the risks can be mitigated. Additionally, it brings in possibilities to leverage the professionalism and experience of the outsourcing team. In this post, I’ll be diving into what happens when someone decides to outsource their data analytics and what happens next.
Data Analytics Outsourcing Process
I’ve decided to outsource data analytics, what’s next?
In most cases, outsourcing data analytics shouldn’t be an issue for any sized business as it helps the company stay focused on their core competencies and their business. Industry experts also agree that outsourcing analytics is a good plan for most companies. But while you are considering outsourcing analytics, it is always necessary to do your due diligence.
Step 1: Selecting a partner and defining objectives
This step outlines the selection of partners, what you should consider when choosing one and what should be outlined in the contract and objective phases.
Selecting a partner
Outlined below are some of the questions you need to answer before selecting a partner:
- Is the partner trustful?
- What references does the partner have and do they have a proven track record?
- What can be done to minimise the risk of a data breach?
- How is the data handled?
The success of data analytics outsourcing comes from the relationship between the company and the outsourcing partner.
Signing the contract – mitigating risks
The main area for data contracts should be security.
No one wants their data to leak into the hands of a third party. Hence strict rules will have to be put in place to protect the company, employees, its customers, and its data. In order to mitigate all those risks, NDAs should be put in place and all other risks need to be mitigated in this instance. If there isn’t trust between two sides, data access should be limited and extended if there is a need.
Defining the objective = definition of success
It is always important to define a goal or what the partnership should achieve. This enables both sides to understand the exact need and also set up expectations. It is almost certain that a partner will find something that will be beneficial for improving your business!
This is the value add that will come from combining professionals from different industries. They are able to have an outside-in view of the business and can detect potential issues and problems.
Step 2: Organising partnership
This step is all about partnership, how to handle communication and how to set up collaboration so that the partnership is beneficial for both sides.
Companies that are successful in becoming digitally-enabled and customer-obsessed are those best able to collaborate effectively both internally and externally. MIT Sloan Management Review’s research found that: “A focus on collaboration – both within organisations and with external partners and stakeholders – is central to how companies create business value and establish a competitive advantage.”
Collaboration is also key between both parties. Outsourcing partners should be treated in the same way as other internal employees. This will enable better communication and therefore yield better results. So it is important to find a trusted partner who can easily collaborate and who can bring their expertise.
The Rhythm of Business (RoB)
Aligning and setting up RoB is a key element when it comes to outsourcing. This should contain stakeholders, projects, project timelines, status updates, and other critical processes. Once that has been set, both sides know their dependencies and specific processes can be put in place.
Handover and workshops
Whenever outsourcing, it is good practice to get a partner up to date. It is essential to share everything related to the area to which an outsourcing partner is hired for. This will help them get up to speed and provide value in a quicker manner. These handovers/workshops should include knowledge sharing from both sides and it helps with team-building.
It is suggested to have such sessions once in a while to keep all parties up to date and to allow knowledge sharing of best practices.
How Helmes can help?
In Helmes, we believe in long-lasting partnerships that enable both sides to grow. In the data world we currently focus on providing three services:
- Building data warehouses
- Doing data analytics
- Building and automating data-driven dashboards for tracking KPIs and helping organisational growth
Our team of world-class data experts, from different walks of life, are there every step of the way and will provide assistance in data-driven decision making.
So if the above sounds right, get in touch. We will be happy to assist you on this journey and help your business to grow and thrive.