In our present-day, data-driven economy, companies seek to harness limitless data in their quest to gain an edge over competitors. Central to these efforts is Business Intelligence Analytics (BI Analytics), a complex process that involves translating how raw business data collected from various sources into cogent and actionable insights. However, the intricacies inherent in BI Analytics often make outsourcing a viable option for many business outfits. This article will delve into understanding and emphasizing the advantages of sourcing out Business Intelligence Analytics and presenting how this trend can be instrumental for organizations to gain leverage in the competitive business ecosystem.
Understanding Business Intelligence Analytics
Business Intelligence Analytics is a practice that employs a set of strategies, applications, and technologies to collect, integrate, analyze, and present raw data from business activities. It helps decision-makers understand and evaluate business trends and patterns, thereby providing actionable insights which, in turn, guide strategic planning.
For instance, an online retail company might use BI Analytics to ascertain the habits and preferences of their customers, consequently personalizing their services to increase sales and customer satisfaction.
Outsource Business Intelligence Analytics: Why Organizations Should Consider It?
While the potency and effectiveness of BI Analytics are undeniable, many companies lack the needed infrastructure, expertise, or resources necessary in-house to leverage this sophisticated analytical process. This is where outsourcing becomes a game-changer.
Research by the IT Services Marketing Association showed that in 2020, the global outsourcing market, specifically in IT, was worth $92.5 billion, a significant chunk of which was attributed to BI Analytics. Furthermore, Gartner predicts a promising growth pattern for this trend, with the Business Intelligence and Analytics software market projected to reach $18.3 billion in 2022.
So, why is outsourcing BI Analytics gaining increasing traction?
Expertise and Efficiency
Outsourcing provides companies with direct access to skilled analysts and cutting-edge platforms without the expensive and complex process of hiring or acquiring them in-house. These professional analysts can quickly identify, address, and resolve potential challenges often missed by non-experts, hence improving the efficiency and accuracy of analysing data.
For instance, Google Analytics, a BI tool, is commonly used but not easily understood. An outsourced BI professional who is experienced with the tool may provide vital insights that in-house professionals may overlook.
Establishing a BI department in-house can be expensive. Outsourcing providers, on the other hand, offer flexible pricing models, thereby reducing costs while ensuring a company only pays for its requirements. Statista reports that 59% of businesses globally use outsourcing as a cost-cutting tool.
Increasing Focus on Core Business Functions
By outsourcing BI Analytics, a company can devote more attention to its core business functions without getting overwhelmed with complex data analytics. In other words, it allows businesses to focus on what they excel at – running their business.
Addressing Concerns about Outsourcing
One significant concern often raised about outsourcing is managing privacy and security issues. Trusting sensitive information to a third party indeed requires careful consideration. However, reputable BI service providers understand these concerns and employ robust security measures and techniques to ensure that the data remains confidential and safe from breaches.
Another concern is that of control. Some companies may be worried about losing control over their data analytics. It is essential to remember that good outsourcing providers work in collaboration with their clients, not in isolation.
In conclusion, outsourcing Business Intelligence Analytics can be a strategic decision for businesses eyeing growth, cost-efficiency, and access to top-notch expertise. While it may have its concerns, the benefits often outweigh these challenges, especially when companies choose experienced and reputable outsourcing providers. The future of BI Analytics indeed points towards outsourcing, and organizations should consider getting on board this fast-moving train.
With the enormous tidal wave of digitisation hitting businesses across the globe, it is no longer a question of ‘should we embrace BI Analytics?’ but ‘how well can we harness BI’s potential for our growth?’ And the answer might just be in outsourcing.