Data Science Outsourcing: Key Risks & Benefits
On a daily basis, the average person generates up to 2.5 quintillion bytes (or 2.5 billion gigabytes) of information. Dealing with such massive data volumes practically requires innovative methods and technology. That’s why many companies need assistance with collecting, processing, storing, and interpreting various types of information. This is where outsourcing data science comes to the rescue.
According to Mordor Intelligence, the global market for data analytics outsourcing was valued at $8.11 billion in 2022. Given the increasing demand for this service among businesses, experts predict an annual growth rate of 34.33%. By 2028, the market is projected to reach $60.02 billion.
So, what are the data science benefits offered to companies outsourcing their information processing? How does it work? What risks should be considered, and how can responsibilities be effectively delegated to third-party contractors? In this article, you’ll find comprehensive answers to all these questions from the experts at GetTrusted.
What Is Data Science Outsourcing?
Data science outsourcing is the process of hiring an external company that provides services related to working with a portion or the entirety of your organization’s data. You might need to consider hiring a contractor in cases where:
- Your in-house department is overwhelmed by large volumes of data and struggles to process them promptly.
- Budget constraints prevent you from adding necessary specialists and providing them with all the resources they need for their work.
- Data arrays require new approaches to processing, storage, security measures, and more.
The external specialists who will work for you already possess all the required skills and knowledge in data science. As a result, they can seamlessly integrate into your team, offer recommendations for optimizing internal analytics-related processes, devise strategies for implementing new tools or technologies, and much more. These benefits of data science ensure a quick start to working on your project.
How Does Data Science Outsourcing Work?
Every business requires high-quality customer information processing, market trends, competitors, marketing efforts, sales, and more. Let’s delve into how it operates to better grasp the concept of data science outsourcing.
Outsourcing entails temporarily expanding your internal team with external talents. Armed with extensive knowledge of big data, they help implement tools for working with critical information quickly and reliably. These external specialists who join your company can assume partial or complete responsibility for data processing.
In certain cases, contractors are hired to tackle specific tasks. For instance, automating routine operations. Information-handling experts are often hired alongside developers, addressing issues of integrating new tools or technologies into organizational workflows. This could involve incorporating data visualization programs into corporate software or integrating data clustering modules.
Analytics must be comprehensive to provide a full picture of business operations, enabling informed decisions on advancement and growth. However, not every enterprise can afford to hire an entire department of data science specialists and provide them with the necessary infrastructure. This is why outsourcing services in information processing are increasingly prevalent across various business industries.
Outsourcing Data Science: Pros and Cons for Your Business
Let’s examine the pros and cons of data science for a company that has decided to bring in an outsourced team.
Pros:
Among the strengths of data science are the following:
- Enhanced data quality: Data science is designed to carefully sift valuable information from large amounts of raw unstructured data. This methodology helps you to obtain high-quality and critical data for successful business development.
- Reliable predictive analytics: Based on the collected information about the past and current situation in the company, you can make effective marketing strategies and expediently allocate a budget for different areas of operational activities.
- Business process automation: Data science methods allow your company to reduce the cost of processing similar tasks and improve employee productivity through automation tools. Thus, errors caused by the human factor are reduced, and data accuracy in your databases is increased.
Cons:
To better understand data science pros and cons, it is important to familiarize yourself with the weaknesses of the industry:
- Poor understanding of the term “data science“: As the term lacks a precise definition, some organizations might misconstrue the essence of information processing services. It’s crucial to discuss the competencies of hired specialists with the contractor upfront to avoid misunderstandings in future collaborations.
- Inaccurate analysis outcomes: Forecasts based on processed information can be inaccurate if unreliable or outdated data sources are used. Incorrect management and improper application of technical resources for information processing also yield inaccurate results.
Studying the key pros and cons of data science, it’s also essential to consider the advantages and risks of outsourcing. These need to be taken into account by businesses to receive the best services from a contracting company.
Benefits
Experienced experts ensure efficient management of all the necessary information for business development. Let’s take a closer look at the key benefits that an outsourcing company provides you.
Diverse Talent Pool
You don’t have to undergo lengthy searches or interviews to find an experienced specialist for your internal team. The contractor already has top-tier talents ready to work for your company. You can swiftly select any expert from their pool, ensuring you receive truly professional support.
Enhanced Scalability Opportunities
Hiring an external team frees up more internal resources to focus on other critical areas of your business’s growth. Seasoned external data processing and analytics experts can accelerate the development and launch of your new data science project.
Access to Professional Tools
A competent service provider comes equipped with innovative toolsets and possesses all the necessary technologies for high-quality data processing. Data science benefits also include the fact that outsourcing providers offer you the implementation of automation tools. This approach significantly simplifies the scaling process and expands the functionality of your existing software.
Savings in Financial and Time Resources
Hiring external specialists aids in conserving your company’s budget and time for project implementation. You won’t need to allocate these valuable resources to search for suitable candidates, handle paperwork, set up workstations, or procure necessary equipment. The contracting company takes care of all hiring and labor payment matters and ensures their employees are equipped with everything they need to work on your project promptly.
A Wide Range of Options
As GetTrusted is a platform for finding contractors, it’s safe to say that the market offers numerous companies capable of streamlining the process of working with large datasets. Regardless of industry or size, an experienced organization can curate a suitable external team for your needs.
Risks
In addition to the benefits of data science, before ordering outsourcing services, it’s crucial to examine potential risks. This proactive approach helps you prepare and avoid unpleasant situations.
Insufficient Project Management
Some contractors might simultaneously take on many projects to maintain their reputation as a sought-after company. Consequently, a shortage of hands-on-deck can result in incomplete project management. Delays and errors arise, reducing data work efficiency. To sidestep this, carefully review feedback from other clients, and study the team’s portfolio and cases.
Communication Challenges
You could be receiving services from outsourced specialists located in distant countries. This might complicate communication due to differing time zones and cultural differences. Professional providers take necessary steps to ensure stable communication channels with you and mitigate potential communication hiccups.
Data Security Assurance
Hiring a data science service provider entails granting them access to sensitive corporate information. You should carefully choose a contracting company to protect yourself from possible data leakage. Seek recommendations from partners and friends who have utilized a specific provider’s services or explore specialized platforms for finding professionals. For example, on the GetTrusted platform, each company undergoes a personal check and quality control of services before being included in the rating.
How to Successfully Outsource Data Science to a Reliable Provider?
Approaching the selection of an outsourcing company requires careful consideration, as you’ll be entrusting them with your corporate and confidential information. To ensure peace of mind about the professionalism of external team members and to be confident in the success of your collaboration, follow these steps:
- Conduct Company Research: Narrow down a few contractors and compare them. Look to specialized platforms with rankings, ratings, and reviews. Request a personal consultation with a team representative to determine if they have experience in your specific business field.
- Create an Action Plan: Define the goals you aim to achieve through collaboration with outsourcers. Consult with specialists to formulate a comprehensive plan for improving information processing across different departments within your organization.
- Stay Informed and Involve Your Team: As you hand over data science to external experts, maintain communication to stay updated on progress and align with your plan. It’s crucial to involve your own team in the process optimization of information handling. This helps them quickly adapt to technical innovations and master the necessary tools.
Final Thoughts
Data science is a sought-after and continually evolving field that aids many organizations in determining the right developmental direction. It’s also responsible for optimizing internal business processes by automating departments dealing with extensive data. After exploring data science pros and cons, along with the benefits and risks of partnering with an outsourcing company, you’ll be better equipped to make an informed decision about the need for hiring.
If you’re searching for suitable experts, our platform offers lists of verified and dependable providers ready to take on your project.
