Advantages of Outsourcing Data Management

Data management refers to the process of collecting, storing, organizing, and maintaining data. It is now a crucial task for companies of all sizes and in all sectors in the modern digital world. Overlooking the ever-growing volume, velocity, and variety of data has grown to be a challenging task. It calls for specialized knowledge and experience. By outsourcing their data analysis tasks to specialized providers, companies make a strategic decision to efficiently manage information. This step can be integral to achieving business success.

This is your guide to the “whats” and "whys" of data management, and the advantages that outsourcing data governance services can bring to your business.

Data management: the concept

Data management is like having a well-organized filling system. When working in an office that processes lots of documents, without a proper filing system, it would be challenging to find the right document when you needed it. Important information might also get lost or overlooked. This will also limit your efficacy in your role because you had to spend time looking for a document in an unsorted mess of records instead of using your energy to focus on your core activities. What's more, this affects the overall function of your office. As your and your co-worker's office time is constantly disturbed by this quest to find the file you're looking for in the unorganized sea of information. Had your office established a filing system that worked smoothly and efficiently, all these problems would not exist.

Data management for businesses works exactly like a well-organized filling system.

 

Proper data governance is like having all the documents neatly labeled, sorted, and stored in virtual designated folders or cabinets. This makes it easy for you and your colleagues to find the information you need quickly. Similar to how a filing system makes it easier to locate and use documents, data analysis makes sure that data is accessible, accurate, and compliant with laws. This amounts to make more informed decision-making, better operations, and increased security. Data management includes measures to safeguard data from unauthorized access, data breaches, and other security risks. Much like important documents are kept secure and private in a well-organized filing system.

 

Data Management: Common Challenges and Outsourcing Solutions

Data management is in and of itself a complex process; the practice of collecting, organizing, protecting, and storing data for analysis and decision-making takes time, energy, and practice to get it right. As one would imagine, many organizations will face various challenges in managing their data effectively.

Some of these challenges include:

• Handling large volumes of data that require more storage capacity, processing power, and data quality checks.
• Complying with changing regulations that impose different rules and standards for data privacy, security, and sovereignty.
• Integrating and harmonizing data from different sources, formats, and systems that may have inconsistent or incompatible data structures.
• Finding the right data that would help with the decision-making for the task they're handling at the moment gets extremely time-consuming.

 

Outsourcing data management can help organizations overcome these challenges by:

• Using the expertise and resources of a third-party provider who has the skills, tools, and infrastructure to handle large and complex data sets efficiently and reliably.
• Reducing the compliance burden by entrusting the data management provider with adhering to the relevant laws and regulations in various jurisdictions, as well as ensuring data security and protection.
• Improving data integration and quality by cleaning, transforming, and enriching data from multiple sources using the data management provider's standardized methods and best practices that have a track record of success.

By and large, outsourcing data management allows organizations to focus on core business activities while gaining more value from their data assets.

 

What can successful data management mean for your business?

Whether already well-established or up-and-coming, your business will find outsourcing data management to be beneficial for the following reasons:

Improved Knowledge

Effective data management enables organizations to gain knowledge from data and use it for better decision-making. Organizations can identify opportunities, problems, and risks by analyzing data for patterns and trends. By identifying popular trends, a retailer, for example, can use customer purchase data to inform marketing, pricing, and inventory decisions.

Better operational efficiency

Well-managed data allows for quick access and analysis, which cuts down on the time and effort needed to complete various tasks. Sometimes, this means digitalization. For example, a healthcare organization can use electronic health records to manage and store patient data. This would give professionals easy access to patient data and improving the efficiency of patient care.

Compliance with regulations

The ability to comply with regulations is yet another advantage of good data management. By ensuring that data is gathered, stored, and processed in accordance with predetermined policies and standards, effective data management practices can assist organizations in adhering to data protection laws and more.

Enhanced customer experience

Organizations can improve the customer experience and loyalty by providing personalized interactions, targeted marketing, and better customer service. All this thanks to the collection and analysis of customer data. 

Related: Read our article on how you can benefit from big data.

Now that the key concepts and benefits of data management have been established, it's safe to say that this is a very complex process. For this reason, more and more companies opt to outsource data management. Let's get to the benefits that outsourcing data management can bring to your business.

 

The Top 5 Reasons Why You Should Outsource Data Management

1. Outsourcing data management is cost-effective.

Cost savings are one of the main benefits of outsourcing data management. Building and running an internal data management infrastructure can be expensive both up front and over time. By taking advantage of economies of scale, outsourcing data management can be more affordable. The companies that outsource their data governance services have specialized resources, tools, and technologies. They can be used by a number of clients, spreading out costs and lightening the financial load on individual companies.

A small to medium-sized business (SME), for instance, might find it difficult to invest in pricey data management hardware, software, and infrastructure. Additional costs are associated with hiring and training specialized data management staff. The SME can access cutting-edge data management technologies and expertise by outsourcing data analysis to a third-party provider without having to pay the high upfront costs associated with setting up an internal data management infrastructure.

2. You’ll access specialized data expertise.

Data integration, data cleansing, data analysis, and data governance are just a few of the areas where specialized knowledge is needed for effective data management. Businesses can access the concentrated expertise and experience of data management providers by outsourcing their data management needs. It can be difficult for businesses, especially smaller ones with fewer resources, to keep up with the most recent industry trends and technologies internally. These providers, however, are committed to doing so.

Businesses can benefit from the experience and specialization of data management providers by outsourcing data management. Outsourcing will increase the quality, accuracy, and dependability of the data. For instance, while adhering to stringent regulatory requirements, a healthcare organization may need to manage sizable volumes of patient data. Data management can be outsourced to a specialized healthcare data management provider. They can ensure that data is managed in accordance with industry standards like HIPAA and that data quality is maintained through data cleansing and validation procedures. This can aid organizations in making decisions based on accurate and trustworthy data, enhancing operational effectiveness and providing strategic insights.

3. Outsourcing data management is flexible.

In response to business expansion, shifting market conditions, or technological advancements, data management needs can change quickly. Businesses can scale up or down their data management capabilities in accordance with their needs and requirements by outsourcing data management. Data management companies are prepared to deal with a range of data volumes, speeds, and types and can modify their services accordingly.

For instance, seasonal changes in customer data and sales may affect a retail business, necessitating temporary increases in data management resources during busy times of the year. Without the need for businesses to invest in additional resources or infrastructure that may go unused during off-peak seasons, outsourcing data management can offer the scalability needed to handle the increased data volume during peak periods and scale back during low seasons.

4. You'll stay more focused on your core business activities.

Data management can be a time-consuming and resource-intensive function, requiring significant attention to detail and expertise. By outsourcing data management, businesses can free up their internal resources and focus on their core business activities. This can result in improved operational efficiency, productivity, and innovation.

For instance, seasonal changes in customer data and sales may affect a retail business, necessitating temporary increases in data management resources during busy times of the year. Without the need for businesses to invest in additional resources or infrastructure that may go unused during off-peak seasons, outsourcing data management can offer the scalability needed to handle the increased data volume during peak periods and scale back during low seasons.

5. Data secured; risks mitigated.

In data management, data security and privacy are critical considerations. Outsourcing data management to a trustworthy provider can help reduce the risks of data breaches, data loss, or unauthorized access. To ensure the confidentiality, integrity, and availability of data, data management providers frequently implement robust data security measures. This included encryption, access controls, and regular data backups. Furthermore, data management providers are familiar with industry regulations and compliance requirements. Some examples of them are GDPR (General Data Protection Regulation) and CCPA (California Consumer Privacy Act). They can be complex and time-consuming for businesses to manage in-house. Outsourcing data governance can assist businesses in ensuring compliance with applicable data protection regulations. This lowers the risk of legal and financial penalties associated with data breaches or noncompliance.

  

Real-life Example: How We Helped an eCommerce Business with Data Validation

One of our clients was an eCommerce business that carried thousands of fashion brands across the globe. They had seen a sudden and significant rise in their sales as fashion enthusiasts switched from offline to online shopping due to the pandemic. Consequently, the data they needed handled was rather large and required expert and specific sorting and validation.

The client approached Flat Rock Outsourcing for a solution. They requested that we validate their product data and ensure that it was accurate, up-to-date, and compliant with platform-specific standards and strict management criteria. The business also needed that we collect additional data from external sources to enrich their product information. In the long run, the eCommerce company was looking for an outsourcing partner that would be able to cover the ever-expanding vastness of data and keep the quality high.

We accepted the challenge and assembled a dedicated team of data operators for the project. The team underwent training right away and started working for the client almost immediately. We delivered the validated data in a structured format that was compatible with their website.

The result was remarkable: as our team of experts handled a few hundred content pieces a week, the initial number went up 50 times in just a few months. Their product information was more relevant and reliable for their customers, which increased their trust and loyalty!

 

Key Takeaways

Effective data management is critical for organizations to remain competitive and achieve their strategic objectives in today's data-driven business landscape. Outsourcing data management can provide several benefits, including cost savings, expertise, scalability, increased focus on core business activities, and risk reduction. Businesses can leverage their knowledge, experience, and resources by partnering with a specialized data management provider. The companies will find that outsourcing optimizes their handling operations and make informed decisions based on accurate and reliable data.

    

However, it is critical to carefully assess the suitability of outsourcing data management based on the unique needs and requirements of your company.

 

Looking for expert help with your data management? Our experienced team is here to help. Get in touch with us for a discovery call where we can learn more about your needs and provide a tailored approach. With several accreditations, including ISO 9001, ISO 27001, ISO 20000, and Microsoft Gold Partner status, we have a proven track record of delivering exceptional results for our clients. Since 2008, we've successfully handled projects for more than 200 clients and have received numerous awards. Contact us today to learn how we can assist you with your data management needs.