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The rapid growth of business intelligence (BI) and data analytics in global markets highlights the increasing dependence on strategic insights for data-driven decisions. These markets could reach $279.31 billion by 2030.
With companies accumulating massive volumes of data, sound data management is critical to staying competitive. Outsourcing analytics and BI through business process outsourcing (BPO) is crucial for companies to leverage their data fully. BPO offers access to advanced expertise, cost efficiency, and scalable solutions, driving growth and innovation.
This article explores how outsourcing analytics and business intelligence enhance decision-making. Keep reading to learn the advantages of BPO!
Cost efficiency and budget control
What is BPO for analytics and business intelligence? It refers to contracting a third party to manage data analysis, reporting, visualization, or BI strategy tasks. This approach enables businesses to leverage BPO firms’ specialized talent and resources to generate valuable insights, enhance operational performance, and accelerate decision-making.
Outsourcing analytics and business intelligence offers financial benefits. Developing and maintaining an in-house analytics team incurs costs in talent acquisition, training, infrastructure, and technology investments. BPO replaces these expenses with fixed service fees, allowing you to manage operating expenses more effectively.
BPO companies often operate in regions with lower labor costs to offer solutions at a fraction of the cost of paying full-time in-house teams. For instance, a data analyst’s average annual salary in the United States is about $78,347. This is 12 times what data analysts in the Philippines cost.
BPO companies also handle large amounts of work on behalf of multiple companies. This translates to lower client service rates and more cost savings for your company!
Scalability and flexibility in services
Outsourcing analytics and business intelligence empowers organizations to concentrate on core competencies while entrusting data-related tasks to external experts. It also optimizes resource allocation and aligns capabilities with changing business objectives.
With fluctuating business needs and data volumes, service providers can swiftly adjust resources to meet demand. You can only rely on your BPO partner for the right level of outsourced business intelligence and analytics support, especially for long-term infrastructure investments.
Access to specialized expertise and skills
The U.S. is experiencing a talent shortage in data science. In a survey conducted by Upwork, businesses find roles in data science and analytics the hardest to hire for. The BPO industry allows companies to engage highly skilled data scientists and BI analysts to manage data.
BPO companies have access to a global pool of specialized talent, allowing you to tap into the necessary skills that are cost-prohibitive to develop internally or source locally. Some of the roles to outsource include:
- Data engineers design and build scalable data pipelines to manage and integrate data from various sources for quality and accessibility.
- Statistical analysts apply advanced statistical techniques to analyze complex datasets, providing actionable insights and forecasting trends.
- Machine learning engineers develop and use machine learning models to solve business problems, enhancing predictive analytics and automation.
- Data visualization specialists create interactive dashboards and visual reports to present data insights clearly and effectively for decision-making.
- Business intelligence consultants advise on BI strategy, implement BI tools, and optimize reporting to align data analytics with business objectives.
Faster implementation of analytics solutions
Implementing analytics solutions in-house can be time-consuming and resource-intensive. Outsourcing analytics and business intelligence accelerates this process by leveraging the service provider’s expertise and infrastructure.
BPO firms can efficiently design, develop, and deploy analytics solutions for faster data-based decision-making.
Here are the main components of decision-making processes your BPO partner can help with:
- Data collection: collecting accurate and valuable information from various sources, including internal IT systems and external sources
- Data analysis: using statistical and analytical methods to get actionable insights
- Visualization: creating interactive dashboards and reports to convey data
- Decision-making: using insights to make informed and intelligent business decisions
- Monitoring and evaluation: reviewing outcomes constantly and improving methods depending on them
By leveraging external workflows and enabling swift, data-driven decision-making, you can bypass the steep learning curve of building an in-house team’s capabilities, accelerate the implementation of analytics solutions, and drive immediate business impact.
Use of advanced tools and technologies
Technological advancements drive BPO in data analytics. Outsourcing firms invest heavily in technology, infrastructure, research, and development. Through BPO partnerships, you can access cutting-edge tools and platforms without making upfront investments.
Below are examples of innovations that empower outsourced BI solutions:
- Artificial intelligence (AI and machine learning [ML. AI and ML enhance predictive analytics, automate processes, and uncover patterns in data that drive strategic insights.
- Cloud-based analytics. Cloud platforms allow for scalable and flexible data storage, processing, and analysis.
- Real-time Analytics. Real-time data processing enables timely decision-making and immediate response to market changes.
- Data integration and management. Advanced tools integrate disparate data sources seamlessly and improve data governance.
- Advanced visualization. Sophisticated tools help create interactive dashboards and dynamic reports for a deeper data understanding and interpretation.
Enhanced decision-making capabilities
Outsourcing analytics and business intelligence helps organizations make informed decisions by offering a fresh perspective. External teams uncover hidden patterns and provide actionable insights directly affecting business outcomes through their specialized data analysis and interpretation expertise.
Venture Beat reports that 84% of marketing executives find it challenging to make data-driven decisions despite the wealth of consumer data accessible. Outsourcing providers use advanced analytics techniques and tools to help decision-makers identify new opportunities, optimize operations, and mitigate risks effectively.
Fundamental techniques and tools include:
- Predictive modeling: forecasting trends and behaviors using statistical methods
- Data mining: extracting valuable patterns and insights from large datasets
- Artificial intelligence: automating decision-making and enhancing data analysis through advanced algorithms
- Machine learning: improving predictions and processes over time by applying models that learn from data
- Natural language processing (NLP): analyzing and visualizing human language data to gain meaningful insights
- Advanced statistical analysis: employing complex statistical methods to uncover trends and relationships in data
- Big data analytics: revealing hidden patterns and correlations in large complex datasets
In 2023, 39.5% of businesses adopted big data to manage datasets as a business asset, while 59.5% implemented big data technology to drive innovation through data.
Continuous support and maintenance
Ongoing monitoring, maintenance, and support are crucial for effective analytics. Outsourcing provides dedicated teams for these tasks so internal teams can focus on strategic initiatives. Service providers offer support packages that include data refreshes, performance optimization, and troubleshooting.
This proactive support helps mitigate risks, maximize system uptime, and ensure the accuracy and reliability of insights. By partnering with an experienced outsourcing provider, your organizations can leverage analytics for growth.
Factors to consider when choosing a BPO partner
The success of data analytics outsourcing depends on the right BPO partner. Consider the following questions to make sure you choose well:
- Is the partner trustworthy? Evaluate the partner’s reputation and reliability.
- How is data managed? Understand their data handling practices and security measures.
- What is their track record? Check references and review their history of successful projects.
- How is data breach risk minimized? Assess the strategies they employ to prevent data breaches.
These factors can help you choose a BPO partner that meets your requirements and guarantees efficient, safe data management. Deciding whether to collaborate with an onshore or offshore BPO provider is also crucial. Due to its advantages in location and cultural alignment, onshore outsourcing accounted for 45.2% of the market in 2023.
The bottom line
Outsourcing analytics and business intelligence can yield significant returns on investment. By carefully evaluating your organization’s specific needs and goals, you can select the right outsourcing partner to help you harness the power of your data and achieve your business objectives.
Let’s connect to discuss your business needs and explore how outsourcing analytics can drive your success.
