In today’s data-driven business environment, harnessing the power of data is more important than ever before. Business Intelligence (BI) is no longer a luxury for organizations – it has become a necessity. For companies looking to gain an edge, outsourcing business intelligence analytics is a strategy worth considering.
What is Business Intelligence Analytics?
Business Intelligence Analytics refers to the practice of collecting and analyzing business data to extract insights and support decision-making. It encompasses a range of tools, systems, and methodologies that allow organizations to collect data from internal and external sources, prepare it for analysis, develop, and run queries against the data, and generate reports, dashboards and data visualizations to make the analytical results available to decision-makers, as well as operational workers. For instance, an e-commerce business might use BI to analyze customer buying patterns and adjust marketing strategies accordingly.
The Value of Outsourcing BI Analytics
According to a study by MarketsandMarkets, the demand for outsourcing BI analytics is expected to grow from USD 23.1 billion in 2020 to USD 33.3 billion by 2025, at a CAGR of 7.6% during the forecast period. This increasing propensity towards outsourcing is driven by a host of compelling reasons.
Access to Expertise: Outsourcing enables businesses to tap into a pool of experts with deep BI skills and knowledge. This is particularly beneficial for organizations that are not equipped with an internal team of data analysts.
Cost-Effective: The cost of building and maintaining an in-house BI team can be significant. Outsourcing BI eliminates the need for this heavy investment.
Faster Implementation: Leveraging the expertise of specialized vendors, businesses can deploy BI systems much more quickly than managing the process internally.
Agility: As your business grows and changes, an outsourcing partner can easily scale up or down to meet your needs.
Addressing Concerns over Outsourcing
Despite the many benefits of outsourcing BI analytics, businesses may have some legitimate concerns. Chief among these are security and control. With sensitive company data leaving the confines of the organization, many executives worry about leaks or breaches. To address this, businesses should select outsourcing partners with a robust security approach, and set clear data handling guidelines. Additionally, ongoing communication and regular performance metrics can help maintain a sense of control over the outsourced function.
Experts and Statistcs
For businesses needing further conviction, industry experts and research findings paint a convincing picture of the benefits of outsourcing BI analytics. According to a study by management consultancy Lenati, 70% of businesses have increased their spending on outsourced BI. Moreover, Gartner analyst Kurt Schegel observes that businesses are preferring outsourced BI, as it results in more efficient operations and enhanced decision-making, which can lead to improved profitability.
In conclusion, outsourcing business intelligence analytics provides organizations with several strategic benefits. Despite some valid concerns, smart planning, and partnership choices can mitigate most risks. Given the fast growth and digital transformation happening in today’ businesses, this strategy can become an important driver of competitive advantage, by providing access to expert skills, improving efficiency, and getting actionable insights from your data. The importance of having a well-defined and efficient BI strategy can hardly be over-emphasized, and outsourcing could be the key to achieving it.
