How to outsource data management services

When you reflect on business assets, what springs to mind? Cash? Property? Equipment? Vehicles? All are valid responses but there is a modern-day item that is fast becoming one of the main assets for businesses and occupying the minds of executives, managers and owners. It can help identify opportunities, mitigate risks and improve operational efficiencies. It is crucial to better decision-making and gaining competitive advantage. 

For many businesses, it is also overwhelming.

We speak, of course, of data and given the above, it is no surprise that organizations are increasingly investing in its optimization. Respected consultancy Gartner has found that poor data quality costs organizations an average $12.9 million each year¹, with businesses that fail to maintain adequate systems not only in danger of making inaccurate decisions but risking the future of their operations.

Quality data management is essential in the modern business world, hence why the ability to gather, organize, verify, process and easily access such material is at the top of more boardroom agendas. It is also inspiring a growing number of businesses to seek external support in managing their data. Partnering with an offshore provider that has expertise in data management can be a game-changer and this article will expand on that theme by highlighting data challenges and trends, exploring benefits of outsourcing and sharing tips for a successful data management strategy.

Data management challenges are a fact of life for many businesses, with one survey revealing 76% of organizations find it difficult to understand the information they collect². Here are just a handful of the obstacles that managers have difficulty navigating in the data space.

• Duplicate or incomplete data: data is a blessing for businesses but what happens when they discover they have recorded the same data more than once? Given the temptation for organizations to employ multiple business processes and software, this occurs more than you would think. On a similar note, inaccurate or incomplete data can cause managers to wonder if it was worth collecting such information in the first place. This is particularly common when extensive data is entered manually as the likelihood of human error increases.
• Data overload: some businesses live by the theory that the more data they collect, the more insights they will gain. However, collecting terabytes of data can be counterproductive when it comes to organizing so much information. After all, the whole point of collecting data is to pinpoint actionable insights and that can be extremely difficult when staff find themselves struggling to select or spot trends.
• High costs: like any business function, there is a financial reality to pursuing a data management strategy. Collecting data, storing information, employing analysts – it all costs money and the more that figure grows, the more chance it can become a bridge too far for businesses. Executives and managers often find themselves walking a fine line between their thirst for data and how much it costs to quench that thirst.
• Unqualified talent: the days when data management could be entrusted with an admin officer or executive assistant are over. It is a specialist field and many organizations do not employ enough qualified people to deliver the results they want. That leads to a choice – hire new staff with specific skill sets or train current employees to meet the need – and both those options will mean a delay to gaining data insights.
• Data cataloging: when financial giant Capital One asked data management decision-makers to nominate a major challenge they faced, almost 80% of respondents suggested cataloging data³ and that is a concern given it impacts their understanding of what data they have, how the data is used and who owns the data. As the survey’s authors wrote: “Many organizations are lost in the weeds of their data sets and services and need quicker access with a low-code compass to find their way through.”
  
  

Outsourcing data management is a proven way to deliver benefits including:

• Sustainable growth: tapping into data insights allows businesses to pursue growth opportunities but that can be negatively offset by the investment required to manage all that information. By partnering with outsourcing providers in offshore locations such as the Philippines, businesses can reduce labor costs by up to 70% and enhance their long-term prospects by dedicating those savings to sustainably growing their operations.
• Improved data accuracy: collecting data is one thing. Ensuring it is clean data is another. Outsourcing providers that specialize in data management employ people and systems that prioritize accurate data. Rather than rely on ad hoc processes overseen by staff juggling other tasks, there is a lot to like about working with hard-working teams with proven expertise in what is an increasingly specialist field.
• Scalability: data management is a growth area and many businesses have been caught out when they find their needs are suddenly outweighed by their internal resources. Outsourcing data management allows managers to quickly and seamlessly access additional team members without the headaches of recruitment and training as that responsibility lies with their offshore partner. Similarly, outsourcing eases the financial and logistical burden of reducing staff numbers when demand falls.
• Better productivity: improving operational efficiency is a corporate goal for a reason and seeking external assistance is a proven winner for achieving it. Between superior systems, dedicated teams and expertise in automating repetitive tasks, partnering with outsourcing providers has allowed countless businesses to realize the benefits that come with boosting data management productivity.
• The ability to focus on core tasks: for most businesses, data management is an important but separate function to their key deliverables. While some managers choose to hand the role to already stretched staff, savvy organizations opt to work with offshore specialists and allow their in-house teams to dedicate their attention to more valuable and rewarding work. Not only does that help with accuracy and productivity but boosts morale among their people.

Outsourcing providers in countries such as the Philippines are well-versed in building dedicated data management teams that take care of everything on the ground. Roles include:

• Data architects
• Data analysts
• Data compliance officers
• Data engineers
• Data entry specialists
• Data governance analysts
• Data management specialists
• Data quality analysts.

Source: Enterprise Data Management Market Size | CAGR of 11.2%

There are several steps businesses can take to enhance their chances of achieving success with their data management solution. These include:

1. Identify your business goals: to help your offshore provider know what data is needed to boost your organization, it is crucial to set business goals that they can aspire to. For example, reducing customer churn will require an entirely different set of numbers to those needed to help build one’s consumer base. Being specific about data is just as important as collecting it.
2. Focus on quality data: a business obviously requires a lot of data to spot trends and opportunities but there is such a thing as having too much data. Collecting an abundance of unhelpful or inaccurate information will only distract your team. Work with your outsourcing provider to help them compile a bank of actionable data and, as importantly, ensure its accuracy to avoid wasted efforts.
3. Ensure limited access: quality outsourcing providers know the importance of ensuring their clients’ data is only exposed to team members who need to see it. Ask questions about potential providers’ restriction levels as not everyone should have equal privileges when it comes to accessing one of your most precious assets. The best providers will have no hesitation in having such discussions.
4. Prioritize data security: this is understandably one of the most common concerns for businesses exploring data management outsourcing. Allowing access to confidential and sensitive information to external parties is a big step for some organizations, particularly smaller operations, but the best outsourcing providers often have stricter data security protocols than the clients they serve. Once again, insist that your chosen partner has a proven track record.
5. Communication: like any relationship, the best outsourcing partnerships are founded on quality communication. Look for a provider that not only shines when it comes to managing your data but with how it communicates. From team leaders to regular analysts, outsourced data management staff should be quality communicators. Remember some destinations are stronger in this area than others, with the likes of the Philippines boasting a workforce with excellent English proficiency⁴.

Conclusion

No matter the size of an organization or the breadth of its data management needs, there is an outsourcing provider for every business. With one study tipping the sector to reach $513 billion by the end of 2030 – growth of 16% per annum⁵ - it has never been more important to consider the benefits of a strategy that involves outsourcing.

Around-the-clock business support is a must for many modern businesses but there is one challenge – resourcing. Discover how outsourcing can make 24/7 customer support a reality for organizations of all shapes and sizes.