Throughout the course of business, the average company creates a massive amount of information. Through data analytics outsourcing, your company can extract extremely valuable insights from the details you collect and the metrics you track, from sales numbers to website impressions to customer return rates.
It can be challenging to organize and store all of these facts and figures, let alone analyze them and use the insights to enhance your operations. Working with a business process outsourcing (BPO) solution to outsource your data analysis can give you a valuable perspective on your company’s operations, helping you refine your strategic plan and make data-driven decisions that enhance your efficiency, profitability, and growth potential.
What Is Data Analytics Outsourcing?
Data analytics outsourcing is the process of hiring a third-party company to review the information you collect about your business to look for patterns, draw conclusions, and make suggestions to help guide your business decisions. It encompasses the entire process of analyzing business records, including:
- Collection: Your BPO partner will identify your company’s most valuable sources of information and then gather and store the raw information.
- Cleaning: The cleaning or cleansing process involves organizing data, removing outliers and duplicates, reformatting datasets, and ultimately making your business details easier to read and understand.
- Analysis: The actual analysis phase involves using different models to extract insights from your datasets, identify potential cause-and-effect relationships, and highlight trends in your information.
- Visualization: BPO vendors will create diagrams, graphs, and other visualizations to help explain their analysis. This will ensure you can share their insights with stakeholders and turn their discoveries into an action plan.
Outsourcing with BPO call center analytics provides critical support to sales-driven companies, which are always looking for ways to increase sales and become more profitable. It can help you better understand customer behavior, refine your pricing models, get more out of your advertising, and overall leverage business details to drive growth.
The Pros and Cons of Outsourcing Data Analytics
Breaking down the benefits and challenges of outsourcing analytics can help you determine if it’s the right strategic solution for your business. There are several advantages to working with a BPO team to analyze your business information, including:
- Access to Valuable Expertise: Data analysis skills are in high demand, and it can be costly to employ an in-house expert or hire a consultant. Outsourcing can give you instant access to highly trained experts who can get the most out of your datasets.
- Enhanced Cost Efficiency: Outsourcing is an affordable way to generate valuable insights without hiring a full-time internal team. BPO can improve your company’s efficiency by helping you focus on your core operations and providing analyses designed to enhance your decision-making and drive sales.
- Simple Scalability: BPO organizations will have access to complex algorithms and models to handle large datasets, making it easy to scale your operations as you track more metrics and gather more information.
- Reliable Compliance Support: Qualified BPO providers will already have strict security and compliance standards in place, so you can trust that your business is following best practices for data privacy.
- Data-Driven Decision-Making: With the support of a third-party analytics team, you can ensure that each business decision you make is fully supported by logic and historical patterns, allowing you to optimize your operations fully.
Despite its advantages, there are a few potential cons to consider before you hire an outsourcing provider:
- Improper Alignment: If your vendor isn’t fully aligned with your business goals, the insights they generate may not be useful to your company.
- Lack of Control: When working with a third party to handle your information, you may not have full control over your data and how it’s processed. Setting detailed expectations with your provider can help alleviate any concerns related to this lack of control.
- Potential Security Concerns: If your vendor has a security breach, that could directly impact your business and your clients. It’s important to carefully vet your provider to ensure they have a strong data privacy strategy.
Data Analytics Resource Outsourcing Models To Explore
There are several models businesses use to review the data they collect. Here are the four main types of analytics you might expect from your outsourcing provider:
- Descriptive analysis: Reviews historical information to describe an event or situation, such as the number of sales you made or which product had the most returns.
- Diagnostic analysis: Looks for the potential cause of different situations.
- Predictive analysis: Assesses past situations and other factors to determine the likelihood of various outcomes.
- Prescriptive analysis: Uses advanced algorithms and techniques to suggest the best decision to make in different business situations.
Selecting the Right BPO Partner
There are many data analytics outsourcing companies to choose from, but not all BPO providers can offer the high-level insights you need. When selecting an outsourcing partner, it’s critical to evaluate a wide variety of factors, including pricing, security protocols, employee training, and provider availability. You want to ensure that your partner will prioritize your privacy, walk you through their insights, and provide you with access to experts with industry-specific knowledge.
During the research process, talk to providers about the potential use cases for their analytics and determine if they align with your company’s short-term and long-term goals. Because you always have new information streaming into your business, record management outsourcing is often an ongoing process, so it’s important to discuss both the current state of your company and the potential increase in scope as you grow.
Keeping Your Data Secure When Outsourcing
Security is one of the utmost concerns when it comes to outsourcing analytics. For a vendor to analyze your business details, they naturally need to have access to your databases, which can include customer information, financial intel, and more. They’ll also be running those numbers through their own algorithms and analytics models, so choosing a vendor dedicated to keeping their systems secure is critical.
Research shows that 64% of organizations manage at least a petabyte of information, which means outsourcing could expose a massive amount of valuable details if your vendor doesn’t have secure internal systems. Seek out trusted providers with processes in place to uphold security compliance standards and ask about their processes for handling breaches and other privacy concerns.
Tap Into the Full Power of Your Data
Data analytics outsourcing provides you with the expert insight you need to make informed decisions about your business practices, helping you boost sales and pursue strategic growth. By processing your records at scale and offering unbiased insights, BPO partners can maximize the impact of your business information. Choosing a qualified BPO organization specializing in secure information management will give you access to expert data-driven insights without investing in an internal analysis team.
Here at Confie, we understand the infinite value of your business information. We’ll partner with you to determine what you want to learn from your data and then build an in-depth strategy that’s customized to your organization.
Call us at 800-684-2276 or connect with us online to get started.
