Outsourcing Business Analytics
In the past decade, the prosperity of outsourcing business process operations has motivated numerous business firms to commence outsourcing their high-end knowledge dispensation work which comprises data analytics to both accomplished and experienced firms. Data analytics entails solving intricate business-oriented issues by analyzing the available information and coming up with constructive business insights. Consequently, firms that have embraced analytics outsourcing have continued to enjoy the many benefits that come with it. For instance a good number of business organizations, with the help of analytic outsourcing, are now able to leverage the power of data to engender valuable insights and initiate premeditated business decisions with reduced capital expenditure and minimum human capital risks; abrupt resignation of skilled personnel (Lacity & Willcocks, 2014).
Other than the aforementioned benefits, it has been established that analytic outsourcing plays an extremely important role in operational efficiencies, improved service quality, cost saving and accessibility to highly talented workforce in an organization (Lacity & Willcocks, 2014). In fact analytic outsourcing is expected to undergo momentous growth in the near future as most if not all international organizations are embracing it to foster business growth.
Analytic outsourcing has continued to experience tremendous growth in the business world due to various reasons which include: -
i. Focus on core business
Business organizations that outsource their non-core but equally important data analytic processes get the opportunity to have excellent work done within a short time frame and with minimum expenses than they would have had they hired analytic experts or trained their employees for the same task (Hope, Player, 2012). Essentially, analytic outsourcing just like any other form of knowledge process outsourcing aids business organizations in meeting their analytic needs without necessarily initiating new processes.
ii. Access to specialists
Unlike other processes, analytics is extremely specific in temperament and needs characteristic data analytics abilities and methodical mindset for it to thrive. Entrepreneurs therefore opt to entrust such tasks to specialists who have the skills or are suitably trained and can work hand in hand with other arms of their organization as an in-house strategic planning team (Hope & Player, 2012).
iii. SaaS based technology
Analytics outsourcing also helps business organizations do away with expenses incurred in investing in data analytics technologies and infrastructure. A good number of analytics solutions are currently SaaS based and therefore allow all organizations irrespective of their sizes to take advantage of the numerous benefits of embracing analytics outsourcing (Hope & Player, 2012).
The numerous researches carried out on analytics outsourcing have established beyond doubt that having gigantic data capabilities aids organizations in becoming more efficient and enhances the overall business competitiveness. Organizations with elevated data analytics capabilities have as a result innovated ways of building long term advantages. For instance FedEx Corp has continued to exploit its analytics professional team to maintain a competitive advantage via improved revenues and lower costs. Wal-Mart Stores Inc. has also employed its renowned analytics team to ensure success (Blacharski, 2009).
Coming up with analytics teams, however, is not as easy since most companies and organizations lack the in-house information and the know-how required to assemble an analytics team. Furthermore, the labour market for analytics professionals has grown exponentially tight. This has prompted most business origination to consider outsourcing their analytics activities. Nevertheless, selecting analytics providers and configuring an efficient working association that delivers value require human resource managers to understand what they are after and the probable risks involved (Hope & Player, 2012).
Presently, there is limited research on corporate use of analytics Business Process Organizations (BPOs). However, the extensive research information on IT outsourcing and other BPO operations conclude that in a fast-growing market, outsourcing allows companies to augment flexibility by making fixed costs variables which consequently enhance other success factors. The same research literature confirms that the prosperity of BPO partnerships relies on such factors as the availability of sound infrastructure and connectivity, appropriate contingency planning, the distance amid onshore and offshore hubs, and enough language and technical skills. Prospective customers on the other hand ought to do a thorough research prior to the implementation of the project with the management communicating fully the vital resolutions to all the affected parties in the organization. The potential customers must also be very keen not to loose their proficiency or their core Intellectual Property (IP); this is done by identifying which competencies are core and which can be done effectively by an offshore provider (Blacharski, 2009).
The report from a research conducted on four multinational companies in India using more than one offshore analytics BPOs and four offshore analytics BPOs operating in India revealed that some companies had analytically superior skills while others had analytically challenged skills. The analytically challenged companies viewed analytics BPOs as a means of acquiring training and resources required to manage and implement their analytics and as a way of obtaining vital insights. The analytically challenged companies were of the view that investing in an in-house analytics team is ideal but extremely expensive. They therefore preferred outsourcing their business process operations. On the other hand the companies viewed to have analytically superior skills strive to expand their internal analytics capabilities and only outsource offshore BPOs to take care of low level analytics which include reporting on automated jobs like monitoring maintenance programs (Hope & Player, 2012).
The findings of this research paper and other related researches conclude that outsourcing business processes is extremely important and beneficial to business organizations. The exercise as discussed earlier helps the young and growing organization acquire expertise and services that would otherwise be too expensive to invest in. such organizations are now capable of offering their services competitively and effectively at low costs. Outsourcing business process operations have also eliminated human capital risks to both the analytically superior and the analytically challenged organization such that whenever a highly skilled employee quits his or her employment prematurely, there is always the option of outsourcing before a replacement is done. Just like any other form of knowledge process outsourcing, analytics outsourcing solves the problem of initiating novel processes for a particular task eliminating the expenses that come with the exercise. It is therefore prudent for any business organization; whether analytically superior or analytically challenged to embrace outsourcing business process operations when need arise.
References
Lacity, M., Burgess, A., & Willcocks, L. (2014). The Rise of Legal Services Outsourcing: Risk and Opportunity. London: Bloomsbury Publishing.
Hope, J., & Player, S. (2012). Beyond performance management: Why, when, and how to use 40 tools and best practices for superior business performance. Boston, Mass: Harvard Business Review Press.
Blacharski, Dan W. (2009). Superior Customer Service: How To Keep Customers Racing Back To Your Business? Time-Tested Examples From Leading Companies. Atlantic Publishing Group.
