Advantages of Outsourcing Data Management Services
For businesses in data-intensive industries to make decisions quickly, they need to invest in support systems that help them make well-informed, important decisions. Energy, commodities, agriculture, shipping, mining, insurance, finance, renewable energy, oil and gas, and utility businesses all need data support systems that give them high-quality and up-to-date information. This information can directly affect the decisions you make because it affects how your business runs.
Putting together the infrastructure needed for an in-house data management system that gives you a steady stream of well-organized important data is not easy. Adding managed data services could bring a number of benefits that can help you and your organization deal with problems that may come up when building data systems.
This post will review the benefits of outsourcing data management services for your company. First, we’ll talk about the problems with data management that can slow down your organization and the basics of whole-picture data management solutions.
Read more: Why do businesses outsource analytics?
The Primary Data Management Challenges
The most significant challenges for your organization are how it captures, stores distributes, and analyzes data. Let’s take a quick look at the five issues your company should address:
Data Automation:
Your organization can obtain critical data from a variety of sources, including both internal and external data vendors. It generates multidimensional datasets, with each data stream supplying its standards. Handling massive amounts of data with disparate standards has become a significant challenge. Adequate data automation measures can reduce the time and resources required to acquire, organize, and use critical data.
Volume:
According to an IDC study, 1.8 trillion gigabytes of data were produced in 2011, which is expected to grow 50 times by the end of 2021. The sheer volume of data produced and collected necessitates extensive monitoring and validation, necessitating intelligent data management systems capable of bringing order out of chaos. You can gain more intelligence and competitive advantage if your organization has access to a data management system capable of processing large amounts of data.
Inconsistencies:
Working with data vendors presents several challenges, including inconsistency. Data vendors are also working to evolve and improve various aspects of their businesses, which necessitates changes to data formats or periodic downtimes to implement those changes. Short-notice format changes or no-notice announcements can cause problems for your company.
Furthermore, vendors may revise their data if they discover incorrect initial values. Rechecking your vendor’s data sources to keep track of revisions regularly may result in the data vendor flagging your organization and eliminating a valuable data stream. Working with an experienced managed data services provider can assist you in overcoming this challenge.
Data Analysis:
Analyzing and relying on vendor data that is inconsistent or inaccurate in general can be disastrous for your organization. Spending a lot of money on over-analyzing inaccurate data can hurt your company’s decision-making systems, mainly if the experts you’re working with can’t spot any irregularities.
Intelligent data management systems that can navigate complex data and generate meaningful analyses can help you reduce the time and labor required to remove inaccuracies and maximize the benefits of accurate and clean data streams.
Integration:
The ultimate goal for organizations that use data management systems is to collect diverse datasets and integrate them into business intelligence tools, trade and risk applications, custom applications, and other operational aspects. For successful and effective integration into your business processes, the data collected by your organization must meet the requirements of your internal systems.
The ideal data management solution should offer a wide range of integration points, allowing you to use the necessary technology to make sense of all the data and make meaningful and timely decisions.
Understanding the Principles of Holistic Data Management Solutions
Effective and intelligent data management systems can address these issues. Remember that a data management system does more than just collect data. It organizes and analyzes multifaceted datasets so your organization can use them to make timely and effective decisions.
The fundamentals of holistic data management solutions include entire workflows for:
- Data Capture: A complete data management system captures data in real-time, all the time, taking data volume into account.
- Data Validation: It should validate the enormous amount of data to ensure that it is complete and accurate.
- Administration: While organizing data, it should provide entitlement management to grant, resolve, enforce, revoke, and administer fine-grained access entitlements.
- Viewing Data: It should provide user-friendly but powerful ways to view data effectively, presenting it in a configurable visual format based on necessity.
- Third-Party Analytical Tools: To further validate the data, it should collaborate with third-party analytical tools.
- Process Automation: It should automate data processing to reduce resource-intensive business processes, increase accuracy and security, and be more transparent to facilitate auditing and accountability.
- Data Distribution: It should provide multiple integration points and adequate measures to move data around the organization for better data use.
The Advantages of Outsourcing Data Management Services
Understanding the challenges of data management for organizations and the fundamentals that can be used to create a compelling and comprehensive data management solution may give you a clearer picture of the benefits of outsourcing data management services.
According to Gartner, 90% of corporate strategies will explicitly mention information as a critical asset for organizations, and analytics will become a required competency.
The right managed data services can accumulate, organize, analyze, process, effectively distribute, and integrate massive volumes of multifaceted datasets, which provides you with several benefits, including:
1. Scaling Up Your Organization
An effective managed data service solution can free up enough resources to rapidly expand output and scale up your organization by eliminating data management’s help- and labor-intensive aspects.
Transparent fee structures with data management solution providers allow you to better track and control your organization’s data management expenses. Not worrying about unforeseen expenditures lets your team focus on acquiring in-house talent and resources to help your organization grow.
2. Enhanced Data Security
Several industries require sensitive data storage and sharing, including energy, commodities, agriculture, shipping, mining, insurance, finance, renewable energy, oil and gas, and utilities. Failure to meet these compliance standards can result in excessive fines.
Failure to meet compliance standards exposes your organization to data breaches. A data breach can cost as much as $4.24 million, according to a 2021 report from IBM and the Ponemon Institute. You can avoid these issues by outsourcing data management to experts who understand how to identify and implement the necessary data security.
3. Meet The Latest Tax Requirements
Compliance is more than just meeting data security standards. Your organization must also comply with the most recent tax regulations. Another advantage of outsourcing data management services is avoiding tax penalties and discovering new tax incentives.
4. Making Strategic Decisions on Time
Making structural changes in your organization can be difficult in the advanced stages of its development. Another benefit of outsourcing data management services is creating a clear road map for timely decision-making to implement structural changes.
5. Comprehensive Security In The New Normal
Since the implementation of COVID-19, a remote workforce infrastructure has become the new normal for organizations across most industries. The convenience of a remote workforce comes with the challenge of enforcing better security measures to protect data at work and elsewhere.
Managing data security in the office gives you direct control over devices and wireless networks, but what about securing data while ensuring safety in other locations? Your remote workforce is empowered by the right managed data service provider, who provides adequate data security through encryption, threat management, and virtualization as needed.
6. Streamlining Administration
Administrative function automation has quickly become the norm across all industries. Understanding your options and developing an effective strategy for scheduling and sharing information via everything from voice assistants to integrated data centers is critical. The right managed data service provider can facilitate a system to automate and streamline administrative processes.
7. Staying Ahead Of The Curve
Outsourcing data management services to the right managed service provider also entitles your company to their expertise in a rapidly changing environment. New technological advancements and features to innovate business processes continue to emerge. Working with managed data service providers who stay on top of the latest trends allows you to keep track of innovative new technologies and features.