Organizations are looking for outsourcing and resource augmentations for various reasons.
An outsourcing or resource augmentation mode provides the organizations the necessary agility to use the best resources for a certain project for a certain period of time.
Ever-changing Technology Ecosystem
The technology arena related to data is going through a paradigm shift every day. New technologies are getting invented and the shelf lives are often smaller. Thus, the skillset required to manage data and analytics might rapidly become obsolete. Organizations often face challenges to maintain in-house teams in such a disruptive and dynamic technology ecosystem.
There may not be enough quantum of work for each expert in the project to be utilized fully during the project life cycle. Thus, maintaining an in-house team might not be an efficient strategy from a resource utilization perspective, irrespective of the fact that all these experts are needed in the journey at some stage or the other.
Return on Investments (ROI)
To run a data project effectively, it is important that all the steps are properly synchronized to have a strong ROI.
Lower Operational and Labor Costs
A well-executed offshore development project contributes to 50-60% savings on the overall production budget and time-to-market. Lower operational and labor costs are among the primary reasons why companies choose to outsource. When properly executed it has a defining impact on a company’s revenue recognition and can deliver significant savings.
Focus on your Core Competency
Offshoring allows the organization to focus on its core competency. Freeing up internal resources that could be put into effective use for other purposes is one of the primary benefits realized when companies outsource or offshore.
HR Management Overheads
It also reduces risk of hiring a team for maintaining the data projects. Similarly, it also mitigates staff turnover risks.
It helps the companies to leverage the experience of a larger team and their best practices. Outsourcing and offshoring also enable companies to tap into and leverage a global knowledge base, having access to world class capabilities.
It also helps to get an “outside-in” view to the business