SME's Should Outsource Data Analytics. Here's Why.

Data Analytics is a must have in todays business landscape. Large corporations collect terabytes of data everyday about their customers and use it to drive their decisions. Every single successful company has a data driven approach to decision making as it allows for better allocation of resources, measure the effectiveness of products and services as well as optimise operational processes to reduce costs.

These large enterprises spend millions on Data because ROI is multiple times larger than the investment. However, small and growing businesses usually do not have the budget to spend such large amounts on data. Statistics show data driven SME’s can operate up to 40% more efficiently. This can be massive competitive advantage in todays climate, especially in fragmented industries with saturated market conditions.

Data analytics has usually been out of reach for SME’s. However, with the increase in technology, SME’s are able to leverage data just as much as the large companies. Here are a few reasons why SME’s should outsource data analytics and reap the benefits data has to provide.


Cost

The biggest factor is undoubtedly cost. Good data analysis requires sufficient talent and technology. Hiring Data Engineers/ Analysts and Scientists can be expensive with the average salary in the UK being around £45000. Alongside this, the technology needed also costs a pretty penny. Data warehousing, BI and Visualisation tools, Analytics tools and dash-boarding tools all require significant monthly investment.


However, outsourcing can be an effective way to leverage data without spending large amounts. Data analytics firms like Venturkit have data analysts, engineers and scientists. This talent can be available to you at a fraction of the cost for your analytics needs. Furthermore, these data specialists deal with a large amount of data hence develop a level of expertise that one can only gain with a breadth of experience. Data analytics firms also have their own technology stack so you don’t have to invest in any technology.


Expertise

The usefulness of data analytics comes down to the expertise of the analyst. Data analysis usually requires using the data to infer useful insights into the company. An analyst with expertise and experience in a wide number of industries can provide insights and a unique perspective which an analyst deep inside a specific firm can not. This is due to the ability of the specialist to spot trends across industries, apply cross-industry analysis and apply a novel, out-of-the-box approach which can often lead to a fresh perspective.


Flexibility

A data team has limited time hence their resources need to be allocated efficiently. This means any Ad-hoc analysis can sometimes take longer than expected or there is a significant opportunity cost. Outsourcing your analytics means you can scale up and down your analytics efforts easily, at an affordable price, without a large opportunity cost.

Analytics outsourcing can be a useful way for SME’s to leverage the power of data and adopt data driven decision making without investing large amounts in talent and technology.

We at VenturKit are experts in the setup of data infrastructure as well as regular and ad-hoc analysis for SME’s. Whether you’re just looking to start using data and don’t know how to get started or you want to implement the power of data, VenturKit can provide this to you at a reasonable price which can be as low as a few hundred £ a month.