In-house vs. Outsourced Data Management: Which is Right for Your Business?

83% of organizations see data as an integral part of their business strategy. This is because there’s no denying that data is the backbone of every business and can help it grow.

However, gathering the data is equally challenging as maintaining it. That’s why you must consider outsourcing data management jobs a thought, but that might also come with risks.

This blog post will highlight the advantages and disadvantages of in-house and outsourced data management. In the end, we’ll help you make the right choice for your business.

But before we get into it, let’s first understand the difference between both modes of data management.

In-house vs. Outsourced Data Management: What’s the Difference

In-house data management means having a team at your disposal and instructing them to perform a specific data-related task. This team is under the business’ control and maintains data for better relationships with the customers, marketing strategies, managing sensitive business information, and everything in between.

In contrast, outsourced data management means hiring a team remotely. This team garners data according to your requirements and provides it to you for beneficial use. The business doesn’t need to equip them with resources and arrange the hardware and software needed.

Advantages of In-House Data Management

Quick Processing

Having in house IT support means quicker access to information and smooth passage of instructions. You can call the data management lead and brief them on the type of data required, and it will all be done within the expected timeframe.

Additionally, you don’t need to stress about any unexpected issues surfacing. Your in-house team can readily make tweaks and ensure everything is on track and in control.

Easy Communication

Since the in-house IT team is all available inside the office, communication with them is streamlined. You can approach them in their office or desk anytime and explain what needs to be done and how you believe the data management process to be carried out.

This definitely saves you from investing a considerable amount of time explaining your requirements via email. Moreover, you won’t have to wait for the response to the email, nor will their late response cause any delays on your end.

Peace of Mind For Data

One of the biggest advantages of having an in-house data management team is peace of mind. It takes a considerable amount of time and resources to fetch and filter the data required for your business. So, breaching is the last thing you’d want to happen to it.

Data breaches are rare if a business has an in-house management team. However, you can restrict the access of sensitive data to a few reliable and experienced employees in the company to tighten data security.

Know-How of Your Company

The team you have in-house for data management understands the values of your company. They have a good understanding of the company’s vision, where it stands right now, and its ultimate goals.

Being on-site, the IT team understands how to extract, filter, and process valuable data for the company’s progress. Not only this, but the team feels a sense of belonging, which results in a higher retention rate.

Disadvantages of In-House Data Management

Lack of Support

In most cases, IT teams for data management provide 24/7 support. They take full responsibility for your data and are all equipped to handle data-relevant emergency situations. You cannot usually have this privilege with an in-house team.

In house data management team works for eight hours a day. They perform their day-to-day tasks and leave when it’s time to head home. A few issues can surface during their absence, for instance, if the website goes down. So, you’d have to wait for them to come back the next day and fix the mishap.


Intentionally or unintentionally, you get involved with the in-house data management team. You inquire about the regular updates or manage them to move in the right direction. However, you can use this time efficiently in other activities that can prove beneficial for business growth.

On the other hand, you will just have to explain the expectations to the outsourced team once. They will have a manager to monitor their team. Smooth management of their manager will get the job done seamlessly.

Culturally Non-Fit

It can take days and even weeks to hire an employee. If you are considering hiring an entire team, it will take a much longer time. While investing this amount of time and effort are reasonable if you want to retain those professionals for years, it might not be the best idea if you want data for a specific project or if the need for an IT expert is temporary.

On the other hand, if you hire a data management team only after a few days of the screening process, employees can be culturally unfit. They might not be willing to collaborate and coordinate, leading to frustration and chaos in the team.

Advantages of Outsourced Data Management

Higher Efficiency

One of the most probable reasons businesses outsource data management tasks is the lack of the required skill set. A business’ current data management team may not have enough experience and expertise to collect and manage data.

The team you’ll outsource data management to will surely have enough skills to dig deep and drive exclusive data for your company’s growth. In fact, sometimes, the outsourced companies already have the data you need, which saves you precious time and helps you get started on projects ASAP.

Large Amount of Data

With years of experience and expertise in the field, the vendors of outsourced data management services usually have access to large data. One of the reasons is that they invest money and purchase premium resources to fetch the data.

Since companies might only need data for a specific reason, large data resources can be rare. This can also limit your data reach, while outsourced data management vendors can gather it for you with greater efficiency.

Cost Effectiveness

Outsourcing a data management job is one of the most effective ways to reduce your operational cost while elevating your growth graph. This is because you will have to invest time and money if you hire employees in-house.

In contrast, outsourcing will keep you from spending extra. Moreover, you wouldn’t need to provide resources for your employees. Expenditure on bonuses of employees can also be saved.

This is why it makes more sense to hire an outsourced team on a fixed budget for a specific project. This way, your company can dismiss its services once the project is completed.

Easy Team Switching

As discussed above, you can dismiss the outsourced data management team once the project is completed. This is also an option if you aren’t satisfied with the results of the work. You can select other professionals and offer a chance to another IT team to research and gather data for you.

While this is simple in the outsourcing model, you’d be mindful while doing it with your in-house team. A large investment and days’ worth of effort is involved in hiring them. Instead of firing them from the job, you’d probably consider training or upskilling them – investing more time and effort.

Disadvantages of Outsourced Data Management

Inaccurate Data

Although the reputation of the data management solution companies is at stake, there’s no guarantee the data they will fetch is accurate. There can be a little inaccuracy, and you might not even be able to encounter it. However, this is a rare case since the companies have a good command of data research and maintenance.

Continuous Support

Data is garnered with the help of a professional after a certain cost is incurred. However, it stales after a period of time. For this purpose, if you hire a data management company, you probably need support from them for a long to keep the data useful and up to date.

Data Leakage

Every company isn’t as respectful of your sensitive information as you are. A few companies aren’t careful when storing the data in their data center, and this can be a huge concern for you.

To overcome this situation, NDAs between the two companies are commonly signed before the information is exchanged. However, you must choose a reliable company to entrust your information and data.

Which Option is Right for Your Business?

There is no right or wrong choice between inhouse vs. outsourcing data management. It all depends on the needs of your business and approach towards leading the company to success.

Hire in-house data management team if you:

  • Want IT experts for the long term
  • Expect more control over the project
  • Prefer quicker and easier communication
  • Want to have peace of mind for sensitive data

Have special standards and specific project requirements

  • Outsourcing a data management job if you:
  • Don’t have enough skill set and want a competitive IT team
  • Are running short on time to manage data
  • Want to save cost on operations and resources
  • Want access to a large amount of data
  • Don’t want a long-term contract
  • Prefer 24/7 support and quick fixes

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