• 3,000 firms
  • Independent
  • Trusted
Save up to 70% on staff

Home » Articles » How businesses can benefit from data management outsourcing

How businesses can benefit from data management outsourcing

Many companies from various industries have become increasingly reliant on data for their business processes.

There are roughly 2.5 quintillions (2.5 followed by 18 zeroes) bytes of data created daily worldwide. Data management can quickly become overwhelming for businesses that rely on them for market advantage.

When data traffic overload renders a company’s data management processes immobile, data becomes worthless as they aren’t utilized for revenue-boosting activities.

Thus, many companies turn to data management outsourcing to eliminate the potential problems that may arise from the inability to manage data efficiently.

What is data management outsourcing?

Data management outsourcing is the process of delegating an organization’s data management operations to a third-party service provider.

Instead of taking on the daunting task of data gathering, aggregating, storage, or analysis themselves, companies turn to business process outsourcing (BPO) firms.

Get 3 free quotes 2,300+ BPO SUPPLIERS

These outsourcing firms handle the various data management processes and turn the output over to them, saving time and money for the companies.

By outsourcing this process, businesses gain maximum potential from data with minimum input.

What is data management outsourcing?

Types of data management systems

Companies manage data in various ways, depending on how they intend to use them.

Businesses may utilize these data to help them make better data-driven decisions. They can also use them to create better marketing strategies that target particular groups of people.

Whatever ways companies may use data, they often use data management systems to ensure maximum efficiency in data utilization.

Below are some examples of data management systems used by many companies.

Customer relationship management (CRM) system

Companies use customer relationship management (CRM) system platforms to facilitate a better connection with their client base.

Get the complete toolkit, free

These software solutions enable more efficient customer data collection and management.

Businesses use CRMs to generate leads and convert them into sales.

They can also rely on CRM platforms to track their customer engagement.

Data warehouse system

Data warehouse systems are digital storages of consolidated data sources.

There are three types of data warehouse systems:

  • Enterprise data warehouse (EDW)
  • Operational data store (ODS)
  • Data mart

Data warehouse systems enable and support the gathering of business intelligence (BI), particularly analytics.

These data are gathered from various sources, such as transaction applications and log files.

Over time, these systems consolidate massive amounts of data from different sources.

Businesses then use these collected data to improve their decision-making processes.

Marketing technology (MarTech) systems

MarTechs can include different types of platforms that help marketers execute their campaigns and other operations – hence the name marketing technology.

These can range from email services providers, marketing automation platforms, and other technologies that assist in advertising products and services.

MarTechs are typically used together with CRMs as these two systems benefit from each other.

How do businesses benefit from data management outsourcing?

Efficient data management brings organizations a wealth of valuable market information – and a well-informed company is a well-positioned company in the market.

Aside from providing invaluable insights, there are numerous other benefits businesses can gain from outsourcing data management processes.

How do businesses benefit from data management outsourcing

These benefits include:

Increased in-house productivity

Delegating data management tasks to an offshoring firm allows a company’s in-house staff to focus on more critical aspects of their jobs.

This workload distribution between offshored and in-house staff brings more efficiency than keeping everything in-house.


Outsourcing data management processes is a cost-effective way of reducing in-house employee workloads without sacrificing output quantity and quality.

Aside from cheaper labor (as much as 70% labor cost savings!), businesses also save on equipment and software costs needed for efficient data management.

Access to premium technology

Offshore firms that offer data management services often possess leading-edge proprietary software that enables more efficient data management. 

Considering the licensing fees, maintenance costs, and subscriptions associated with proprietary software, these types of software can be too expensive for small businesses.

Through outsourcing, businesses can bypass these costs and still have access to these premium tools and staff familiar with using them.

Improved data quality

Outsourcing data management processes lets an offshore firm’s team of experienced data management professionals handle the said function.

These experts, combined with the premium tech available to outsourcing firms, are guaranteed to produce data quality better than what businesses can achieve on their own.

Factors to look for in a data management outsourcing partner

Below are several factors businesses must consider before handing over their data management operations to an outsourcing firm:

Data security measures

Data security is paramount when it comes to businesses that deal with potentially sensitive data.

Thus, it’s essential to know what safety measures an outsourcing firm has in place to safeguard against unauthorized access and data breach.

Cloudstaff exemplifies a good outsourcing partner focusing on data security and confidentiality through modern security methods.

Data storage

Where data is stored can affect the performance of companies.

For example, cloud-based storage provides easier access and facilitates a smoother and more efficient data transfer.

Data management expertise

Any company can claim expertise in providing a particular type of service.

Thus, it’s imperative to check an outsourcing firm’s track records and see if they have experience in data management.

Get Inside Outsourcing

An insider's view on why remote and offshore staffing is radically changing the future of work.

Order now

Start your
journey today

  • Independent
  • Secure
  • Transparent

About OA

Outsource Accelerator is the trusted source of independent information, advisory and expert implementation of Business Process Outsourcing (BPO).

The #1 outsourcing authority

Outsource Accelerator offers the world’s leading aggregator marketplace for outsourcing. It specifically provides the conduit between world-leading outsourcing suppliers and the businesses – clients – across the globe.

The Outsource Accelerator website has over 5,000 articles, 350+ podcast episodes, and a comprehensive directory with 2,300+ BPO companies… all designed to make it easier for clients to learn about – and engage with – outsourcing.

About Derek Gallimore

Derek Gallimore has been in business for 20 years, outsourcing for over eight years, and has been living in Manila (the heart of global outsourcing) since 2014. Derek is the founder and CEO of Outsource Accelerator, and is regarded as a leading expert on all things outsourcing.

“Excellent service for outsourcing advice and expertise for my business.”

Learn more
Banner Image
Get 3 Free Quotes Verified Outsourcing Suppliers
3,000 firms.Just 2 minutes to complete.
Learn more

Connect with over 3,000 outsourcing services providers.

Banner Image

Transform your business with skilled offshore talent.

  • 3,000 firms
  • Simple
  • Transparent
Banner Image