Big data is a term that is used to describe large and complex data sets that are difficult to process by using traditional data processing applications. As more and more businesses adopt big data analytics, the demand for big data experts continues to grow.

Currently, there are a number of big data outsourcing providers who can help businesses manage their big data needs. However, before you decide to outsource big data, it’s important to understand the advantages and disadvantages of doing so.

What Is Big Data Outsourcing?

In the business world, big data is the large volume of data that companies collect and store. This data can be used to improve decision-making, drive innovation, and gain a competitive edge. Like data science, big data is going to get bigger and become much more important in the future.

However, managing big data can be difficult, especially for smaller businesses. That’s where big data outsourcing comes in, enabling more businesses to leverage the pros and cons of big data. Big data outsourcing or big data analytics outsourcing is the process of hiring a third party to manage and analyze your company’s big data.

This can be a great option for businesses that don’t have the resources or expertise to manage their own big data. Currently, big data outsourcing is widely used by many industries, including finance, retail, healthcare, life sciences, consumer products, and manufacturing.

Advantages of Big Data Outsourcing


Similar to the pros and cons of outsourcing software development (learn more), big data outsourcing also offers advantages that are difficult to ignore. When you outsource your big data needs, you can take advantage of the following benefits:

Increased Efficiency

By outsourcing your big data needs, you are able to tap into a pre-existing pool of talent and resources of the service provider. This can increase your efficiency and allow you to focus on your core competencies while also ensuring that your big data project is completed promptly and to the highest standards.

Focused on Core Business Processes


Data, and the analysis of data, is key component in many businesses today. However, it can become difficult for companies to focus on their core business processes if they have to spend time and resources on managing or analyzing big data sets that are critical to their success. You can focus on your core processes and leave the data management to a specialist by outsourcing this data.

Reduce Costs

Big data outsourcing can also lead to reduced costs. This is because outsourcing allows companies to cut down on their own (internal) costs by taking advantage of cheaper labor rates that exist in other countries.

As an example, if a company were to hire one full-time person in the United States to do big data analysis, they would be looking at a yearly salary of around $100,000. However, if they were to outsource this work to an organization in countries with cheaper labor costs like India, they could expect to pay less than $10,000 per year for the same level of service. In addition, you may be able to reduce your data infrastructure costs, as many service providers are able to provide flexible and scalable cloud services.

Improved Flexibility


Big data outsourcing can also bring in skilled performances to enhance data distributed systems and channels. It gives organizations a chance to be more flexible with the services they take up and focus more on areas that need improvements in data management. Businesses can take up these services only when necessary, ensuring their data infrastructure is kept healthy and secure.

Access to Domain Expertise

Outsourcing also provides access to a broader pool of talent than most companies would not be able to find in their own country. Not only this means more extensive and diverse talent pools, which can help teams come up with innovative solutions, it also means that there are experts in nearly every field imaginable who could potentially be recruited for any given project.

Faster Turnaround Time


By outsourcing big data analysis, companies are able to get results back much more quickly than if they were to try and do everything in-house. This is due to the fact that most outsourced organizations have teams of experts who are specifically dedicated to analyzing data and providing results in a timely manner.

Disadvantages of Big Data Outsourcing

Outsourcing big data management and analysis can be a great way to get the most value from this valuable resource. However, there are also some possible disadvantages to consider before making a decision.

Security Risks


As with anything that is outsourced, there is always a risk that confidential information could be compromised. When you entrust your big data to an external provider, you’re exposing it to potential security risks.

Your provider may not have the same level of security controls in place as you do, and perhaps they are not as diligent about protecting your data from unauthorized access, theft, or corruption. It’s imperative that you take essential precautions towards mitigating IT vendor risk.

Therefore, it is important for companies to do their research and make sure that they are working with an organization that has a strong track record when it comes to data security.

Lack of Control

By outsourcing your big data, you lose a certain level of control over it. You’re no longer able to directly access, manage or analyze it. This is because you are no longer dealing with the data directly and are instead relying on others to handle it for you. If the outsourced organization makes a mistake or doesn’t follow instructions properly, then it may lead to negative consequences for the company employing them.

Cultural Differences


If your organization and your provider are based in different countries, you may encounter problems related to cultural differences. Time zone issues can also cause problems, especially if your provider’s data centers are located in a different time zone than yours. These issues could make it difficult for both parties to communicate openly and honestly with each other.

Vendor Lock-in

If you outsource your big data to a single provider, you may find yourself locked into that provider’s services. If you want to switch providers, later on, you may have to go through a lengthy and expensive process of transferring your data to the new provider.

Limited Flexibility


If your needs change over time, you may find that your provider is not very flexible in adapting to your business requirements. Some providers do offer a flexible service model, but you may still face additional costs and other unexpected expenses.

Regulatory Concerns

If your provider is based in another country, it could be subject to different laws and regulations than your business is. This may cause problems if you’re required to retain certain records or information for a specific period of time.

What Factors to Consider When Choosing a Big Data Analytics Outsourcing Provider?


When choosing a big data outsourcing company to work with, it is important to consider the following factors to leverage the full advantages as well as avoid the disadvantages:

  • Expertise and Experience: The provider should have a deep understanding of big data and the ability to manage large-scale projects. Moreover, the service providers should have a proven track record of success in delivering big data solutions.
  • Scalability: The outsourcing partner should be able to scale up or down as needed to meet changing demands.
  • Technology: The provider should use the latest big data technologies and have a strong R&D department to keep up with the latest tech trends.
  • Cost: The outsourcing partner should offer competitive rates without compromising on quality or service.
  • Culture: The provider should be a good fit culturally, with similar values and a commitment to quality and customer satisfaction.
  • Location: The big data outsourcing company should be located in a convenient location with easy access to your team.
  • Service Model: The provider should offer the right service model that meets your needs, whether it’s on-premises, cloud-based, or a hybrid model.
  • Partnership: The big data engineering service provider should be willing to partner with you and support your long-term success.

When hiring outsourcing companies it’s essential to ensure that their offering suits your requirements. Hi Byron is a virtual assistant platform that empowers companies to outsource tasks instead of building a specialized in-house team, which many times can take away much needed resources that would have otherwise been allocated to the company‚Äôs core business operations. Hi Byron offers specialized virtual assistants that will reliably complete outsourced work for both short-term and long-term projects.


Whether you are looking for a method to save on costs or grow your company, big data outsourcing may be the solution you need. While it can be a costly and risky venture, it can also result in increased efficiency, access to expertise, flexibility, and other benefits. However, it also has some drawbacks.

Therefore, it is crucial for you to weigh the pros and cons of outsourcing big data before making a decision and ensure that any agreements include robust security measures. We believe that this article will give you an overview of all the pros and cons of big data analytics outsourcing and go through some factors to consider when looking for a qualified outsourcing provider.