Why Big Data Analytics is The Next Big Opportunity for Outsourcing Companies

Big Data Analytics is making big headlines these days. Just check out a few from recent past:

So what is Big Data and why it is in the news so much these days?

According to Philip Russom, Director of TDWI Research, Big Data has three defining attributes – three Vs as he calls them. They are Data Volume, Data Variety and Data Velocity and together they constitute a comprehensive definition of Big Data. So Big Data is not just about Data Volume, but also the variety of data (mostly unstructured) and the velocity with which the data is generated and need to be analyzed. (for more, check out following posts by Philip Russom and the TDWI Best Practices Report titled Big Data Analytics):

Given three Vs of Big Data, ‘traditional’ data storage, retrieval and analytics methodologies are no longer going to work. Cloud Computing is going to play a key role when it comes to Big Data Management and Analytics. And here in lies the opportunity for Outsourcing companies.

Traditionally, data collected by organizations is ‘safely’ stored in massive relational database accessible to only few within the organization and requires elaborate infrastructure both in terms of hardware and software for storage, retrieval and reporting/analytics. In such an environment, it is not possible to easily outsource Data Analytics function/processes alone given the heavy investments made in terms of hardware and software.

Because of the business requirement of analyzing vast amount of ever changing structured and unstructured Big Data almost instantaneously, companies will be hard pressed to do this on their own. But given the fact that Big Data stored in cloud can be accessed from anywhere the internet is available and can be analysed almost instantaneously by third party service providers,  outsourcing companies can offer to their clients value added services in the area of Big Data analytics without heavy investments on the part of clients in specialized hardware and software as was the case with ‘traditional’ data analytics. This will bring down significantly costs (especially fixed costs) associated with building and maintaining analytics infrastructure and solution center.

Just to give an example in the area of Social CRM, Social Media has empowered customers like never before as they can discuss about brands/products on Social Media channels. The best any marketer can do is to Listen, Learn and Engage customers. Given the three Vs of Big ‘Social’ data and the fact that most of the user generated content resides in the cloud, outsourcing companies can offer cost effective analytics solution to their clients to enable them effectively engage their customers/prospects in real time.

What do you think? Do you agree that Big Data Analytics is The Next Big Opportunity for Outsourcing Companies? Look forward to hearing your thoughts and comments:

  • Outsourcing was and is a disaster for software development projects (creativity and quality went way down) and it will be even larger DISASTER for those who will choose to outsource their “Big Data Analytics” oto outsider. Most of Analytical projects require much more interactions with customers and personal communications between users, analysts and developers (if any).
    It may be the opportunity for those who wants projects to be outsourced to them, but only because they can get projects and jobs using other ways (e.g. in their countries there is not too much demand for in-sourcing) Andreihttp://apandre.wordpress.com/

  • Thanks for sharing your thoughts, appreciate it!

    Harish Kotadia, Ph.D.

  • Outsourcing the individual resources operate would decrease the risk and allow the company to keep working.

  • About Dr. Harish Kotadia

    That's me with photo gear,  taking snaps of Texas wild flowers. #texas

  • Dr. Harish Kotadia

  • Dr. Harish Kotadia is an industry recognized thought leader on Big Data and Analytics with more than fifteen years' experience as a hands-on Big Data, Analytics and BI Program/Project Manager implementing Enterprise Solutions for Fortune 500 clients in the US.

    He also has five years' work experience as a Research Executive in Marketing Research and Consulting industry working for leading MR organizations such as Gallup.

    Dr. Harish Kotadia's educational qualification includes Ph.D. in Marketing Management. Subject of his doctoral thesis was Customer Satisfaction and it involved building a statistical model for predicting satisfaction of clients with services of their ad agency.

    His educational qualification also includes M.B.A. and B.B.A. with specialization in Marketing Management and Diploma in Computer Applications.

    Dr. Harish Kotadia currently works as Principal Data Scientist and Client Partner, Big Data and Analytics at a Global Consulting Company. Views and opinion expressed in this blog are his own.

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