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What are some barriers to outsourcing business intelligence?
I was wondering if anyone outsources their BI? Do you like it? Do you find it easier/less stressful or just the opposite? What are some reasons people don't outsource it? What are some barriers?
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5 Answers
BI projects tend to be difficult because ETL developers are not really programmers in the traditional sense. They need a lot more guidance in terms of the techniques and design strategies needed in a BI project, than a traditional programmer needs for a traditional development project. We think that we can get offshore ETL developers who know the tools well, and that they will be as good as traditional programmers. But they will not be as they need a much higher level of guidance on design. Then we have the problem of dealing with data sources that are pure abstractions with little business meaning to the offshore ETL developer. And then we have the information requirements that the users are directing the project to provide - again a complete abstraction to the ETL developer. So the challenge is in the management of the offshore resources. You need a great onshore design team (which you need anyway) and strong requirements/communications skills both offshore and onshore. The idea of simply hiring some cheap offshore resources that know a given toolset, without these other considerations, will doom a BI project
I currently work for a BI outsourcing supplier and I find it challenging to balance speed with quality of delivery. I believe it can be done well, but it takes time to refine all the current ways of working when you move from the in-sourcing to out-sourcing model.
The problem I see with insourcing is the continuity, availability and expense of employing lots of independent contract resources to supplement your core internal staff.
I believe outsourcing offers a solution to the problems above, but causes a different set of problems around being able to manage bulk knowledge transfer and cultural/communication issues, whilst still working to the same timelines on a project. Outsourcing also has the benefit of providing CxOs with escalation routes for dealing with resource issues as opposed to having to deal with 'too many chiefs' in terms of the contract resources.
I persnally view this as the challenge that we have to face up to. To provide a quality and responsive relationship to our client that continues to meet requirements and provide value etc. Our current rates of growth in the BI industry says we must be doing something right...
I also work for a BI services supplier that both advises and outsources. If you deliver in this space you need to have effective resourcing models and robust tried and tested methodologies for delivery. Phil identifies this accurately above.
Like outsourcing any domain you should clearly understand all the elements that are needed to deliver BI in your organisation. Then you can make a decision on what is to be retained in house and what you believe should be outsourced. Then ratify that approach with any prospective suppliers.
If BI represents a large change, then I believe some form of outsourcing represents the right route. Understanding the IT and business changes that are needed to fulfill a mixed business case of cost savings and business benefit has to be driven through tried and tested approaches, experiences and methodologies. However if you are looking at enhancing the internal service the market is crowded with large corporates and niche players who deliver differing elements of the BI stack to multiple organisations ........ think of DQ, base analytics, SaaS etc etc.
For the delivery of an ongoing service, outsourcing offers a route to use a standard approach for BI delivery which should drive costs down. For example development in India and Eastern Europe is always an option, but maintaining quality is key.
But be warned. I strongly believe that unless you have clear business objectives with carefully defined requirements then outsourcing offers no guarantee of accelerated outcomes or major initial economic savings or gains. Getting the definition of the solution/service right, either by advice or strong internal governance, is absolutely key.
If you are going for a comprehensive service, your supplier needs to be able to make the magical BI link between business outcome and IT delivery, which is always problematic who ever delivers. If you are getting niche support for specific areas then make sure your supplier (no matter what size) has the experience in house.
BI is one area where there is constant demand for tweaking and new reports. There is also the issue of continuously changing data sources. Outsourcing does not work very well in such dynamic situation. My previous company opened a new office in India and the employees still reported to the execs, which helped to maintain flexibility to an extent. So it may be a good middle course.
If you have the infrastructure to set up your inhouse development team,and a few good resource... say 6-8, who can work closely with the top management, I bet you can have the most effective solution for your business needs.You can make the changes in your solution as on when the market trend changes or you requirement changes, just a matter of days. You have the entire control. You can save millions,believe me. You will have more accountability from the developers, and they will know the business better being within the company.I agree with Mr Michael on the point, flexibility is the key in dynamic situation.
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