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Challenges in Outsourcing Big data

Outsourcing refers to the contracting with another company for business purpose. It includes both international and domestic contracts. Sometimes outsourcing also refers to exchange or transfer of employee and assets between different firms.  It helps the firms in reduction of cost and improvement in quality.

Outsourcing big data is associated with several benefits, but it having many risk too. In this article you are going to read depth review about the various challenges involved in outsourcing of big data. Challenges are:

Data Security– When you outsource the data to a vendor for analysing or processing then data security comes with a challenge. Privacy of data can be invaded. After outsourcing the data, whole responsibility falls upon your vendor, regarding the privacy and security of that data. If their security system is not strong then the data can be accessed by an unknown third party & it harm your business.

Understanding between Data and Information– Outsourcing big data to a vendor means you are providing unstructured data to them and wants valuable insight from those data. So to meet your expectation they must have good understanding about the problem or question whose solutions we need. If these are not so clear then you may not get the same information that you are expecting. Any data or result will not make any sense for you until and unless you will be able to use those information.

Skills and Knowledge– The whole processing or analysis on data will be done by the service provider after outsourcing. They will have their own employee and you may not have knowledge about their skills & knowledge. So it may arise a big question that are they capable enough to handle your data & project?

Unexpected demands– Initially the service provider may not give you all information just to get the business but during processing they go further in the project and then they may demand more money.

Delay– Often service provider try to lock their clients into long term deals. They may do so based on contract terms and pricing that will be outdated in few months. It brings lack of understanding and frustration.

Damage may occur– Sometimes the service provider doesn’t properly documented into client’s core technological framework. They came to know about it later when they get complains about it but till then damage already has been occurred.

Unnecessary cost– Some service provider hide the overall margins from the client to get more profit over the contract. They may tell their clients about the unnecessary services that doesn’t need in that project and they charge for that too.

Risk – Outsourcing of big data create huge responsibility for the service provider. The range of equipment is from simple things to difficult things to really difficult things. All must be perfect and work as a unit. If any single things went wrong then it will effect the whole project.

Lack of communication– For outsourcing location doesn’t matter. Companies outsource their data across the globe. So frequently communication should held between client & vendor regarding the project status. If the service provider is not so aware about the communication importance then it may be a cause of failing the project.

These are the few challenges that will come across during outsourcing big data. Companies have to fully dependent on the service provider for the information. Everything is in the service provider’s side if they made any mistake in analysing the problem then they will give different results apart from your needs. If they haven’t skilled employee to work on that project then it may a cause of delay or failure of that project. So always before outsourcing big data, take care of above mentioned points & try to short it out as soon as possible.

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