With every innovation in the world of big data and analytics, corporate IT departments dive into new contracts with vendors to stay ahead of the competition. This is only natural, considering that the cost of collecting and maintaining data is one of the heaviest cost centres on a CIOs balance sheet.
But, in a world where F.O.M.O., the fear of missing out, is guiding decision making, it’s easy to get suckered into a bad deal.
Thankfully, more and more is being handled internally by corporate data scientists. Hadoop completely changed the way we store and interact with data – significantly lowering costs. And the more manageable data becomes, the more we’ll be able to reduce reliance on external contractors.
But, there’s one significant advantage to utilising outside contractors, even if your internal team can handle the nuts and bolts of data management. By working with outside vendors, you gain access to fresh perspectives, innovative sources of new data and cutting-edge concepts.
And no, using a qualified outside vendor does not constitute a data security risk. I hear from c-suite personnel that they worry about trusting their information to an external vendor. There are a ton of easy steps you can take to limit your vulnerability while taking advantage of outside contractors.
So, let’s take a quick look at some steps you should take to minimise the risk that your big data contracts turn into big headaches.
Don’t Forget to Include Data Analysis, in Addition to Storage
I consulted on a project with a startup that had forecasted their entire first year of costs and revenue. A forecast is only as accurate as the assumptions and insights placed into the excel sheet. Unfortunately, this medical startup was still new to the world of data.
They shopped around for quotes on scalable big data solutions. They paid careful attention to the collection and storage of the data, but they forgot to ensure that their cloud-based dream solution included comprehensive analysis.
Don’t just take a vendor’s word for it. You need to understand what kind of analysis will be provided. And you should insist that a data scientist with knowledge of your field sifts through the data.
Communicate Efficiently with Account Managers
This is the golden rule of collaborative contracting – stay in close communication, and regularly relay the good and bad of your relationship. If the vendor handling your account understands your expectations and has a clear picture of how you feel things are working, you can head off disasters before they become more than a minor frustration.
Whenever I delegate responsibilities to an outside vendor, I maintain close communication. First, I schedule a weekly status call. If things are going well, it’s a quick 15-minute chat. But, if there are problems, I book an uninterrupted hour for us to work through issues. This simple step dramatically improved the quality of the work I receive back from outside partners – allowing me to do my job more efficiently.
Keep Critical Data On-Site
The cloud is great for data-redundancy and on-demand access from virtually any platform. But, if you’re working with a third-party, it’s important to keep sensitive data backed up at a physical location that you control.
Even for terabytes of data, it’s now possible to cost-effectively store information in multiple places. In just the past year, the cost of storage has gone down by 83%. That’s a big one for smaller firms with limited capital to throw at data duplication.
And, when you keep your most sensitive and critical data locked away in your datacenter, you protect your firm’s intellectual property from being intercepted. This is the kind of data that could cost your company a competitive advantage if it fell into the wrong hands, and should be protected accordingly.
No matter how you slice it, you’ll get the best experience by combining internal storage with outsourcing big data solutions. If you can communicate openly with your outside vendors, while holding their feet to the fire on quality data analysis, you’ve got a shot at taking on the Goliaths of your industry.
