5 Ways Data Science Specialists Outsourcing Can Help You Navigate Economic Headwinds

While economists’ views on the timing and extent of a looming recession differ, there is a broad consensus that the Federal Reserve’s interest rate policies would inevitably trigger a period of contraction.

Finance leaders who have survived the last recession know better than to risk their business on scarce capital that could quickly dry up overnight. Companies are beginning to enforce hiring freezes and lay-offs as they heed investors’ calls to shift modes from growth-at-all-costs to resiliency and risk management.

Forward-thinking firms also rely on insights to help them navigate risks and act on opportunities. As more companies realize the potential of data, the demand for a reliable data scientist team continues to rise. One cost-efficient and innovative strategy businesses can leverage is data science specialists outsourcing.

Why Should You Outsource Data Science Services?

The biggest challenge businesses face with data science is budget constraints.

• As much as 50% of U.S. executives report budget constraints as the biggest barrier to leveraging data as a valuable business asset.
• Businesses facing this challenge can outsource data science services to unlock actionable insights to drive financial success.

Leverage the benefits of outsourcing data science to the Philippines for a competitive edge in your industry.

• Comparative Cost Advantage

Since recruiting full-time data scientists requires a lot of additional expenses, cost-effectiveness is one of the leading reasons why companies outsource to the country. 

The Philippines has competitive labor costs which allows outsourcing clients to drive savings and channel its funds to more crucial aspects of business. 

BPO firms also allow businesses to minimize costs by covering overhead and operational expenses. Data science outsourcing will spare them from costs associated with office space, infrastructure, utilities, and other expenses, ensuring a larger profit margin.

• Experienced Data Scientists

Since data science is so technical and specialized, only some are qualified to be in the field. 

Fortunately, the Philippines has a large pool of skilled professionals, particularly in data science, analytics, and management. Outsourcing allows companies to tap into this talent pool without investing heavily in training or recruitment efforts.

Filipino graduates who join the workforce have a solid foundation in math and computer science skills to succeed. They also have strong business acumen, critical thinking, and high language proficiency skills.

By outsourcing data science solutions to the country, you can rest assured that you are working with data scientists with domain expertise and decades of experience.

• Deep Talent Pool

Amid the tech talent crunch, Philippine outsourcing provides a much-needed lifeline for businesses seeking to leverage big data in future-proofing operations.

The country produces world-class talent from top-ranking universities and colleges that can help businesses fill their vacancies.

• Minimized Risks

Data science projects always involve a certain amount of risk.

But when you work with Philippine outsourcing companies, you can minimize risks and delegate the management of these potential issues to certified experts.

One such risk is data breaches. The Philippines has data privacy laws in place to protect your data. The primary legislation governing data privacy in the Philippines is the Data Privacy Act of 2012 (Republic Act No. 10173) which aims to protect the fundamental human right of privacy while ensuring the free flow of information for innovation, growth, and national development.

• Greater Focus on Business Growth

Companies need a laser-like focus on their core offerings to succeed in a cutthroat global market. Nothing should remove attention from their primary goal of increased revenues and expansion.

Outsourcing can help firms stay on track. With a reliable Filipino outsourcing team, in-house staff can focus on strategic initiatives, critical functions, and business goals, safe in the knowledge that their data is in expert hands.

How Can Data Science Outsourcing Help You Navigate Economic Uncertainty

1. Integrating Data Science To Streamline All Aspects of Your Operations

Companies across all sectors are already embracing the power of data intelligence and leveraging a wealth of actionable insights to make informed decisions that lead to business growth and a healthier bottom line.

For instance, in the education sector, roughly 1,400 universities use predictive analytics to help address low graduation rates. A vast majority (72%) of manufacturing executives report that they are already leveraging advanced data to improve their productivity. Meanwhile, 68% of travel brands plan on investing in predictive analytics and business intelligence.

However, some businesses only apply data-driven strategies to certain aspects of their operations, failing to harness the full potential of data and leaving room for error in other business processes. For example, let’s use data analytics solely for sales and marketing. Indeed, it would increase your income, but it won’t contribute to your company’s internal development and productivity.

Data outsourcing to the Philippines can ensure that you get the most out of your data by integrating it into every business process of your operations. By streamlining these processes, businesses can achieve maximum efficiency and increased revenues.

A data-powered business culture will pinpoint where you should allocate your resources to maximize profitability and fine-tune processes to help achieve agility and flexibility across all fronts.

2. Delivering Data in Real Time for Urgent Decision-Making

Accurate, timely data is the driving force behind all successful business decisions.

But while it’s acceptable sometimes to trust your instincts, decision-making is still largely subjective and prone to judgment errors. This explains why you should always double-check your assumptions with hard data before making significant moves.

Fortunately, analytics can unravel valuable insights and behavior trends for quicker and more accurate decision-making. Using data to inform decisions also helps your company grow and adapt to the ever-shifting business environment.

Let’s take, for example, how executives and investors use annual reports to plot out their next strategies. Outdated and inaccurate data can lead to significant problems impacting their business for a year. But some factors keep a company from making data-fuelled decisions, such as limited data infrastructure, an in-house team’s lack of data science expertise, and the time-intensive nature of data processing.

Businesses that face these challenges can turn to Philippine outsourcing.

Outsourcing data science solutions helps by upgrading software that can readily generate, process, and analyze data, delivering faster and better insights for business stakeholders.

3. Modernizing Your Architecture To Make Data More Accessible

Data quality isn’t just about the accuracy of your numbers. Infrastructure is just as necessary. With an exemplary data structure, businesses will be able to optimize the value of their data.

The amount of data we produce is staggering. And as artificial intelligence (AI), the Internet of Things (IoT), machine learning, and other data science tools fuel the influx of data, it will be even more challenging for businesses to keep their data structured.

Why? Businesses aren’t just dealing with simple numbers; they track millions of transactions, customer data, social media, site analytics, tons of business development, and financial KPIs. It can be hard to filter relevant information with this mountain of information.

Another common problem caused by unstructured data is siloed, wherein data is rendered useless because it is isolated in standalone systems incompatible with other data sets. This happens a lot in businesses with poor data management systems.

That’s where modernizing your infrastructure comes in. A Philippine outsourcing company refines data, leveraging various database types such as time series, graphs, and NoSQL for more flexible data structuring methods. They also merge data sources to simplify data collection, processing, and analysis.

Ultimately, when you outsource your data, you gain access to cutting-edge technology and infrastructure that systematizes the way you process, retrieve, and maintain data, allowing you to get the most valuable insights from your data.

Moreover, data outsourcing allows you to act quickly and efficiently on their insights.

4. Providing Access to Deeply Entrenched Data Networks To Help You Gain Insights About the Economy

A data ecosystem is a platform of interconnected data storage systems from a network of providers that helps businesses build value and gain deeper insight through data intelligence.

One such example is the data network in the finance sector. 

Financial data-sharing initiatives like the U.K.’s Open Banking Implementation Entity and Europe’s second payment services directive are rising globally. Similarly, the U.S. Consumer Financial Protection Bureau aims to initiate a consumer-authorized data-sharing market.

Another good example is the evolving retail data ecosystems. As early as 2019, some key industry players already partnered with other brands to improve customer experience and fuel engagement. Data ecosystems also help businesses achieve more accurate credit risk evaluation, improved workforce allocation, and robust fraud protection.

However, while data networks have the potential to yield substantial value, doing so often involves several entry barriers. Finding the right partners to build the network is one of the most challenging.

Fortunately, Filipino BPO firms already have access to vast, multi-sectoral professional networks that can be leveraged to create a scalable ecosystem that would otherwise not be possible with limited in-house team capabilities.

5. Prioritizing Data Security and Resiliency To Protect Your Financial Assets

In an increasingly digitized world, protecting your data and financial assets should no longer be an option. It is now a staple for any strategy.

Systems breaches and cyber attacks have evolved in sophistication and complexity over the past few years. The average cost of breaches jumped to $4.35 million in 2022 from $4.24 million in 2021, continuing an upward trend that began in 2020 with $3.86 million.

Companies recognize the importance of data privacy and protection. However, many businesses acknowledge that their infrastructure needs to be equipped to keep pace with future attacks. Providing security access remains a largely manual and error-prone process facilitated by humans — the weakest link in the data protection chain.

And when it comes to data resiliency, we are even more behind.

Businesses typically recover data using backups that are anchored on single applications. Problems arise in interconnected infrastructures where resynchronization becomes an issue.

Fortunately, Philippine outsourcing can remedy this by upgrading processes and ensuring data safety from breaches that have grave financial implications.

Why does your business need data outsourcing?

• Expediting Business Growth

Working with a reliable service provider allows you to boost internal growth without the tedious burden of recruiting staff, onboarding in-house teams, handling overhead expenses, and managing infrastructure.

• Maximum Scalability

A business’ workload tends to be unpredictable. During peak seasons, they would need more staff to work on data backlogs, and on less busy times of the year, things can run smoothly with fewer people.

Outsourcing companies can help businesses navigate these unpredictable trends.

An external provider allows you to seamlessly scale your team up and down according to your needs without wasting any internal resources.

• Customer-Centric Approach

As the dynamic business landscape evolves, the demands of consumers change without it.

Businesses can leverage advanced data science and analytics to anticipate market trends and industry demands. This will give them a competitive edge when delivering in-demand products to their target demographics.

As experienced companies in customer satisfaction, BPOs can transform consumer data points into increased engagement and sales conversion.

• Revenue Boost

Let’s take a page from the playbook of the most prominent example of a company that benefits from data science, Amazon. This Fortune 500 behemoth has made colossal investments in analytics to understand the market better, and as a result, it’s now a leader in the e-commerce industry.

Amazon uses a unique algorithm to analyze customer behavior and meet their demands. These specifically targeted suggestions were a major hit, driving significant purchase growth per user. Following Amazon’s footsteps, online retailers of all sizes are trying to implement data science in their daily operations.

Want to see similar results? 

Tap an outsourced team to do the work for you. Every BPO third-party provider has a dedicated team of data experts who can digitally transform your entire organization with analytics.  

The Do’s and Don’ts of Outsourcing Data Science

• Do: Getting To Know Your Provider

With so many outsourcing companies promising to be the best on the market, finding the right one for your business can be challenging. Minimize risks and potential issues with this quick checklist to help make informed decisions:

Positive Feedback From Clients

Credentials of Data Scientists

Data Science Services Offered

Tech Infrastructure Used

Company Culture

• Don’t : Focusing Too Much on the Cost

When it comes to data science services, the cheapest isn’t always the best.

Remember that you are still working with data experts who leverage cutting-edge technology. While cost-efficiency is one of the main benefits of outsourcing data, quality work always comes with a price.

Do your due diligence and balance practicality and what you’re paying for outstanding data science services.

• Don’t: Prioritizing Data Usage Over User Protection

Data security measures are crucial in business operations but always treat your service provider as your outsourcing partner.

Establish safeguards for your business while at the same time practicing transparency with them so you can get the most value out of your data.

Navigating Economic Downturns With Data Science Specialists Outsourcing 

With data growing exponentially, only some businesses can harness their data. Even fewer can unlock its potential due to some economic limitations, like the global shortage of data scientists. 

Outsourcing is a potent tool for optimizing and transforming your data into actionable business insights. Businesses may offshore to a Philippine call center or partner with a BPO in Colombia for nearshoring operations.