World Connected 23 Nov 2012

Analyzing Data Management Outsourcing Trends

Several surveys have been concluded about the outsourcing industry worldwide; focusing on the USA and Western Europe. The latest results show that the industry is growing every year, and there is a noticeable movement on the market regarding different industries. Data management outsourcing has grown in the past ten years, and IT outsourcing is one of the largest markets out there. In order to gain competitive advantage, a greater number of companies are looking for reliable outsourcing agencies to handle overhead, workflow, projects and IT management. Below is an overview of the growth of the data management outsourcing industry.

USA vs. Europe

data-managementIt is interesting to see that a greater percentage of companies chose IT and data management outsourcing for simplifying their operations management in the USA than in Europe. The access for new and advanced technologies and skills was also a more significant reason in the United States. Reducing capital costs was among the most significant motivations of selecting freelancers and outsourcing agencies. Selecting trusted companies, however, is more important for European companies than American ones. Decisions on outsourcing are mainly made by the senior business manager or the executive board.

Pricing Models of Outsourcing Companies

In recent years, many companies have surveyed customers to achieve a higher satisfaction and retention rate. After finding out more about customers, some of them changed their pricing models to clients’ benefits. Reducing the risk of hiring an agency to recruit skilled workers in the data management industry and providing more security features was one of the advancements. Centers of excellence and quality assurance departments have been created by data management outsourcing agencies, while training systems and skills checks were made more effective.


One of the main reasons still holding some companies back from employing an outsourcing agency is the lack of trust in the security systems of the firm. Therefore, some industry leaders have created data protection policies and now provide training and testing of employees about legal requirements of handing customers’ sensitive data or information. This includes saving, retrieving, protecting and not disclosing documents, as well as criminal background checks of those working with financial information of firms. Liability has been automatically added to the packages, and this means that the rules and regulations are enforced by the company on all employees.

Remote Infrastructure

One of the main developments in data protection in data management outsourcing was the addition of cloud management. This enabled faster and safer data sharing without the need of setting up networks and internet access to servers for short term projects. The delivery method is the safest out there, and the management of files is easy through cloud access. As the level of access can be determined by the employer, there is less chance of compromising data and the occurrence of security breaches. Still, some customers are waiting for the cloud management systems to develop further to fully trust data management outsourcing companies.

– BackOffice Pro

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