Traditional data bureau argue that data processing is a highly skilled task and should be priced as such. Competing bureau state that they manage data better than anyone else; their processes are more advanced; their software is better etc.
Benchmark tests we have taken part in with other bureaux have concluded one thing – everyone is about the same!
Prices that some bureau charge for any “bespoke” processing not covered within the contract are often charged per man-day but is anyone who processes data really worth £500 per day? Indeed some bureaux will look at charging £1,000 per manday!
This ‘high cost’ paradigm is now coming to an end.
Why? Hardware and software prices have come down dramatically over the past few years whilst the actual technological capacity of the equipment has increased. In fact there is no justification for high prices at all.
The key to modern day data processing is the level of service.
Many companies and organisations have embraced these technological advancements by moving all processing in-house however, the perceived benefits are often never realised. How do you create a Service Level agreement with another department or an employee? The consequence is that objectives and required levels of service of the marketing department are never fully achieved.
Any process that is undertaken in-house will always have disadvantages – who will be responsible, what if they leave, how to get a replacement…
Just last week one of our clients recently experienced in-house processing shortcomings when they had to have some data supplied for a campaign the next morning, they’d received the data and just needed the password but were told everyone had gone home at 6 p.m.!
The old argument about keeping data in-house for “security” reasons which then means it has to be managed and processed by in-house personnel is now also redundant with secure VPN technology allowing all data to reside internally but the personnel who undertake processing being remote. Whether the remote personnel are 1 miles away or 1,000 miles away is an irrelevance.
However, gold-star service can be provided remotely, offshore. . Offshore provides 24/7 levels of service whilst the time differential is actually an advantage as data can be processed ‘overnight’. Moreover, staffing levels can be cost-effectively enhanced to provide greater reactivity and better service levels. In fact, such are the cost savings by data processing offshore, the actual levels of service are dramatically improved.
The criteria for choosing an offshore supplier should be exactly the same as a domestic based company, namely – fulfilling the brief, experience, knowledge, contracted service levels, flexibility, scalability and price.
Data processing is now a commodity purchase and the advantages of outsourcing offshore are compelling.
Author: Jed Mooney, Managing Director
Source: DM Weekly
Publication Date: 30 October 2006