By John McDermott, Co-Founder and CEO
Our Co-Founder and CEO, John McDermott, reflects on his conversations with other practitioners within the industry about some organisations’ in-house only approach to data and analytics resourcing.
Challenging Assumptions About External Data and Analytics Resourcing
In New Zealand’s data and analytics landscape, many organisations opt to manage every aspect of their data initiatives in-house—from strategy and design to development and ongoing support – all entirely in-house. While this approach does have its merits in some cases, it’s crucial to challenge the assumptions behind it.
What continues to surprise us, and our peers is the number of large, successful organisations that persist with this model, given New Zealand’s long track record of costly in-house data and analytics project failures – despite the very best in intentions and the access to a wealth of expertise from specialist organisations like ours and our competitors.
So, let’s unpack some of the myths around the in-house approach:
1. Myth: Data and Analytics Must Remain In-House to Keep a Competitive Edge
Reality: While internal management of data and analytics can provide control, it’s crucial to recognise that external specialists often bring a wealth of experience and innovative perspectives. External collaboration can enhance your data and analytics strategy, ensuring it aligns with industry best practices and leverages the latest technological advancements. Utilising a specialist data consultancy like Stellar gives you access to more than just the consultants on your project – you get to leverage the knowledge and experience of our whole team.
2. Myth: External Vendors Are Too Expensive
Reality: Engaging external vendors can be cost-effective, especially when considering the expenses associated with recruiting, training, and retaining a full-time, in-house team. Much of the effort associated with large-scale projects are one-off in nature and there’s often not the need for recruitment into permanent roles. Outsourcing allows for access to specialised skills on an as-needed basis, reducing overhead costs and providing flexibility to scale resources in response to project demands. In our experience, this approach can lead to significant savings and efficiency gains over the longer term.
3. Myth: In-House Expertise Ensures Continuity
Reality: Relying solely on an in-house team carries inherent risks, such as turnover and the potential loss of critical knowledge. External partners can offer continuity through established processes, documentation, and a broader pool of resources, mitigating the impact of individual departures and ensuring sustained support for your data and analytics initiatives. With strategic upskilling and knowledge transfer from our team to yours, you get the best of both worlds.
4. Myth: External Consultants Just Tell You What You Already Know
Reality: External consultants bring fresh perspectives and can identify blind spots that in-house teams might overlook. Facilitating meaningful discovery work to extract key requirements and strategic initiatives from stakeholders at all levels within an organisation is a complex process that need skilled practitioners. Consultants’ diverse experiences from getting under the hood across many organisations and industries enables them to challenge entrenched thinking and introduce innovative solutions, fostering a culture of continuous improvement, and driving strategic alignment within the organisation. So, while a successful data and analytics project may surface some known information, individual and group discussions led by a skilled advisory consultant will successfully tease out a multitude of great ideas – and break down business siloes in the process.
In conclusion, while an in-house approach to data and analytics can offer certain benefits, it’s essential to weigh these against the potential advantages of external collaboration. Engaging with experienced external data partners can provide cost efficiencies, enable you to gain access to specialised expertise and enhanced strategic insights, ultimately strengthening your organisation’s data and analytics capabilities.
Want to Learn More?
If you’re curious about how Stellar’s team of experienced consultants can support your organisation, we’d love to hear from you. Contact us on 0800 228 872 or email bi@stellarconsulting.co.nz.
