In the past, the predictable trend was for people to learn certain skills through formal education, vocational training, or apprenticeship and seek full-time employment. But over the last couple of decades, the economic shift towards globalization and advances in technology has expanded the possibilities for employment beyond the geographical location or even a formal office environment.
Taking the case of the Data Analyst, the person’s role is to manage Big Data. The person has to design machine learning models that can carry out data mining in large volumes, use statistical and mathematical formulae to analyze the data for specific outputs, and produce the requisite results for business predictions.
Data Analytics agencies not only handle Big Data, they also carry out allied services. Some business organizations prefer to employ an in-house Data Analyst. And then there are companies who would rather hire freelancers on the contractual basis. To understand whether hiring an agency, employing an in-house Data Scientist, or using the services of a freelancer is better; it is necessary to know the advantages of using each category.
ADVANTAGES OF HIRING AN AGENCY FOR DATA ANALYTICS
An agency is not just one person so there will be many employees with different specializations. So when you hire an agency, you reap the benefits of their combined skills. Other advantages of hiring an agency include:
Monetization of data – For example, when you are searching for a product on the Amazon website you will see something like – customers who bought this item also bought… – and there will follow images of other equally interesting products that come under the same category. Agencies can help you to bring your products into the limelight in this manner.
Risk assessment – An agency can also carry out the risk assessment on your behalf. They can access and analyze information from a third-party online payment process to gauge the creditworthiness and compliance procedures of a business with whom you wish to partner.
Unbiased predictive analysis – This is the most profitable aspect of hiring an agency for Data Analytics. An in-house Analyst can also carry out predictive analysis, but an outside agency will give you a more dispassionate and unbiased view of whether your existing data model should be modified for a more efficient predictive analysis of customer behavior.
Access to Bigger Data – Agencies have many types of employees who can predict the weather, natural calamities, co-related demands (like chips with burgers, seasonal demand for cold drinks, etc.), by accessing Big Data.
Diversification – This is another factor where hiring a Business Intelligence agency is very necessary. Checking the feasibility of diversifying and expanding your business scope in a pragmatic manner can be done by an agency more accurately than by the in-house Analyst.
BENEFITS OF EMPLOYING A FULL-TIME DATA ANALYST
Nowadays, the majority of companies who want to globalize their market and create brand value are willing to pay huge pay packages for qualified full-time Data Analysts. The advantages of hiring an in-house Data Analyst are:
Better understanding of your business – Being a full-time employee, the Analyst has a better understanding of your business goals and objectives, the products you manufacture, the demographics of the customer base, etc.
Evidence-based analysis: Being within the premises is a real boon when the decision-making body of a company needs analytical data very quickly. An in-house Analyst can extract vast amounts of real-time streaming data, analyze it using specific metrics based on historical and current evidence, and present a predictive analysis for future planning.
Retesting: An in-house Data Analyst can keep retesting the existing machine learning model to capture and analyze information until it is honed to perfection. The person can perform as many tests as necessary to ensure that the outcome is definitely going to be beneficial for the organization.
More proactive: The analysis and reporting by an agency will be very professional but very clinical in its approach. Whereas, the in-house Analyst will be more proactive in modifying the data model to introduce product-specific CRM programs, loyalty-reward campaigns, etc. after extracting and analyzing real-time data.
ADVANTAGES OF HIRING A FREELANCER
A freelance Data Analyst will be highly qualified and experienced in Business Intelligence. The main advantages of contracting with a freelance Data Analyst are:
Flexibility of time: Hiring a freelance data specialist on a project-basis will give you the flexibility as regards timings of work, delivery schedule, etc.
Cost-effective: The cost of hiring a freelancer will be more affordable than paying an in-house Analyst or hiring the services of a specialist agency.
Easier hiring process: Employing an in-house Analyst will require your HR department to go through the tedious process of advertising for the post, shortlisting the candidates, interviewing them, and completing the paperwork. Using the services of an agency also requires a fair amount of research into the performance and client experiences of various agencies before you choose one. Whereas, selecting an expert freelancer project-by-project is a simpler task and costs a lot less.
Easier to retain talent: With Data Analysts being attracted by newer challenges and higher pay scales, it is very difficult to retain the services of a specialist for a very long period of time. When you need the services of an Analyst, hiring a freelancer becomes the easiest method of tapping expertise in Data Analytics.
To sum up, the budget is the biggest deciding factor when you need Data Analytics services. Large Cap industries prefer the services of agencies because their needs are diverse. The agencies have the benefits of multitasking and super-specialization which are passed on to the clients (business organizations). The clients may need different types of services like Analytics, risk assessment, and more. Mid Cap industries who want to expand may choose between agencies and in-house Analysts depending on their budget and company-specific needs. Startups and small businesses usually prefer freelance Data Analysts because they have limited needs. Since their budget is also limited, they will want to hire a freelancer on project-basis for a small fee.