Why should you outsource digital analytics and marketing?

Should we do it with internal or external resources? It is probably the most difficult question I faced when I started as a web analytics entrepreneur 18 years ago. The question is always valid and the answer is never definitely yes or no. To clarify this, let’s dig into the whyin form of pros and cons of outsourcing.

Pros and cons of digital analytics outsourcing.

There are several downsides and upsides when managing external resources in your organisation. Downsides are more related with things like security, knowledge & ownership, continuity, reliability and cost management. The upsides are often related with employment, time, cost saving, expertise and deployment.

Let’s deep dive into those terms and look closer how outsourcing can give both pain and gain.

Pros of digital analytics outsourcing

  • Employee management; You can manage your man power with less risk associated with hiring and firing. This is especially important on project-based situations such as development programs. It is also very handy on situations when you have co-determination negotiations and you still need someone to do the work.
  • Time management; Most often external consultants can help you meet the timelines that you would not be able to reach otherwise. They can also free your time for other tasks more important for running your role in the organisation.
  • Cost savings; When working with external consultants you can save money in many ways. You can save money by doing the projects in time and right at once, rather than fixing and sailing back and forth on a never-ending project. You can earn more by optimising the shopping cart or improving media buying. There could be another ten articles about this benefit alone. 
  • Expertise; Outsourcing will make sure you will always have the leading-edge expertise without an investment on training and learning. Doing digital analytics with an external consultant will give you competitive advantage over those who do it internally. External analytics capabilities have already been invested on behalf of the agency. That is the investment that normally would require you recruitment, on-boarding, training, continous learning and always living with the risk of loosing the team to competitor or an agency.
  •  Deployment; One of the most important benefits of outsourcing digital analytics is to make usre you have the ability to lead and deploy the project from start to finish in required time. You can do much faster turnarounds with external digital analytics consultants when not having the challenges of internal barriers of resourcing.

Cons of digital analytics outsourcing

  • Security management; The default is that no consultant tells the customer intel onwards to any third parties. However, you should still pin down a bullet proof NDA and outsourcing contract to make sure that none of the information leakes beyond the customer team.
  • Knowledge & ownership; One downside can be the knowledge related with the analytics and optimisation work. The best knowledge holder and owner of the work done is in reality the consultant. when the short project is done the knowledge leaves the organisation, besides the documentation. This is why we don’t recommend you to do only short projects but rather a long partnership during which we can transfer the knowledge and real ownership to your organisation.
  • Continuity; This is very much related with the previous one. Doing everything in-house makes sure you have continuity in all situations. The continuity of your digital analytics knowledge depends on the length and depth of co-operation you have had with your outsourcing partner. If you in-house, make sure you document and that you have a back-up team member.
  •  Reliability; If you haven’t worked with the outsourcing team before, you will most likely have a lack of trust. You can overcome this by requesting references and certificates from your consultant. If they have worked with companies in similar industry or similar business logic as your business, then you are in a good place. Otherwise, the references from other industries should be superior in quality.

 

Recommended reading when you are planning to buy:

When should you outsource digital marketing and analytics?

How to get started with digital marketing and analytics? 

Typical pricing models provided by analytics agencies

Calculate the ROAS and ROI

 

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