Why Outsource Analysis Applications?

Companies often elect to outsource some or all of their analysis applications for a number of important reasons. These include:

  • Access to expertise and experience that is not available internally.
  • Reduction in fixed overhead expenses.
  • Exposure to analyses and techniques that have been successful in other companies.
  • Higher level of performance-related accountability.

Unless a company is committed to funding a multi-person internal analytical department, there are additional management issues solved by outsourcing.

  • There is great vulnerability that a single analyst will choose to move to a different their position, possibly on short notice, leaving their function without staffing for an indefinite period of time. Sometimes the organization will lose much of the knowledge about prior analytical work.
  • Without management that understands analytical work very well, it is difficult to properly evaluate the quality of the analyst's work. This creates unresolved uncertainties as to whether work products are A+ quality, C- quality or somewhere in between.
  • It is difficult for analysts to have career paths and to grow professionally when they are not part of a multi-person department. This makes it more difficult to recruit and retain high quality talent which is a handicap to achieving desired quality and economics.
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