Analysis Outsourcing / Augmentation: Is it Right for Your Organization?

Over the last several weeks I have frequently been asked about one particular topic, "How do I get the maximum value out of web analytics for my organization?" Since this is a topic of increasing concern for many companies, I would to take this opportunity to discuss this topic in a bit more detail this month.

More specifically, I want to discuss analysis outsourcing or augmentation to shed light on a method for rapidly progressing the capabilities and sophistication of a web analytics team that is commonly undervalued yet quickly increasing in popularity. This method of leveraging staff augmentation or outsourcing web analytics talent allows many firms to more rapidly achieve their goals.

I have never questioned the value and importance of having internal headcount dedicated to web analytics and the analysis of data relating to web analytics. As it is of critical importance to the success of any program to have internal champions of web analytics who are full time employees. However, to address the growing demand for web analytics services within an organization, there are many situations where outsourcing or staff augmentation would provide significant value beyond simply adding additional internal personal.

At the center of this value proposition is the opportunity costs that an organization faces with regards to the evolution of their level of web analytics sophistication. Essentially, many companies realize that a competitive advantage can be gained by successfully leveraging the most advanced web analytics techniques such as multi-variable testing, life time value analysis, multi channel data integration, and advanced segmentation of their available data. However, the efforts of these same companies are often hindered by the fact that recruiting, training, and retaining experienced staff that posses the various skills needed to gain a competitive advantage is often very difficult.

Below is a summary of the advantages and disadvantages of staff augmentation or outsourcing that I have observed from my years of working with companies here at Stratigent and as the end consumer of web analytics services to maximize the value of web analytics initiatives:

Advantages

Disadvantages
Collective Experience / Knowledge:
Outsourcing or augmenting staff allows an organization access to the collective experience of an entire consulting firm as opposed to being limited to the experience of a single individual.
Business Specific Ramp Up:
Outsourced staff may require additional time to ramp up on the specific internal business practices, terminology and operations as opposed to an existing employee who may already posses this knowledge and would probably not require this additional ramp up time.
Time and Cost Needed Recruit Talent:
Outsourcing or augmenting staff allows an organization access to highly skilled web analytics professionals which are often difficult /impossible to find and expensive to pay, retain, and recruit.
Relative Cost:
Outsourced staff will often cost more than the direct cost of full time employee when compared on an hourly rate basis.
Web Analytics Ramp Up Time:
Efficiency is increased since outsourced experts require minimal training/ramp up time regarding web analytics practices.
 
Ability to Rent Exotic Skill Sets:
Outsourcing or augmenting staff allows an organization to acquire the skill sets of an expert in very specialized fields on an as needed basis rather than having to pay for an individual with those skill sets on a full time basis. Common examples of this might be needing a PhD in applied statistics to validate the design of experiments for an upcoming test or needing to leverage a web analytics strategy guru to review the 3 year plan for a web analytics group.
 
 
It is important to note that analysis outsourcing / staff augmentation may not be the right answer for every organization. But when utilized appropriately, this powerful and often underutilized method of rapidly acquiring web analytics expertise and sophistication can help companies successfully gain a competitive advantage in the ever fierce markets today.
 
Josh Manion
Josh Manion
Chief Executive Officer
Stratigent, LLC

For more information please call 877-427-2900 or email info@stratigent.com.