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January 21, 2009

Outsourcing as an option for a Data Warehousing Program

Given the analytical nature of data warehouses (DWs) and the need for understanding the source data and its fluid, changing user requirements, a data warehouse as an entire project is not an appropriate candidate for outsourcing. There are benefits in hiring consultants for some or all of the work to having access to experienced consultants in scope, discovery, development and implementation to assist the in-house staff in knowledge development, skills and staff augmentation.

In an outsourced situation, contracts are very clear about what will and will not be included. The very nature of a data warehouse is that the users are never able to articulate all their requirements initially, meaning each new major opportunity requires renegotiations and contract changes. By the time these details are worked out, the opportunity might be lost. Strategic outsourcing makes sense in most medium to large data warehouse projects. The outsourcing contractor can supply the needed expertise and personnel at the various development phases. Though the up-front costs of an outsourcing firm to be higher than hiring in-house personnel, the long-term savings will be far greater with a professional outsourcing firm than by retaining in-house personnel.

http://www.infonitive.com/2009/01/on-outsourcing-as-alternative-for-data.html

Posted by Amol Patil at January 21, 2009 11:45 PM

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