Navigating the landscape of data management, business intelligence, and data analytics can be particularly challenging for mid-market companies. Unlike enterprises that boast extensive in-house BI departments, these companies often find themselves wondering: should they build an internal data team or outsource their projects to a vendor? The answer may lie in a third, hybrid approach—hiring a fractional data team.
5 Advantages to Hiring a Fractional Data Team
Building an internal team comes with a hefty price tag. You're looking at about $400,000-$500,000 in payroll for a team with the requisite technical skills. Fractional teams, on the other hand, can be accessed for a set monthly fee at a fraction of the cost of maintaining a full-time team. (As an example, see our pricing.)
2) Expertise On-Demand
Mid-market companies frequently lack specialized knowledge in BI, data, and analytics, so finding the right talent for data projects is a significant hurdle. A fractional data team fills this gap by providing immediate access to a diverse range of expertise, allowing you to build data pipelines, maintain data lakehouses, and develop BI reports on an ongoing basis.
3) Flexibility and Scalability
Business needs are ever-changing and the need for different skillsets at various stages of a data project adds another layer of complexity to building an internal team. For example, individuals with the skills needed to set up a data lakehouse and build data pipelines are not usually the same individuals that want to monitor and maintain the solution ongoing or build BI reports from them. A fractional team offers the flexibility to adapt to these evolving needs without the hassle of constant hiring and training.
4) Knowledge Continuity
One of the most overlooked aspects of BI is data continuity. When key team members leave, they often take their expertise with them which can leave projects at a standstill. Fractional data teams mitigate this risk by ensuring that organizational knowledge is retained through maintaining documentation to avoid disruption, rework, and ensure continued progress.
5) Continuous Support and Solution Improvement
Traditional consulting relationships often lack the element of ongoing support and continuous improvement after one-off projects, but there is a lot of value to be realized from ongoing iteration and adaptation as your company evolves. Through a managed data service, fractional data teams provide this level of continuous service, making them an ideal choice for scaling your solution to adapt to changing business needs.
6 Signs It's Time to Consider a Fractional Data Team
If find yourself grappling with some of the following issues, it might be time to explore data management solutions through a fractional data team.
- Expertise Gap: Are you finding it difficult to advance your data initiatives due to a lack of specialized skills within your team?
- Time Sensitive Projects: Do you need to kickstart a new project but can't afford to wait to spin up an in-house team?
- Resource Allocation: Are you torn between expanding in-house capabilities and outsourcing projects?
- Capacity Constraints: Is your team understaffed and unable to stay up to date on best practices and the latest technology in data management?
- Growing Complexity: Are you uncertain about how to manage the increasing complexity of your data?
- Investment Concerns: Is the financial commitment to develop and retain in-house expertise becoming a burden?
If you find yourself nodding to any of these points, it's worth considering hiring a fractional team to manage your data. Not only does it fill the expertise gap, but it also offers a scalable solution that can adapt to your company’s evolving needs.
By partnering with a fractional data team, mid-market companies can focus on their core business, confident that their data is managed by experts. The best results often come from a partner that offers this as an ongoing service with a predictable spend.
Don't underestimate the power of a fractional data team to help you execute your data strategy, especially if you're a middle market company.
Blue Margin’s Managed Data Service (MDS) is designed to provide quick access and insight into company data. It's a subscription-based service that's easy to understand, even for those without a technical background. Unlike other options, MDS is quick to set up, hosted by us, and comes with the support of our expert data team.
For more insights or to discuss how MDS can be tailored to your specific needs, contact us.