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Purpose of Outsourcing Data Management

Applied IT (Year 12) - Project Management (U4)

Christian Bien

What does 'Data Management' mean?

Data management consists of the entry and policies of the storage of valuable data. 

Advantages of Outsourcing Data Management

Below are some advantages of outsourcing data management:

  • Save on costs - global outsourcing of data management leads to lower costs but achieves the same purpose.

  • Eliminate investment on infrastructure and technology - businesses will not need to invest in data management technologies and eliminates the need to constantly increase expenditure on acquiring latest data management systems. Outsourcing provides access to the latest data management systems.

  • Saves on ICT costs in managing data in-house - eliminates cost for support, hardware and software of data management

  • Saves on physical space

Disadvantages of Outsourcing Data Management

The main disadvantage of outsourcing of data management is the lack of control over the data. As the data is handled by a third party, it can be unclear what access and who can access sensitive data. 

Organisations that hold sensitive data, such as government agencies or law firms, should be very clear in how and where their data is stored, and who can access it. 

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