15 Benefits of Managed Data Services
Data is at the very core of businesses, so managing it effectively is critical to any company’s success. In fact, according to recent statistics, 91.9% of organizations achieved measurable value from data and analytics investments in 2023. Because of this, there are many ways to ensure the safety and efficiency of your data. One of the best strategies is to leverage managed data services, a solution that handles the bulk of your data needs so your team can focus on your core business. The importance of these services in today's business landscape cannot be overstated, as they provide significant benefits ranging from enhanced efficiency to improved data security. Today’s article will dive into what managed data services are and the different benefits they can bring to your business.
What are Managed Data Services?
Managed data services are third-party solutions that handle the end-to-end management of your company's data infrastructure. This includes everything from data storage and backup to analysis and master data management reporting. The goal is to maximize the value of your data while minimizing the resources spent on managing it.
There are various types of managed data services like cloud-based services, on-premises services, or hybrid services. The chosen type depends on the specific needs and resources of a business. So how do all of these services work? Simply put, managed data service providers take over the functions of your IT team related to data management. They maintain your hardware and software, ensure the security of your data, provide analytics and reporting, and offer round-the-clock support for any issues that may arise. This helps your team focus on core business functions while ensuring data security and efficiency.
The Rise of Managed Data Services in Modern Business
It's hard to overlook the surge in managed data services. This rise is not just a trend but a response to the increasing complexity and volume of data businesses handle daily. In the early 2000s, data management was largely an in-house affair. Fast forward to today, and you'll find that outsourcing data management to specialized service providers has become the norm. A report by MarketsandMarkets predicts that the managed services market, which includes managed data services, is expected to grow from USD 223.0 billion in 2020 to USD 329.1 billion by 2025. This staggering growth is proof of the crucial role these services play in contemporary business operations.
But what's driving this surge? One of the primary reasons is the exponential growth in data seen across the last decade. IDC estimates that the global data sphere will reach 175 zettabytes by 2025. For businesses, managing this deluge of data in-house is becoming increasingly untenable, both in terms of resources and expertise. Managed data services offer a way out, providing organizations with the ability to handle large volumes of data efficiently and effectively.
Another factor powering the popularity of onshore and nearshore managed data services is the growing complexity of data. With the advent of big data, Edge Computing, and AI, the types of data businesses deal with have become more varied and complex. Managed data services bring the necessary expertise and tools to the table, allowing businesses to glean meaningful insights from this complexity.
Furthermore, the rising concerns around data security and compliance have fueled the growth of managed data services. As data breaches become more frequent and costly, and regulations like GDPR come into force, businesses are turning to managed data services for their robust security measures and compliance expertise.
Overall, the rise of managed data services in modern business is a reflection of the changing dynamics of data management. It signifies a shift towards more strategic, efficient, and secure handling of data, crucial for businesses looking to thrive in the digital age.
15 Benefits of Managed Data Services
1. Increased Data Efficiency
Managed data services enhance the efficiency of your business operations by automating repetitive tasks. This automation enables your team to dedicate their time and energy towards strategic initiatives, thereby boosting productivity and overall business performance.
2. Major Cost Savings
Outsourcing data management to managed service providers can result in a significantly greater IT cost efficiency. You can avoid expenses associated with hiring, training, and maintaining an in-house IT team, making it a cost-effective solution.
3. Improved Data Security
Managed service providers employ advanced security protocols and measures to safeguard your data from potential threats. This can significantly reduce the risk of data breaches and compliance issues, enhancing the overall security of your business data.
4. Access to Expertise
By utilizing managed data services, you gain access to a team of experts who specialize in data management. This ensures your operations are consistently up-to-date with the latest data management practices and technologies.
5. Scalability
As your business expands, managed data services can effortlessly scale up to meet your growing needs without necessitating significant additional investments, ensuring a smooth growth transition.
6. Enhanced Master Data Management
Managed data services employ superior tools and expertise, which improves the quality of your data management. This leads to more precise data analysis and reporting, from data dashboards to edge computing, enabling better business decisions.
7. Ease of Compliance and Regulations
Managed data service providers are knowledgeable in industry regulations, ensuring that your data practices remain compliant. This helps you avoid any non-compliance issues and costly fines.
8. Reliable Backup and Data Recovery
In the event of a disaster, managed data services offer quick and reliable data recovery options. This minimizes downtime and productivity loss, ensuring business continuity.
9. Business Continuity
Managed data services play a crucial role in ensuring the continuous availability of your data, thereby maintaining business continuity even during unforeseen circumstances.
10. Better Decision Making
High-quality data management provided by managed data services enables you to make more informed, data-driven decisions that can make or break your business operations. These decisions can drive business growth and success.
11. Faster Implementation of New Technologies
Managed service providers stay at the forefront of technology, ensuring you benefit from the latest innovations without having to worry about the implementation process.
12. Less Operational Downtime
With enhanced data monitoring and support, managed data services can quickly address any issues that arise, reducing downtime and its associated costs, and ensuring smooth business operations.
13. Streamlined Operations
By outsourcing data management tasks to experts, your team is free to focus on core business functions. This leads to more streamlined operations and increased overall efficiency.
14. Data Customization
Managed data services can be customized to fit your specific needs, ensuring you get the most value from your investment. With the help of an agency, you can unlock data solutions that are tailor-made to support your business.
15. 24/7 Support
With round-the-clock support from your managed data service provider, you can rest assured that assistance is always available when you need it, providing peace of mind and reliable service.
What About Nearshore Managed Data Services?
When it comes to managed data services, nearshore software development has emerged as a powerful strategy for modern businesses. Nearshore managed data services refer to outsourcing data management tasks to providers in geographically close countries. This approach combines the benefits of cost efficiency and proximity, striking a balance that's reshaping how businesses handle their data needs.
One of the key benefits of nearshore-managed data services is the alignment of time zones. Imagine having your data managed by a team that operates almost parallel to your business hours. This synchronicity allows for real-time communication and swift resolution of data-related issues, an advantage that's hard to overstate. According to a study by Deloitte, companies that leverage nearshore services report a 30-50% increase in the efficiency of their communication and project management.
Cost efficiency is another major draw. While nearshore services offer cost savings similar to offshoring, they come with the added benefits of reduced travel costs and easier onsite visits, if needed. A report by PwC found that nearshoring can cut operational costs by up to 25% for businesses, primarily due to lower labor costs and operational efficiencies.
Moreover, nearshore managed data services offer a level of cultural and regulatory understanding that's often missing in offshore models. This understanding is crucial, especially when managing sensitive data or navigating complex compliance landscapes. Nearshore providers are more likely to be familiar with the legal and business norms of their clients’ regions, reducing the risk of compliance issues.
In the tech-driven world, keeping up with rapid technological advancements is vital. Nearshore providers often bring a wealth of expertise in cutting-edge data management technologies and practices. This expertise ensures that your data isn't just being managed; it's being optimized and future-proofed.
Optimize Your Data Solutions With ACL’s Managed Data Services
Ready to unlock your business's full potential? Optimize your data solutions with ACL's managed data services. We can help you manage and protect your company data while you focus on your core business operations. Our comprehensive data services are designed to provide you with insights that inform better decision-making, optimize your operations, and enhance customer experiences. From analytics to big data management, we tailor our solutions to meet your unique needs.
