Navigating Data: Building Your Own Dream Team or Partnering with Experts?

8 minutes


Many businesses struggle to harness the power of information. Some haven’t built a data analytics team yet, flying blind without insights to guide decisions. Some have already started exploring the world of data but are still lost between two solutions, trying to figure out what will work best: an in-house team or an outsourced data agency.

In-House Analytics: Pros and Cons

For businesses, the option of having its own data team seems very promising. 


In-house teams understand the nuances of the business they work for, ensuring their analyses align closely with the company’s vision and goals. They are always on hand to address urgent data needs, enabling quicker responses and faster decision-making. Having a data team in-house allows for greater customization to meet specific business needs and reduces the risk of breaches — proprietary information remains within the company. Finally, in-house teams foster strong relationships with other departments, leading to more integrated and holistic data solutions.


But before achieving results, businesses will inevitably face some challenges, especially smaller ones.

Building a data dream team requires significant investment 

Salaries, benefits, recruitment costs, and infrastructure add up quickly. For smaller companies, this initial hurdle can be a major barrier to entry.

The data analytics job market is fiercely competitive

Attracting and retaining top talent requires competitive compensation packages and a stimulating work environment. For companies without an established data culture, this can be a significant challenge.

Businesses may not fully understand their data needs and hire the wrong type of data professional

For example, they may hire a data analyst when they actually need a data engineer to collect and store data before actually working with it. This can lead to inefficient use of resources and a delay in getting the most out of data analytics. Especially over time, as the hires’ workloads change, later on, once the engineering is done, it’ll be challenging to keep data engineers engaged. This, in turn, will lead to costly turnover.

Small in-house teams may struggle with knowledge sharing and collaboration compared to larger agencies

This can limit creativity and hinder the development of innovative solutions.

Ensuring data security is paramount

Companies with in-house teams need to invest in robust security protocols and staff training to mitigate potential risks.

Outsourcing Your Analytics To a Data Agency: Pros

Outsourcing emerges as an effective response, providing access to specialized expertise, flexible scaling, and cost-effective solutions, along with many other benefits it brings to the table. 

Cost Efficiency: Direct Savings on Hiring and Onboarding

Hiring and onboarding a team of data analysts can be a significant financial burden. When you factor in salaries, benefits, and the time invested in training, the costs can escalate quickly. For example, the cost of hiring a three-person in-house team (Data Analyst, Data Engineer, and HR) might reach over $94,000 over 6 months. Outsourcing to Valiotti Analytics could be around $40,000, getting the project done in just 3 months, as more people are working on it. The team includes an Analytics Lead, Senior and Junior Data Analysts, a Data Engineer, and a project manager. This translates to a potential saving of almost 60% and results delivered 2 times faster, making outsourcing a more financially viable option.

In-house data analytics vs. Outsourcing to Valiotti Analytics: costs breakdown

Working with VA
Month-1 Month-2 Month-3
VA Team (Analytics Lead, SDA, JDA, pDE, pPM) $13,500 $13,500 $13,500
Project completion progress 35% 70% 100%
Total cost: (100%) $40,500
Building In-house team
Month-1 Month-2 Month-3 Month-4 Month-5 Month-6
Project completion progress Onboarding Onboarding 25% 50% 75% 100%
Data Analyst $6,200 $6,200 $6,200 $6,200 $6,200 $6,200
Data Engineer $9,190 $9,190 $9,190 $9,190 $9,190 $9,190
HR $2,220
Total cost: (100%) $94,560

Expense Optimization: Reducing Overhead Costs

Outsourcing your data analytics needs allows you to optimize several expenses. You can save on taxes, corporate benefits, paid vacations, and other overheads associated with full-time employees. These savings can then be redirected to core business areas that drive growth.

Quick Access to Expertise and Experience

A data analytics agency like Valiotti Analytics brings a wealth of experience to the table. We have successfully handled numerous projects similar to yours, ensuring we can deliver concrete results swiftly. There’s no need to spend months recruiting and training staff when you can immediately tap into our expertise.

Scalability and Budget Optimization

Outsourcing offers unparalleled flexibility. If you have a surge in data analytics needs, you can quickly scale up resources. Conversely, if your needs decrease, you can scale down, optimizing your budget without the hassle of hiring or laying off employees.

Focus on Core Competencies

Just as you wouldn’t perform dental work on yourself, you shouldn’t try to develop competencies that aren’t central to your business. By outsourcing data analytics, you can focus on what you do best—whether that’s product development, sales, or marketing—while leaving the analytics to the experts.

Access to Advanced Technologies and Networks

Data analytics agencies are well-connected with numerous vendors and have access to the latest technologies. This means we can swiftly identify and implement the best solutions for your needs, whereas an in-house team might spend considerable time researching and testing different technologies.

Flexibility in Engagement Models

Outsourcing, you can choose the engagement model that best suits your needs, whether it’s a project-based collaboration or ongoing support. We at Valiotti Analytics provide the flexibility to adapt to your business requirements. Our initial setup will be thorough, optimal, and correctly implemented. After that, you can continue working with us at full capacity, opt for periodic support, or hire your own team with full documentation and support from us—no hard feelings. This flexibility ensures that you receive the level of service that aligns with your business requirements and long-term objectives.

Motivation and Continuous Learning

In-house data analysts might face periods of low engagement if they aren’t consistently challenged with complex tasks. This can lead to boredom and high turnover. Agencies continually provide their teams with challenging projects and professional development opportunities, ensuring they remain motivated and at the top of their game.

Collaborative Environment and Knowledge Exchange

For a sole in-house analyst or engineer, the lack of peer interaction can stifle growth and innovation. In contrast, a data analytics agency fosters a collaborative environment where knowledge exchange is encouraged, leading to better results for your business.

Achieving Results through Clear Goal Setting

Setting the right objectives for an in-house team can be daunting, especially if you lack the technical expertise. Our agency ensures that we ask the right questions and work closely with you to understand and achieve your goals efficiently.

The Competitive Job Market

The job market for skilled data analysts is highly competitive. Talented professionals often prefer large corporations over smaller businesses, making it difficult to attract and retain top talent. By outsourcing, you bypass this challenge and gain immediate access to highly skilled professionals.

In-house Team vs Outsourcing Data Analytics: Conclusions

While outsourcing offers numerous advantages, it’s important to consider potential downsides. These include less direct control over the team, possible communication barriers, and concerns over data security. However, these challenges can be mitigated by choosing a reputable agency like Valiotti Analytics, as we prioritize communication, robust security measures, and a collaborative approach. 

If you’d like to experience all these benefits for your business, schedule a free call with our CEO to discuss your project.