In today’s business, no matter the vertical, good data is crucial for making informed decisions, driving growth, and improving efficiency. For law firms, achieving “good data” is often challenging as there are often multiple, siloed systems that aren’t fully managed but are collecting data, even if it is outdated, inaccurate or incomplete. 

The challenge to consolidate and clean data records across systems seems daunting, yet there are solutions. Data stewards can help firms overcome the challenges by ensuring the quality, consistency, and accessibility of information across all systems, promoting data-driven decision-making.

But the question is this function better managed in-house or outsourced?  Let’s explore the factors to consider when making this critical decision.

Insourced Data Stewards

Having data stewards in-house is good, but don’t decide to bring them in just because you think it will help. You should consider factors such as expertise, availability, workload management, and scalability.

The effectiveness of an in-house data quality professional hinges on their data governance and industry knowledge. Does your firm currently have staff with the necessary skills and expertise to handle complex data management challenges? If not, your firm will need to factor in the investment in training existing staff or recruiting qualified leads. Building internal expertise takes time, and any delays can hinder your firm’s ability to leverage its contact data.

Adding data stewardship responsibilities to existing employees can overburden them and potentially impact the quality of their primary responsibilities. That is why it is important to consider the current workload of potential candidates. Can your firm dedicate enough resources to support data stewards and give them the time they need to effectively manage the firm’s data?

Consider your company’s strengths before choosing an in-house data steward. It’s important to assess internal resources and capabilities realistically.

Outsourced Data Stewards

Outsourcing the data steward function can be a good option for law firms with limited budgets and resources, but there are still some things to consider.

One of the primary concerns with outsourcing is the loss of control over your firm’s data. While reputable providers offer robust security measures, some firms may feel less comfortable entrusting their data to an external entity. Choosing a reputable firm with robust security protocols and a proven track record in data privacy is crucial. 

Clear communication and collaboration are essential for successful data governance. 

The biggest factor to consider when deciding between in-house and outsource is the cost. For smaller firms, outsourcing Data Stewards can save firms at least $40,000 in reduced investment in salaries, insurance and other benefits. Depending on the size of your firm and the amount of data you need cleaned, in-house data stewards can range between $66k to over $400k, while outsourcing the same work can range between $38k and $270k. 

Compare these costs with the salary, benefits, and training expenses associated with employing an in-house data steward to make an informed decision that aligns with your firm’s budget for data governance in the long term.

By weighing the factors mentioned above, your firm can make an informed decision about whether to insource or outsource data stewards. In some cases, a hybrid model might be the most suitable option, with an in-house data champion collaborating with an external provider for specific tasks.