Data Governance opens the door to outsourcing
Enterprise Data Management covers a lot of aspects within the world of data management within companies and it is often seen as “the word for” all the data management activities in and around a company. The explanation by Techopedia is as follows:
Enterprise data management (EDM) is an organization’s ability to effectively create, integrate, disseminate and manage data for all enterprise applications, processes and entities requiring timely and accurate data delivery. By Techopedia
Therefore Data governance is also part of this bigger idea. The fact that data governance has impact on the business we all agree on. People, structures, procedures and many others things has to change in order to create a well-functioning data governance environment. One aspect is often forgotten about or not mentioned when data governance and particular data governance tools are implemented. With Data governance organizations create the possibility to open the door for outsourcing.
Implementing a central system of data governance opens the door for moving towards shared service centers as many global players already do. They implement this way of working with a second agenda in mind of cost reducing activities. Let us explore this thought a little bit deeper.
Because of the guidelines created by data governance management the organization is capable of making one set of global rules for everyone. With the globalization it is possible that this set of rules is being managed from one center in the world were all the knowledge is gathered and explored.
It makes it easy to centralize activities around data creation, data quality checks, data analysis and data cleaning. This centralization gives companies the ultimate option to set up shared service centers that take over the task of low cost jobs. They create the opportunity to divert them to low cost countries.
I am certain that some roles are still local because of the specific knowledge that is needed. However most of the jobs can be diverted elsewhere. This are the countries you hear often about such as India, Eastern Europe and Asia. Possibly in the future there will be also a shift towards Africa.
This is happening at many companies around the globe nowadays. I think technology will stop some of these shifts. At that time most of the activities relating to, for example data creation, are no longer done by humans. Data governance opens the door towards outsourcing and this is part of the globalization. In my opinion there is nothing wrong with this globalization. However if you are in the world data management then I would advise you to take this serious and be aware.