05 Mar 2024

The Real Costs of In-House Data Engineering

In the digital era, the effective management of data platforms is a critical factor for success. As UK organisations grapple with the decision of whether to hire in-house data engineers or opt for managed services we take a closer look at the costs of both options.

The High Cost of Hiring and Onboarding:

Recruiting skilled data engineers isn’t just a challenge—it’s a significant financial undertaking. With UK businesses facing recruitment costs of 15-20% of a new hire’s annual salary, the expenses begin to mount. Factor in the time-consuming nature of sifting through hundreds of applicants and the extensive interview process, and the scale of investment becomes clear. The journey from posting a job to having a fully onboarded team member ready to add value can span months, eating into both productivity and budget.

Direct Costs: More Than Just Salaries:

Beyond recruitment, the direct costs of maintaining an in-house data engineering team add layers of financial commitment. Salaries in the UK range from £40,000 to £60,000 annually, but that’s just the beginning. Ensuring round-the-clock service requires at least three engineers, further inflating your budget and complicating the path to providing continuous, business-critical services.

The Challenge of Ongoing Training:

The pace at which database technologies evolve is relentless. Keeping an in-house team up-to-date requires ongoing investment in training, adding another cost layer and diverting resources from strategic projects.

Resource Utilisation:

Resource underutilisation during slower periods presents a dilemma. Finding meaningful tasks that align with the team’s skill set can be challenging, leading to inefficiencies and unnecessary costs.

Data Platform Managed Services can be a strategic alternative, offering:

  • Predictable Budgeting: A subscription-based model brings financial clarity and simplifies planning, which is especially crucial for small and medium-sized enterprises (SMEs) in the UK, enabling them to allocate funds strategically and invest in areas that drive growth.
  • Staff Savings: By reducing the need for a large in-house team, you can significantly cut overhead costs associated with hiring and training.
  • Scalable Resources: Pay for what you need, when you need it, ensuring efficient resource use.
  • Expert Knowledge On-Demand: Managed Services give you direct access to top-tier expertise and the latest technological advancements without the burden of ongoing training costs for your team.

Choosing Data Platform Managed Services over building an in-house team not only offers compelling cost benefits but also positions your organisation for greater agility, scalability, and strategic focus.

We work with businesses across finance, insurance, retail, consumer goods, and professional services to deliver higher cost efficiency, unlock specialised expertise and help scale data solutions to allow our clients to focus on their core business objectives.

Read the next instalment and find out more about the advantages of Managed Services.

By partnering with us, you can ensure your data management strategy is both cost-effective and future-proof –  contact us today for a personalised consultation.