Data and information have always been very crucial in all walks of life from very old ages. Traditional ways would be used to manage and benefit from it in the past. But, with the advent of the modern concept of big data, it has become more complex to skim its hidden value for business, and manage it properly without the help of deep knowledge, powerful methodologies and specialty tools.
Data scientist is a person that deals with the different aspects of data science. A person with a desirable level of acumen, equipped with deep mathematical knowledge and powerful software tools to handle and scan the value from the big heaps of data is called the data scientist or data analyst in the modern era of information. All those skills, qualification and the acumen give a great push to data scientist salary, and increase the demand in the marketplace.
There are many types of roles commonly used in the industry; they include data scientist, data analyst, data engineer, data architect and others. All those roles require different skill sets and experience level.
Data Scientist Salary Rates
The data scientist salary rates are increasing consistently across the globe due to the increasing demand in the marketplace.
The main drivers of salary rate include data scientist qualifications, experience and skill set.
The availability of data analytics experts is also a minor factor in determining the salary rate in certain areas.
According to the latest Indeed research, the average salary of a data scientist is $130,502 per annum in the United States. Cisco system is the highest paying company, while New York and San Francisco are the top paying cities in the country. According to PayScale, the median salary for a data scientist is $91,410. The lower end salary rate stands at about $61K, while the higher end salary rate stands at $148K.
How Can a Business Benefit from Hiring a Data Scientist?
According to IDC predictions, the global revenue of big data and analytics (BDA) is expected to cross $203 billion by 2020 with over 11.7% compound annual growth rate (CAGR). This huge increase is driven by the innovative technologies, increasing the volume of big data, and increase in data-driven decisions on the global business horizon.
Industries are aggressively starting to understand the power and value, driven from a huge heap of data available in the data warehouses.
According to IDC research findings, the data monetization will become a fundamental component in many sectors like banking, security, insurance and many others. The size of total data is expected to cross 180 zettabytes by 2025.
Meanwhile, many experts believe that the combination of artificial intelligence (AI) and big data is going to be a bright spot in the promising future of data science analysis field.
Business Backgrounds That Require Data Analytics
Data science was an irrelevant question a couple of decades back, but it has emerged at the central point of focus during the past few years. Many business sectors and industries have been impacted tremendously by the data science definition and its promising business value during the past decade. In such industries, banking, insurance, investment & security services, healthcare, telecom, education, retail services, professional services and others are a few that have been highly influenced by the impact and promises of data science.
What Is Impact of Data Scientist Work on the Businesses?
If you look at the technical human resource market, you would find a huge increase in both the data scientist jobs and the data analyst jobs. The data analyst salary is also increasing rapidly. This is all because of the desired impact of the data scientist work on the business bottom line.
Data scientist work helps you achieve the following objectives in your organizations:
- Helps you to get low risk-driven action plan
- Empowers the management for better business decisions
- Identifies trends and business opportunities in the future
- Helps in choosing the right market segment for the businesses
- Helps in the sensible hiring of required human resources
- Helps in increasing the efficiency and performance of the employees
- Helps in increasing revenue through new revenue streams and decreasing the expenses
How long does a data scientist normally take to bring visible upgrades?
The time required for a data scientist to bring a visible upgrade depends on many factors such as the type of industry, the volume of data, data analysis tools, desired objectives, skills and experience of data scientist, and many others. According to the New York Time report, data cleaning and preparation are two fundamental activities in the entire project that take about 50% to 80% of the project man hours. Normally, a data analysis project takes between 20 to 50 man hours based on the scope of the project.
What is the cost of bringing visible upgrades?
The cost of the project depends on the scope of the project, the type of industry and volume of data to be analyzed. As we know, the cost is directly associated with the man hours and the hourly rate of the data scientist.
The salary of data scientists also varies based on the skill set, experience and qualifications. There is a substantial difference between the data analyst salary and the senior data analyst salary; similarly, the entry-level data analyst salary is also different with different qualifications.
If we look at the online freelancing websites, the hourly rate of a data scientist ranges from $35 to $200. If we take an average, it will be about $117 per hour. Thus, we can say that it will cost about $2000 for a small data analysis project. It should be noted that this all depends on the project scope and data scientist salary.
Different ways to hire a data scientist
As we discussed in this article, the median salary range of a data scientist is about $92K along with the fringe benefits and social securities. So, it becomes a costly trade for an SMB to hire and manage an independent data scientist permanently.
In such circumstances, the outstaffing is the best option to choose. It will relieve you from long processes of hiring and managing dedicated human resources. You can hire a third party contractor to accomplish your tasks at one-time fixed charges.