Be cautious of outsourcing database management

Firms that make use of direct marketing should be wary about outsourcing the management of their customer database, the Chartered Institute of Marketing has said.

According to spokesman Ray Jones, it is "risky" to allow an outside source to have access to your "vital" client information as they could use the data for their own commercial gain.

Mr Jones said: "Some companies buy each other for their database/contact list.

"Even in a takeover the database is an asset. I´d be very cautious about outsourcing your database maintenance and management. That is your key differentiator; your database and your customers.

"Your database information is vital and to give it away or entrust it to somebody else is risky, you really should think about the ramifications of that - a word of caution about outsourcing database management."

The Chartered Institute of Marketing is one of the world´s leading bodies for marketing and business development.
© Adfero Ltd