What Is a Fractional Data Team and Why More COOs Are Choosing This Over In-House Analysts

As mid-market and emerging businesses look to unlock more value from their data, many COOs are facing a familiar crossroads: should we hire a full-time data analyst or bring in a fractional data team?

It’s a question that’s becoming more common, and for good reason. The data needs of a business are growing fast, but internal resources often can’t keep up. That’s where the fractional model comes in.

In this article, we’ll break down:

• What a fractional data team is

• Why it’s gaining traction with COOs and operational leaders

• How it compares to hiring in-house

• When it makes the most sense

• What to look for in a fractional partner

What Is a Fractional Data Team?

A fractional data team is a group of data specialists you engage part-time, often on a subscription basis, to act as your outsourced analytics function. Instead of hiring one full-time analyst or data engineer, you get access to a broader skillset, typically including:

• Data analysts

• Engineers

• Visualisation specialists

• Dashboard developers

• AI/ML experts (as needed)

They work with your team across areas like:

• Building dashboards

• Automating reporting

• Data integration

• Setting up and maintaining your cloud data warehouse

• Developing forecasting and performance models

You get this capability without the need to recruit, onboard, or retain a full-time team.

Why More COOs Are Choosing This Model

Here’s what’s driving the shift:

1. Faster ROI

In-house hires are expensive and take months to ramp up. A fractional team can usually start delivering value in weeks. Need a Power BI dashboard to replace your messy Excel reports? Done. Want automated monthly reporting? That’s sorted.

2. Wider Capability

Even a great in-house analyst can’t do it all. A fractional team brings a blend of skills. You don’t just get one person, you get the skills of five, without five salaries.

3. No Hiring or Retention Pressure

Hiring good data talent is hard. Retaining them is harder. A fractional model sidesteps both, no job ads, interviews, or worrying about someone leaving in six months.

4. Flexibility to Scale Up or Down

Need help with a new system rollout? Scale up support. Quiet quarter ahead? Scale it back. With a team like Pentify Insights, you can flex service days up or down each month based on demand.

5. Access to Strategic Thinking

It’s not just number crunching. A good fractional partner will help shape your data strategy, defining the right KPIs, choosing the right tools, and helping you shift from gut feel to insight-driven decisions.

The Cost Comparison: In-House vs Fractional

Let’s compare the costs of hiring a mid-level data analyst vs engaging a fractional data team:

Cost Item	In-House Analyst	Fractional Team (e.g. Pentify)
Salary	$120,000+	None
Super, overheads, tools	$25,000+	Included in monthly fee
Time to recruit/onboard	2-3 months	1-2 weeks
Scope of skills	Limited to one	Broad team of experts
Flexibility	Low	High, adjust monthly

Typical fractional data team costs range from $2,000 to $6,450 per month, depending on how many days you need.

It’s not just cheaper, it’s lower risk and higher output.

When Does a Fractional Data Team Make Sense?

It’s not for everyone. But it’s a great fit for businesses that:

• Want to improve reporting without hiring full-time

• Have multiple systems (e.g. Xero, HubSpot, LinkedIn, GA4) and need them connected

• Need support building and maintaining dashboards

• Are frustrated by manual reporting and poor visibility

• Don’t have the time or capability to build a data strategy in-house

If your finance or ops team is still manually updating spreadsheets each week, this model is for you.

What Should You Look for in a Fractional Data Team?

Here’s what separates a good partner from a painful one:

• Business-first mindset

Look for a team that understands operations, finance, and strategic goals, not just tech jargon.

• Data strategy as well as delivery

It’s not enough to build reports. You need a partner that helps shape your metrics, priorities, and roadmap.

• Clear pricing and flexibility

The best teams offer monthly packages with options to scale up or down, and clear carry forward rules.

At Pentify Insights, for example, clients can carry forward 25% of unused support days into the next month.

• Local knowledge

If you're based in Australia, you want a team that understands your tools, tax landscape, and business context.

Real-World Use Case: What It Looks Like

A growing accounting firm needed real-time visibility across client workflows. Their team was spending hours manually reconciling data between ATO, Xero, and internal spreadsheets.

They engaged Pentify Insights on a 3-day-per-month model. Within 4 weeks, we:

• Set up a cloud data warehouse

• Automated data pipelines from 4 systems

• Built live dashboards for sprint planning and workload visibility

• Reduced manual effort by over 20 hours per week

No full-time hire. No infrastructure cost. Just results.

Final Word: Is This Right for Your Business?

If you’re a COO or CFO trying to get better visibility, automate manual reporting, or unlock smarter decisions without adding headcount, a fractional data team could be exactly what you need.

It’s a flexible, scalable, and cost-effective way to bring expert-level data capability into your business.

Need help exploring how this could work for you? Let’s have a chat.