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The background screening industry is continually evolving to keep up with the demand for efficient, accurate, comprehensive and affordable searches. Years ago, conducting criminal record research involved only manual processes, which were not only resource-intensive and time-consuming but also prone to errors and inconsistencies. However, the rise of automation technologies has revolutionized this aspect of background screening, enabling Consumer Reporting Agencies (CRAs) to streamline their operations, deliver faster results to their clients, and help them scale while keeping labor costs low.
When it comes to implementing automation, CRAs face a fundamental decision: should they build and manage their own automation capabilities or partner with a data provider? Here's a breakdown of the pros and cons of both approaches.
Building Your Own Automation System
Pros:
Stability and Self-Reliance: When you build it yourself, you ensure its long-term availability (so long as you adapt to the changes in court websites). You never have to worry about a third-party provider being acquired by another company, going out of business, or simply dropping the ball.
Control: With an internally developed system, you have full control over the entire process, from data collection to formatting and reporting. This level of control can enhance data security and quality assurance protocols.
Customization: Building in-house allows you to tailor the technology to suit your specific needs and preferences. You can design features that align precisely with your workflow and client requirements without making requests to your provider that may not be feasible.
Long-Term Cost Savings: While there are initial costs associated, in the long run, it might be more cost-effective than relying on third-party solutions. It’s important to evaluate the total cost of ownership of building and maintaining in-house versus the long-term use of a provider.
Cons:
Resource Intensive: Developing and maintaining in-house requires significant investments of time, money, and expertise. It requires proper allocation of resources for software development, infrastructure, and ongoing maintenance and support, which can be challenging and costly for most companies.
Technical Challenges: Building a robust automation system entails dealing with complex technical challenges, such as data integration, algorithm development, and scalability. Without the necessary expertise, CRAs may struggle to overcome these hurdles effectively.
Mistakes Can Be Costly: Once your automation system is up and running, it’s possible that things may go wrong without proper data security, quality control, ongoing maintenance, etc. For one, these mistakes can impact a large number of searches without the proper failsafes in place. And of course, mistakes can be a massive liability issue if you pass along incomplete or inaccurate information to your clients, causing them to inadvertently make a wrong hiring decision. That could even trigger lawsuits or other regulatory responses.
Example: County websites update all the time. Sometimes, a website might go from one platform to another. In this process, it can break any automation that was built based on the old platform. In this type of scenario, for example, your automation tool may turn back clears when, in fact, the prospective employee’s background check isn’t clear at all.
Partnering with a Data Provider
Pros:
No Administrative Costs: Fixed administrative costs are their problem, not yours. It’s their responsibility to hire and pay the salaries of the development team and invest resources in maintaining and improving their automation.
Technical Expertise: The provider you’re working with should have the in-depth technical knowledge to build and improve automation programs. They’re also more likely to have the resources and engineering challenges to attract better developers, as well as quicker resolution for any technical problems. These providers often have extensive experience and resources dedicated to developing innovative solutions.
Built-in Redundancy: When you’re working with a technology partner – particularly one like InformData with manual research teams – they will have redundancies in place to continue to operate even if things go wrong with the automation.
Scalability: Data providers typically offer scalable solutions that can accommodate fluctuations in workload and client volumes. This allows you to easily scale your operations up or down without having to invest in additional infrastructure or resources.
Data Security: Experienced data providers should have robust data security processes in place to ensure the safety of your work. To ensure that data security is a ‘pro’ and not a ‘con,’ it’s imperative to properly evaluate your provider to ensure that they have processes in place to safeguard your business and ensure the privacy and safety of individuals whose information you handle. Here are some tips on how you can make sure your provider fits the bill.
Cons:
Limited Customization: While partnering with a data provider offers convenience, they may not be able to design their application to format data in a way that makes it easy for your team to act on it immediately. It may also require formatting to get it “customer-ready” for passing along to your background check customers.
Dependency Risk: Relying on a third-party provider entails a degree of dependency, leaving CRAs vulnerable to disruptions or changes in the provider's offerings. Any issues with the provider's system or service can directly impact your operations.
Cost Considerations: While upfront costs are lower, you may be paying more on a transactional basis than if you built the automation on your own. As mentioned previously, it’s important to evaluate the total cost of ownership of building and maintaining in-house versus the long-term use of a provider to determine what’s best for your CRA.
What’s the Right Choice For Your CRA?
There’s no one-size-fits-all answer. The ideal solution depends on your CRA’s size, resources, priorities and long-term strategy. It’s important to carefully weigh the pros and cons of each approach and choose the option that best aligns with your business objectives and capabilities.
If you choose the data partner route, be sure to properly evaluate any potential provider before trusting them with your work. Keep an eye out for an upcoming blog that will highlight what to look for in a background screening automation provider - stay tuned by subscribing here.
At InformData, we’re veterans in criminal background check automation. If you would like to learn more about how our unique combination of cutting-edge software automation and the most experienced researchers in the business can help your CRA grow, contact us here.
