Which factor most likely indicates that a customer data warehouse should remain in-house?

A strong indication for keeping a customer data warehouse in-house is the presence of privacy laws that restrict the cross-border flow of information. When sensitive customer data is involved, various regulations—such as the General Data Protection Regulation (GDPR) in Europe or other regional privacy laws—can impose strict requirements on how and where data can be stored and processed. If such laws prevent data from being transferred across borders, it becomes vital for organizations to maintain control over their data infrastructure and ensure compliance with these legal obligations.

By retaining the data warehouse in-house, an organization can ensure it adheres to regulatory requirements, safeguarding customer privacy and avoiding significant risks of penalties or reputational damage associated with data breaches or compliance failures. This in-house approach also allows for better oversight and governance over how data is managed, processed, and protected, ensuring that the organization can respond quickly to any changes in legal requirements or privacy concerns.

Other factors, such as time-zone differences or telecommunications costs, may influence operational efficiency or budget considerations but are less critical in assessing the need for compliance with privacy laws, which directly impact how data can be handled. Connectivity issues or software development considerations may lead to operational challenges, but they do not carry the same weight as the legal implications of managing