Data analytics helps an organization achieve insights from huge sets of data. The term refers to subcontracting of data and statistical research in addition to applied computational resources for competent decision making and innovative business solutions to third party vendors. The global market for data analytics outsourcing is expected to grow at a CAGR of over 25% from 2015 to 2022. Rising need for the service among organizations is expected to have a positive impact on the market over the next seven years.
Data analytics tools assist organizations in making improved decisions, reduce operational cost, enhance customer services, increase efficiency and deliver customized offerings. Numerous companies favor using data analytics to examine large amounts of data through several qualitative and quantitative techniques to expand market and customer visions. There has been a substantial increase in the data produced by organizations, owing to the high adoption of mobile devices, social media, and escalating expansion of multimedia content. which, in turn, is expected to have a positive impact on the industry over the forecast period.
Exaggerated data formation by organizations across several segments and declining price of data storage solutions have elevated the rising necessity for taking effective business judgments built on market analysis and insights. Most of the organizations are progressively distinguishing benefits and productivity of applying data analytics, however, the absence of in-house trained and expertise resources in driving them towards global outsourcing data analytics.
The global data analytics outsourcing market is in its emerging stage and is projected to grow at a fast pace over the forecast period, owing to rising awareness regarding advantages and improved productivity attained from data analytics outsourcing. However, privacy apprehensions of data security issues and private data issues confine progress of the data analytics outsourcing market. However, growing investment in real-time analytics and social analytics has shown abundant growth prospects to the various market players over the past few years and trend is expected to continue over the forecast period.
The global data analytics outsourcing market is segmented by application, vertical, geography, and type. By the type of data analytics outsourcing, the market can be segmented into descriptive, prescriptive, and predictive. By application, the market can be segmented into marketing analytics, supply chain analytics, sales analytics, and risk & finance analytics. Data analytics outsourcing market is segmented across five domains such as retail, telecom, BFSI, healthcare, and media & entertainment.
The leading provider in the global market for data analytics outsourcing is Asia Pacific with China, Philippines and India being the key providers. Asia Pacific has been the universal hub for data analytics outsourcing on account of its extremely skilled labor force, technology infrastructure, lower labor cost and efficient telecom infrastructure. High demand for data analytics outsourcing is from Western Europe and North America. However, Latin America, Eastern Europe, and Middle East Asia are anticipated to grow rapidly over the next few years.
The key drivers for the increasing demand in Asia Pacific are the implementation of IT at a significant scale, gaining admittance to expert resources, globalizing processes and improving operations. However, key challenges faced by Asia Pacific are the preference to local outsourcing, and prejudiced perception of consumers that low-cost countries deliver inferior quality services.
Sellers in the global market offer an extensive variety of data analytics outsourcing services to aid clients in framing efficient business plans and maximizing profits. Also, the outsourcing service providers in the global market are collaborating with topmost firms in the market to boost their contributions in the market and broaden their customer base. For example, in November 2013, Fractal Analytics merged with Sequoya, which is a customer management solutions source. This conglomeration was aimed to provide predictive analytics solutions to consumer packaged goods manufacturer and retailers, further driving them to real-time promotion and pricing decisions.
In May 2015, Accenture announced Accenture Analytics Applications Platform for distribution of actionable understanding and data focused decisions. The platform also offers advanced analytics applications catering to requirements of specific companies and industries. The key players of global data analytics outsourcing include Wipro Ltd., Capgemini, Accenture, ZS Associates Inc., Tata Consultancy Services Ltd., and Genpact Ltd.
Accenture introduced 7 advanced analytics applications intended for financial services industry. They comprise offerings for insurance and banking sectors and are planned to simplify analytics decision making. They are designed for customer churn management, customer potential and permit marketing specialists to recognize needs of each consumer.
Applications for financial institutions include Real Time Credit Decision, Wealth Advisory Toolkit, and Allowance for Loan and Lease Losses. Accenture serves companies that turn data into a strategic asset, whether it be entering new markets, reinventing its business, or coming up with new ways to monetize their data. Also, the company develops p its analytics competences to bring customers solutions that can encounter new and varying business needs.
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