Data Analytics Outsourcing Market Size, Share & Trends Report

Data Analytics Outsourcing Market Size, Share & Trends Analysis Report By Type, By Application, By End-use (BFSI, Telecom, Retail, Healthcare, Media & Entertainment, Manufacturing, Others), By Region, And Segment Forecasts, 2018 - 2025

  • Published Date: Sep, 2018
  • Base Year for Estimate: 2017
  • Report ID: GVR-2-68038-561-8
  • Format: Electronic (PDF)
  • Historical Data: 2014 - 2016
  • Number of Pages: 159

Industry Insights

The global data analytics outsourcing market size was valued at USD 2,006 million in 2017 and is expected to grow at a CAGR exceeding 22.8% from 2018 to 2025. The market has witnessed considerable growth over the past few years owing to the emergence of social analytics and rapid increase in the volumes of user data. Additionally, increasing use of social media, which leads to generation of huge amounts of data, and reduction in data storage prices are further expected to boost the market growth.

Data analytics helps an organization achieve valuable 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. Large data collection in organizations across different segments has elevated the necessity for making effective business judgments based on market analysis and insights. Most of the organizations are progressively distinguishing between benefits and productivity of applying data analytics.

U.S. data analytics outsourcing market

Most companies across the globe prefer using data analytics outsourcing to analyze large chunks of data to gain important insights pertaining to customers and market demand. This is expected to boost the growth of the market. Large investments in data analytics by organizations to increase their productivity is further expected to drive the growth of the market over the forecast period.

Organizations across the globe are enhancing their efficiency and profitability by deploying enterprise software systems such as Supply Chain Management (SCM), Enterprise Resource Planning (ERP), and Customer Relationship Management (CRM), among others. The software systems have resulted in generation of large amount of data related to customers, operations, and suppliers. Furthermore, owing to increasing use of internet, large amount of structured and unstructured data available to organizations which provides customer name, purchase history, and location. This is expected to drive demand for data analytics outsourcing for analyzing data.

However, privacy apprehensions of data security issues and private data issues are expected to hinder the growth of the market. Moreover, lack of in-house trained personnel and expertise is further expected to hamper the market growth to a certain extent. Growing investments in social media analytics and real-time analytics have offered significant growth prospects to various market players over the past few years and this trend is expected to continue over the forecast period.

Application Insights

The marketing analytics segment generated the highest revenue in 2017, owing to the emergence of IoT-based technologies and the growing adoption of data-driven decision-making practices. Furthermore, growing investments in digital marketing and preferences for deploying analytics in marketing are further expected to drive the market growth. The growth of social media marketing owing to deployment of chatbot and other applications for providing a better experience to customers has been driving the demand for the marketing analytics segment.

The increasing need to understand consumer behavior & meeting their requirements and growing trend of social media channels are expected to fuel the growth of the marketing analytics segment. Furthermore, the growing demand for analyzing traffic on online channels and features provided by marketing analytics solutions, which provide insights into the market to organizations is expected to drive the growth of the segment.

Type Insights

On the basis of type, the data analytics outsourcing market is segmented into descriptive, predictive, and prescriptive. The growing adoption of digital technologies and big data has impelled enterprises to adopt descriptive analytics owing to the resulting increase in volume of data. The information provided by descriptive analytics help the enterprises to create a better plan for business growth and for better decision-making.

Europe data analytics outsourcing market

The increasing adoption of big data and the demand for analytics are expected to propel the growth of the descriptive analytics segment over the forecast period. Additionally, prescriptive analytics is being implemented by large companies to manage inventory in the supply chain and to optimize production and this is expected to propel growth of the prescriptive analytics segment over the forecast period.

End-use Insights

The BFSI segment is expected to dominate the market over the forecast period owing to increasing transactional data and growing need to implement risk and fraud analytics solution. Furthermore, increasing incidences of money laundering and frauds have encouraged the players in the BFSI sector to adopt data analytics outsourcing solutions.

The demand for reducing healthcare expenditure among hospitals and healthcare providers worldwide is expected to drive the growth of data analytics outsourcing. The use of Electronic Health Records (EHR), eHealth, and mHealth applications that generate significant amounts of patients’ data is further expected to increase the demand for data analytics outsourcing in the healthcare sector.

Regional Insights

North America dominated the market in terms of revenue with market size of USD 713.4 million in 2017. This growth can be attributed to the growing adoption of advanced digital technologies by end users in the region, leading to generation of large volumes of data. In addition, increasing amount of data from various departments including production, procurement, sales & marketing, and human resource is further expected to drive demand for data analytics outsourcing in the region.

The Asia Pacific data analytics outsourcing market is expected to witness significant growth over the forecast period. Asia Pacific has been the universal hub for data analytics outsourcing on account of the availability of skilled labor force, technology infrastructure, lower labor cost, and efficient telecom infrastructure. Additionally, the growing implementation of IT at a significant scale, globalization of processes and improvement in operations, and admittance to expert resources are further expected to propel the market growth.

Data Analytics Outsourcing Market Share Insights

The key players in the market include Trianz; Capgemini; Accenture; ZS Associates Inc.; Tata Consultancy Services Ltd.; Genpact Ltd.; Fractal Analytics Inc.; Opera Solutions, LLC; Associates, Inc.; and International Business Machine Corporation. In May 2015, Accenture announced Accenture Analytics Applications Platform that offers advanced analytics applications for catering to the requirements of specific companies and industries.

The outsourcing service providers in the global market are collaborating with the topmost firms in the market to boost their contributions and broaden their customer base. For instance, in November 2013, Fractal Analytics merged with Sequoya, a customer management solutions provider. The companies aimed to provide predictive analytics solutions to consumer-packaged goods manufacturers and retailers, further driving them toward real-time promotion and pricing decisions.

Report Scope

Attribute

Details

Base year for estimation

2017

Actual estimates/Historic data

2014 - 2016

Forecast period

2018 - 2025

Market representation

Revenue in USD Million & CAGR from 2018 to 2025

Regional scope

North America, Europe, Asia Pacific, Latin America, and MEA

Country scope

U.S., Canada, UK, Germany, India, Japan, China, and Brazil

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

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Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the industry trends in each of the sub segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global data analytics outsourcing market report on the basis of type, application, end-use, and region:

  • Type Outlook (Revenue, USD Million; 2014 - 2025)

    • Descriptive

    • Predictive

    • Prescriptive

  • Application Outlook (Revenue, USD Million; 2014 - 2025)

    • Sales Analytics

    • Marketing Analytics

    • Finance & Risk Analytics

    • Supply Chain Analytics

    • Others

  • End-use Outlook (Revenue, USD Million; 2014 - 2025)

    • BFSI

    • Telecom

    • Retail

    • Healthcare

    • Media & Entertainment

    • Manufacturing

    • Others

  • Regional Outlook (Revenue, USD Million; 2014 - 2025)

    • North America

      • U.S.

      • Canada

    • Europe

      • UK

      • Germany

    • Asia Pacific

      • China

      • India

      • Japan

    • Latin America

      • Brazil

    • Middle East & Africa (MEA)

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